Which new-vehicle features hold their value?

By Jim Gorzelany

Today's cars and trucks offer a dizzying array of available features, both of a practical and gadget-oriented nature. Unfortunately it's easy to contract "option-itis" when shopping for a new model and go overboard on the amenities. While adding any particular feature to a vehicle might seem to cost relatively little when financed over a five-year period, these "little" add-ons can add up to a significant amount of money if you don't equip a vehicle wisely.

While many cars and trucks are available in "stripped down" base versions, most models you'll find on a dealer's lot are fairly well equipped. It may take some searching to find a particular vehicle that's only Spartanly outfitted, or you may have to special-order one from the factory.

So which features will add value to your vehicle and will hold their worth best over time? An automatic transmission and air conditioning traditionally bring the highest resale return of any automotive feature, but both now come standard on all but a relative handful of models. Here, you'll probably lose value if you own the odd car or truck that isn't so equipped. Ditto with other now-common items like cruise control and power locks, mirrors, and windows.

Safety features like side-impact airbags, antilock brakes, and stability control systems always hold their value and may garner cash discounts on your auto-insurance premiums. Similarly, equipping a vehicle with all-wheel-drive, where available, is usually a good investment, particularly in winter-unfriendly areas.

Performance upgrades generally enhance a vehicle's drivability, but may or may not translate into a higher resale value. Choosing a version that, say, comes with a stronger V-6 engine instead of a lackluster four-cylinder powerplant will likely provide a good return on your investment, providing the upgrade is available as a standalone option at a reasonable price. (Some models may require you to choose a higher-priced version with lots of features you might not otherwise want or need to obtain the added muscle.)

Unless you have a true need for speed, however, you may want to avoid trading up to a gas-swilling V-8 or other powerful engine that may require the use of costlier premium fuel. Not only will this translate into higher operating costs, you may lose resale value if the price of fuel rises significantly over time, as many experts predict. Owners of large V-8-equipped sport-utility vehicles saw their resale values plunge recently as gas prices rose more quickly than usual.

Beyond the basics, realize that features added to mid- and higher-priced vehicles can be expected to retain more of their value over time than those in economy models, according to Automotive Lease Guide (ALG), which tracks vehicles' resale values for leasing companies. Subsequent buyers of used low-end vehicles may not be looking for--or be willing to pay the added cost of--luxury-oriented amenities.

ALG estimates that equipping a car or truck with power seats will bring you the largest financial payback after three years. These will return between 63 and 80 percent of your initial investment of between $200 and $300, depending on the make and model. Next highest is a CD changer (typically $250-$400) at 67 to 79 percent, which is followed by alloy wheels ($350-$475) at 53 to 69 percent, leather upholstery ($800-$1,200) at 41 to 66 percent, a power moonroof ($750-$1,200) at 43 to 58 percent, and an upgraded audio system ($400-$1,150) at 30 to 56 percent of its original cost.

On the other hand, features ALG cites as having particularly low resale values are among the costliest high-tech gizmos. A satellite navigation system is expected to retain only 16 to 31 percent of its value after three years, while a rear-seat DVD video array is predicted to be worth only 20 to 25 percent of its initial cost. Either system can add as much as $2,000 to the sticker price of a new vehicle, and may wind up being outdated by newer technology before you make your final car payment. What's more, you can almost always save money on such items by purchasing so-called aftermarket alternatives instead at an electronics or department store. For example, you can obtain a portable navigation system for a few hundred dollars, while a personal DVD player can cost $150 or less (they can also be locked in the trunk or taken with you when not being used for added security).

Finally, keep in mind that power-operated and electronic options can prove to be problematic in the long term, are costly to fix, and will likely detract from a car or truck's resale value if they're not in working order. Simpler is better in most cases, and if you're cost-conscious you shouldn't load up a vehicle with devices for which you have no particular need, just because you've succumbed to "option-itis."

 
Read More Tips and Facts