Resale values for Detroit makers' vehicles go up

0 Comments | USA TODAY, November, 2007 | by Chris Woodyard

LOS ANGELES -- After big cuts in how many vehicles they're building, the three Detroit automakers are starting to see increases in estimates of how much their new models will be worth as used cars.

Those increases are important to buyers. Buyers are willing to pay more for a new car if they believe it will have retained more of its value when it comes time to trade it in or resell it in three or five years.

Strong resale values also help lower the cost of auto leases. If an automaker knows a car will be worth more when it's traded in after the lease expires, it can offer a lower monthly rate.

Ford Motor, along with Japanese automaker Nissan, shows particularly strong growth in estimated three-year residual values of 2008 models, Jairam Nathan, a...