When purchasing any big-ticket item, such as a home or a vehicle, how well the asset will retain its value is an extremely important consideration. While homes typically tend to appreciate in value over time, most vehicles are considered depreciating assets because they get worn out with use. As a result, vehicles are susceptible to the phenomenon of “negative equity.”
Negative equity refers to a state when the amount owed on an asset is greater than its resale value at a given time. According to Brad Rome, president of Canadian Black Book, negative equity can amount to “a very large sum of money, which is why understanding what cars hold value well, negative equity and when during your auto loan you will be in an equity position, is so very important.”
The impact of negative equity is most observable when a vehicle is being traded in to purchase a newer vehicle. Each year, after tracking and comparing vehicle depreciation across all models, Canadian Black Book determines the winners of its Best Retained Value Awards. Additionally, their loan equity calculator helps illustrate how well vehicles hold their value over time.
We’ve featured some of our favourite offers this week chosen from Canadian Black Book’s list of 2019 Best Retained Value award winners. If you don’t find an offer that suits you, be sure to check out the Globe Drive Build and Price Tool to see the latest incentives and discounts on any new car, truck or SUV.
The Jeep Wrangler has won the Best Retained Value award in the compact crossover/SUV category for nine consecutive years. When equipped with a 3.6-litre, V-6 Pentastar engine, the 2019 Jeep Wrangler Sport generates 285 horsepower and 260 lb.-ft. of torque, while achieving a combined fuel economy of 11.8 litres/100 km. Also available on the 2019 Wrangler is a more fuel efficient 270-horsepower, 2.0-litre turbo engine that consumes a combined 10 litres/100 km. Highlights on the 2019 Wrangler Sport include an eight-speaker audio system, weatherproof push-button ignition, an engine-block heater, full metal doors and a removable soft-top roof. All 2019 Wrangler trims come standard with Jeep’s well-known 4x4 capability.
2019 Jeep Wrangler Sport
- MSRP: $35,195.
- Manufacturer cash incentive: $1,500.
- Estimated dealer discount: $750.
- Freight, PDI, government fees: $1,935.
- Cash purchase price before tax: $34,880.
- Finance for 60 months at 4.29-per-cent interest for $734 per month including tax, which includes a $1,500 manufacturer incentive and assumes zero down payment.
- Lease for 48 months at 4.49-per-cent interest (as compared to 7.69 per cent in April) for $498 per month including tax, which includes a $500 manufacturer incentive and assumes a 24,000 annual kilometre allowance with zero down payment.
The Mercedes-Benz GLA edged out the Audi Q3 and MINI Countryman to lead the newly-formed subcompact luxury crossover category. The 2019 Mercedes-Benz GLA 250 produces 208 horsepower and 258 lb.-ft. of torque through a 2.0-litre, four-cylinder turbocharged engine, mated to Mercedes-Benz’s proprietary 4MATIC all-wheel drivetrain. The 2019 GLA 250 features notable safety and customization technologies, such as active brake assist with adaptive braking technology; attention assist, which monitors driving behaviour to detect driver fatigue; rain-sensing wipers with a heated windshield washing system; and dynamic select, which allows the driver to choose between four preset driving modes or create an individual mode based on driving preferences.
2019 Mercedes-Benz GLA 250 4MATIC
- MSRP: $39,200.
- Manufacturer cash incentive: $3,500.
- Estimated dealer discount: $1,000.
- Freight, PDI, government fees: $2,810.
- Cash purchase price before tax: $37,510.
- Finance for 60 months at 1.49-per-cent interest (as compared to 1.9 per cent in April) for $748 a month including tax, which includes a $2,750 manufacturer incentive and assumes zero down payment.
- Lease for 45 months at 2.49 (as compared to 2.0 per cent in April) for $655 a month including tax and assumes a 24,000 annual kilometre allowance with zero down payment.
The Ford Mustang replaced the Dodge Challenger to win its first-ever Best Retained Value award in the sports car category. The 2019 Ford Mustang comes standard with a 2.3-litre EcoBoost engine that produces 310 horsepower and 350 lb.-ft. of torque. It features a SYNC3 infotainment system with Android Auto and Apple CarPlay compatibility, nine-speaker sound system, active noise cancellation, SiriusXM capability, dual-zone climate control, push-button engine ignition, leather-trimmed front seats with heating and cooling capability, LED headlights and taillights, and Ford’s premium electronic stability control system called AdvanceTrac.
2019 Ford Mustang EcoBoost Premium Coupe
- MSRP: $36,975.
- Manufacturer cash incentive: $8,500 (as compared to $6,250 in April).
- Ford Technology Bonus: $750 (applied after tax).
- Estimated dealer discount: $750.
- Freight, PDI, government fees: $1,890.
- Cash purchase price before tax: $28,951.
- Finance for 60 months at 3.99-per-cent interest for $658 a month including tax, which includes a $6,000 manufacturer incentive (as compared to $3,750 in April), a $750 after-tax Ford Technology Bonus, and assumes zero down payment.
- Lease for 48 months at 5.49-per-cent interest for $537 a month including tax, which includes a $6,000 manufacturer incentive (as compared to $3,750 in April), a $750 after-tax Ford Technology Bonus, and assumes a 20,000 annual kilometre allowance with zero down payment
The Tundra and Tacoma, Toyota’s full-sized and mid-sized pickup models have both led their categories in best retained value consecutively for the last ten years. The 2019 Toyota Tundra is powered by a 5.7-litre, V-8 i-FORCE engine that generates 381 horsepower and 401 lb.-ft. of torque. All Tundra trims are equipped with Toyota Safety Sense, which includes a precollision system with pedestrian detection, lane-departure alert, automatic high-beam and dynamic-radar cruise control, as well as the Star Safety System, which includes smart-stop technology, vehicle-stability control, brake assist and electronic brake-force distribution. Additionally, the Limited trim also features a nine-speaker audio system, a seven-inch infotainment display with navigation, voice recognition capability, navigation, leather seating surfaces, windshield wiper de-icing capability, a backup camera, LED headlights and LED fog lights.
2019 Toyota Tundra 4x4 Crewmax Limited 5.7L.
- MSRP: $58,080.
- Manufacturer cash incentive: $4,000 (applied after tax, as compared to $2,000 in March).
- Estimated dealer discount: $1,000.
- Freight, PDI, government fees: $1,955.
- Cash purchase price before tax: $55,495.
- Finance for 60 months at 1.49-per-cent interest (as compared to 2.99 per cent in March) for $1,154 a month including tax and assumes zero down payment.
- Lease for 48 months at 1.99-per-cent interest (as compared to 2.99 per cent in March) for $893 a month including tax and assumes a 20,000 annual kilometre allowance with zero down payment.
Manufacturer incentives and pricing calculations are based on Ontario customers and subject to availability of inventory. Dealer discounts shown are estimates for illustrative purposes only, may vary by region and are given at the discretion of individual dealers. Please note that while every effort is made to ensure the information above is accurate at the time of publication, pricing, incentives and discounts are subject to change or discontinuation at any time. Vehicle images may not represent the exact model featured in the pricing provided. Consult your local dealership for details.