Analysts Project Value Shifts for Models Being Discontinued This Year

As both domestic and import OEMs together bid farewell to 10 vehicles this year — taking them out of their production lineup — many are left wondering how this will effect these particular models’ values.
With this in mind, Kelley Blue Book released the list of “10 Cars Waving Goodbye in 2012” as well as its take on how the used vehicles’ values will fare in the future.
The list includes units ranging from luxury gas sipper, the 2012 Lexus HS Hybrid, to the rugged 2012 Chevrolet Colorado. And in analyzing the potential effects discontinuation might have on these particular models, KBB editors noted changes in value may run the gamut, as well.
More specifically, Kbb’s list of “10 Cars Waving Goodbye in 2012” is as follows:
2012 Dodge Caliber
2012 Kia Sedona
2012 Mitsubishi Eclipse
2012 Mitsubishi Galant
2012 Mazda CX-7
2012 Lexus HS Hybrid
2012 Mercedes-Benz R-Class
2012 Hyundai Veracruz
2012 GMC Canyon
2012 Chevrolet Colorado
So what does KBB see as the potential impact on vehicle values within this list of models? When analyzing the potential effect the discontinuations will have on these units, editors first focused on a few units that are unusually low-priced in their classes.
First, they noted the Dodge Caliber, Kia Sedona and Mitsubishi Galant already are “significantly more affordable” than similar vehicles in their segment, and the company noted they are expected to continue to “underperform” as time goes on.
"The Caliber and Galant are two models overdue for discontinuation, and with previous model years 10 percent more affordable than their closest competitors," said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book.
"We expect this discount to increase one or two percent each year as they age,” he added.
On a similar note, KBB does not expect a significant drop in value for the Kia Sedona as it also is considerably less expensive than its segment counterparts.
For example, KBB editors noted a 2010 Sedona is nearly $5,000 less pricey than a comparable Toyota Sienna or Honda Odyssey.
Moreover, the used versions of the Mercedes-Benz R-Class and Hyundai Veracruz sit are also far more affordable than similar vehicles in their respective segments. These units are not expected to drop much in value when discontinued, according to KBB.
“Values will likely remain firm since these vehicles could present buying opportunities for consumers seeking a good deal in the full-size and luxury crossover categories,” officials added.
And as for owners of the HS, Mazda CX-7 or Chevrolet Colorado or GMC Canyon, they also likely will see little impact to their vehicle value.
Delving into why one particular model was picked off, KBB noted the CX-7 was only discontinued to make room for the smaller CX-5 “and had it not been for the introduction of its compact sibling, the CX-7 would have continued as a consumer favorite.”
Due to this consumer interest, CX-7 is expected to maintain a strong following with strong values in the future.
Gutierrez noted the Lexus gas sipper being discontinued will also likely retain its customer base: "The Lexus HS never hit the volume targets Lexus needed to keep the vehicle in production; however, it will likely maintain a niche following for consumers seeking affordable green luxury."
"The Chevy Colorado or GMC Canyon faithful have nothing to fear in terms of unexpected depreciation once production ends. With the Ford Ranger also ceasing production late last year, consumers seeking rugged, dependable, yet affordable small pickups will have fewer options keeping trade-in and resale values strong,” he continued, wrapping up the list.