What You Need to Know About Vans and Resale Values

Most families don't have the cash in the bank to simply buy a minivan outright — and a minivan is the ultimate family vehicle. That's why banks invented financing and leasing.

But whether you buy, finance or lease, the ultimate cost of a minivan will depend on how much the vehicle depreciates during the time you drive it. The more value it retains, the more you'll get for it when it's time to sell. If you lease, you only pay for the amount the vehicle depreciates, so a higher residual translates into a lower payment.

Automotive Lease Guide, the primary service used by dealers and auto finance companies to forecast residual values for leases, bases its predictions on wholesale prices at hundreds of auctions across the country and adjusts them for new or redesigned models based on past experience.

If you're not considering one of the above models that have high residual values according to ALG, here are a few general guidelines from Mark Brueggemann, senior editor of Kelley Blue Book, to help gauge what features and models will return the highest residual values.

• As with other vehicle categories, brand names make the biggest difference. Hondas and Toyotas hold their value best, followed by the Chrysler Town & Country and Japanese vans from Mazda and Nissan. General Motors' minivans range widely according to brand name and corresponding amenities.
  
  
• The corollary to the first rule is that minivan buyers like amenities. Because a significant number of minivan buyers are empty nesters and retirees, loaded models tend to sell quickly, which helps their residual values.
  
  
• But on an individual basis, expensive options tend not to pay back their original option prices. This includes navigation systems, leather interiors and the segment's rare sunroofs. Families perceive fancy luxuries as incompatible with hauling kids around, a primary minivan function. They worry leather interiors may get ruined, for example. The residual value of navigation systems, though, is rising.
  
  
• A few exceptions are rear DVD entertainment systems, separate rear air conditioning systems and rear privacy glass, which have become must-have features in the class. If you try to sell a van without one of these features, it can be hard to find buyers.
  
  

With Stow 'n Go seating, the second- and third-row seats in the Chrysler Town & Country fold into the floor.

• One of the most important elements after brand name is a folding rear seat — and the more that fold into the floor the better. Second-row hideaway seats are available so far only in Chrysler, Dodge and Nissan vans, but used-car buyers expect foldaway third-row seats.
  
  
  
• Power doors and tailgates add to residual values during the first two years, then drop off rapidly and hurt residual values in vans older than 4 years old. Buyers of these older vans are suspicious of fussy, unnecessary systems that could be expensive to fix.
  
  
• All-wheel drive, an option in a couple of models, doesn't pay back its added cost but can get close in mountainous regions and northern climes.
  
  
• Short-wheelbase minivans such as the Dodge Caravan (as opposed to the Grand Caravan) generally perform very poorly compared with their long-wheelbase counterparts because families want as much room as possible. The equally small Mazda MPV, however, places fifth in our list because the brand name and reputation of the MPV makes up for its short length. For families with only two children, such vans have enough space for daily use.
  
  
• Full-size vans have become almost synonymous with commercial use, and different market forces govern their residual values. A small number of these vans are used in the private sector, and almost all are conversion vans modified by aftermarket companies. (Conversion van features, performance and reputations vary and are not tracked by cars.com, so their residual values were not considered.)

Overall, minivan sales have been hurt by the emergence of quasi-sport utility vehicle crossovers like the Chrysler Pacifica, Brueggemann says, and that applies in the used- and new-car markets. In fact, such crossovers perform better than all other types of vehicles by class, says Matt Walker, editor of ALG. That's because they're so new to the market that relatively few are available as used vehicles for the many buyers who want them. For now, some of those buyers may turn to minivans, propping up their residual values for a few years until more of today's redesigned minivans from Chrysler, Honda and Toyota become available on the used-car market.