Honda has built up a reputation for affordability and value, but is it one that the 2016 Ford Fiesta residual value can challenge? Ford has been working hard to improve the Fiesta, and we put the hatchback version of their subcompact up against the 2016 Honda Fit to see which one has the better residual value and might offer a superior investment for Albany area drivers.
If you aren’t sure what residual value is or why it matters, we’ve got a quick overview for you before we compare the stats.
What Is Residual Value?
The residual value of a car is the percentage of its initial purchase price that it is worth after a given time. If you drove home a car and it actually fell to half its price after leaving the lot, it would have a 50% residual value once you arrived home.
While nobody can predict the future for certain, groups like ALG and Kelley Blue Book are very good at giving estimates for future residual value. They are based on the history of the vehicle and the brand, the current demand of the auto market, fuel economy, and other features. It’s these residual value estimates that make great tools for a new car buyer. It’s almost like being able to look into the future.
How Does the Fiesta Stack Up?
Now that we have an idea about residual value, how do the numbers compare?
- The 2016 Fiesta S Hatchback residual value numbers come in at 43% at 36 months and drop all the way down to 30% at 60 months.
- Honda’s 2016 Fit LX with CVT, however, has an ALG residual value of 59% at 36 months and 44% at 60 months.
It can be tough to explain exactly what it is that gives the Fit such a large advantage—to be fair, much of that advantage comes from the Fit being one of the best-equipped and most fuel-efficient subcompact hatchbacks on the road and has little to do with the Fiesta.
We want to show you all the advantages of the 2016 Honda Fit beyond besting the 2016 Ford Fiesta residual value. Visit a Capital Region Honda Dealer near you today for a test drive.
Capital Region Honda Dealers includes Lia Honda, Keeler Honda, Mohawk Honda, Carbone Honda of Bennington, D’Ella Honda of Glens Falls, Rensselaer Honda, Bedard Bros. Honda, and Saratoga Honda.