Monday, 23 July 2007
Diesel engines worth the investment, according to Automotive News
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Choosing and paying for options when purchasing a new vehicle can be a formidable task. Which ones are needed, and which will payoff during resale time? As The View from Inside has reported previously, certain items such as navigation systems do not hold their value well.
According to Automotive News, however, diesel engines have been a good investment over the last couple years. Several diesel vehicles are now commanding premiums in the used marketplace higher than the additional fees attached to the original MSRPs. For example, a 2005 Mercedes-Benz E-Class (E320 CDI) cost approximately $1,000 more than a comparable gasoline E320 when new. Now, ’05 E320 CDI Benzes are commanding about $2,500 more than 2005 E320s at wholesale auctions. That’s an increase of 250 percent on an unadjusted basis, and even more considering that vehicles inherently lose value after two years but the diesel option has increased in worth.
Others are performing above their MSRP premiums as well. When considering 2005 models, Automotive News found five other diesel vehicles commanding more dollars today for the powerplant option than when new. Volkswagen’s Jetta GLS TDI has retained 164 percent of its diesel premium, while the New Beetle GLS TDI has held 121 percent. Both have benefited from VW removing diesels from the 2007 lineup due to emissions compliance, and thus making the TDI selection scarce.
Large trucks have also fared well, as the diesel option is returning more than 100 percent in the Ford F-250 (127 percent), Chevy Silverado (117 percent) and Dodge Ram 2500 (104 percent). Finally, the Jeep Liberty diesel is not far beyond, with oil-burning models selling for $2,200 over gasoline Libertys, representing an 82-percent share of the original Liberty CRD markup.
Source: Automotive News
Image: DaimlerChrysler media
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