Most Expensive Cars to Insure

High-priced cars aren't just expensive to buy — they can cost a lot to protect, as well.

The more expensive the car, the more it costs to insure. But just how expensive may come as a shock. For modest coverage ($500 deductibles on collision and comprehensive coverage, $100,000 each for personal and property coverage, and $25,000 each for medical and uninsured coverage) on this year's $135,400 Mercedes SL, owners will pay about $22,536 a year.

For pricey cars like this, yearly insurance costing 20 percent of the base price is typical. But for those with low monthly payments on high-end cars, that could mean spending more on insurance than on the car itself.

"The cost of the vehicle is primary when setting the price of a policy," says David Wurster, president of Vincentric, a Detroit-based automotive data firm that studies car insurance costs. Vincentric gets its data from state agencies and averages these figures in compiling its list of most expensive yearly rates. "But there's also the type of vehicle it is. Sports car owners tend to drive them a little more aggressively."

This, in turn, leads to higher-priced policies. With this in mind, it's no surprise that racy offerings from Mercedes-Benz, BMW and Porsche make for some of the most expensive cars to insure.

How It Works
"We start with the manufacturer's suggested retail price," says Kip Diggs, a spokesman for State Farm, the largest insurer of autos in the U.S. Diggs says State Farm then considers how expensive it is to repair each model. The more costly the parts, the higher the policy. For foreign brands with parts from afar, expect to pay more. "From there," Diggs says, "we look at safety features to see if a vehicle qualifies for a safety discount."

Allstate, the second-largest U.S. car insurer, also considers the price, but places more weight on a policyholder's driving record.

"Pricing has more to do with the driver than the car," says spokesman Raleigh Floyd. "If there are two drivers with the same car, the driver with accident histories will have a higher rate. He's shown himself to be a higher risk." Those with a penchant for wrecking Ferrari Enzos on California's Highway 1, for example, can expect to pay more.

Age is also a factor. "A 17-year-old driver is going to be more expensive to insure than a 40-year-old with a family," says Floyd. "Experience counts. It counts a lot."

There are some anomalies in the ranking.
"You would think a Corvette Convertible would be hideously expensive to insure," says State Farm's Diggs. "But that car is involved in very few accidents, so it's fairly low." This is because research shows Corvettes typically aren't driven every day.

More utilitarian models like the Toyota Camry can be more expensive to insure because, with more road time, they are more likely to be involved in an accident. Vincentric doesn't collect data on exotics like Ferraris and Lamborghinis because, says Wurster, there are too few owners to make the data useful.

Policy pricing also has to do with where a car is garaged, with urban areas considered higher-risk. "In a more concentrated area, your chances of bumping into something are higher," says Floyd. "Jersey's going to be on one end of the spectrum, and a less populous state is going to be on the exact opposite."

But if you have a hundred grand to spend on a car, you're probably not worrying about insurance.

"For people of that caliber," says a salesman at Mercedes-Benz Manhattan, "the cost of insurance really isn't an issue."

1. Mercedes SL Class and S Class
SL Class (pictured)
MSRP: $135,400
Insurance: $22,536

S Class
MSRP: $123,888
Insurance: $21,161

The convertible SL is Mercedes' most expensive production offering. A two-door roadster built for speed, the SL features a 5.5 liter V8 engine. The retractable hardtop roof is classier than its canvas counterparts, and the trunk is surprisingly spacious. The S Class sedans, while no less luxurious (and only slightly less expensive), aren't quite as sporty. But with the Benz logo front and center, they're not cheap to insure.

2. Mercedes CL Class
MSRP: $122,050
Insurance: $20,942

Who said coupes were small? Mercedes' CL is based on the stately S Class sedans, but sports only two doors for a sleeker profile. Zero to 60 in 5.4 seconds will get you to the office in time, but it comes at a price. With a monster V8 engine, the federal gas-guzzler tax applies. And then there's the insurance.

3. BMW Alpina B7
MSRP: $115,000
Insurance: $20,100

Good luck getting your hands on an Alpina B7. BMW is only selling 200 in the U.S. A souped-up version of the 7-series full-size sedan, the Alpina features bigger wheels, better suspension and an advanced stabilization system. All of this makes going fast a bit safer. But speed comes at a price.



4.BMW M5 and M6
M6 (pictured)
MSRP: $102,000
Insurance: $18,548

M5
MSRP: $82,500
Insurance: $16,220

The M Series cars are meant to go fast, and for insurers, speed is dangerous. The flagship M6 hardtop coupe is arguably the fiercest-looking BMW to roll off the production line, and inarguably one of the priciest. Both the M6 and the more practical M5 sedan have roaring V10 engines.

5. Mercedes G Class
MSRP: $95,600
Insurance: $17,784

The G Class is a boxy, military style SUV from Mercedes. Indeed, it was originally designed for the battlefield. But don't let the lack of finesse fool you--today the G Class is all luxe. The door handles are wrapped in leather, and a DVD-based navigation system keeps drivers on target.



6. Audi S8 and A8
S8 (pictured)
MSRP: $92,200
Insurance: $17,353

A8
MSRP: $92,000
Insurance: $17,353

The A8 and its fancier cousin, the S8, are the best Audi has to offer, and they're not half bad. The V10 in the S8 make this sedan faster than the Porsche 911 Carrera in a zero-to-60 sprint. And with enormous cast-aluminum tires concealing oversize brake discs, even speed demons can stop on a dime.

7. Cadillac XLR
MSRP: $87,898
Insurance: $16,973

The only American entry on the list, Cadillac's XLR is a serious roadster meant to rival its European competitors. The V8 is plenty strong to pull the light aluminum chassis, and the interior is posh--trimmed with eucalyptus. A retractable hardtop makes the XLR a speedy option in any weather, and there's also an exclusivity factor: GM is planning to sell only 1,000 a year.

8. Porsche 911
MSRP: $91,208
Insurance: $16,955

The fundamentals of Porsche's 911 have hardly changed over the years, and with good reason: Its teardrop shape keeps it aerodynamic and recognizable, and its hardware keeps it among the fastest cars in the game. Today's iteration comes equipped with Porsche's Active Suspension Management system, which adapts the suspension to match road conditions and driving styles.

9. Jaguar XK
MSRP: $83,335
Insurance: $16,154

The XK, in coupe or convertible, is a brand-new offering from the storied Jaguar brand. Designed to recall the XKE of the 1960s, today's XK appears perhaps a bit too similar to its countryman, the Aston Martin. That doesn't stop it from performing. The V8 propels a relatively light frame with ease, and this two-seater is the most teched-out Jag ever built, with a computer adjusting it to Comfort or Sport modes.

10. Land Rover Range Rover
MSRP: $84,285
Insurance: $16,042

One of only two SUVs on the list, the Range Rover is capable of climbing mountains, but more at home in the city. Four-wheel drive and a supercharged V8 make this among the most powerful production vehicles on the market, while options like Sirius satellite radio and a rear-seat DVD system ensure creature comforts are never far off.
(C)Forbes

Do Car Dealers Favor Drop-Ins?

Customers without appointments are more pleased with their dealership service experience than those who plan ahead. The good news is, car quality is increasing industry-wide.

Customers who simply drop into a dealer for servicing a vehicle are generally more satisfied with their experience than those who make an appointment ahead of time, according to J.D. Power and Associates’ 2007 Customer Service Index (CSI). The annual study also found that owners are reporting fewer repairs, which means car quality on the whole is improving.

J.D. Power’s CSI gauges the satisfaction of customers who have brought their car into service departments during the first three years of ownership. Overall satisfaction is based on six factors: service initiation, service adviser, in-dealership experience, service delivery, service quality and user-friendly service.

Of the more than 84,000 respondents to the survey, over three-quarters report making an appointment with their dealership for repair or maintenance on their vehicle. But they’re not the ones who seem to be the happiest. Owners who drop in for vehicle service had satisfaction scores averaging 882 out of a possible 1,000 points, while those with scheduled appointments averaged 874 points.

“It may be a case where somebody who just dropped in — and for some of those people it may be an emergency situation where suddenly their car broke down — the dealer was able to take care of them and they are overjoyed,” said Tom Gauer, senior director of automotive retail research at J.D. Power.

But there’s a flip side to this. If the owners who come in off the street are getting the same treatment as those who made appointments in advance, the customers with appointments are going to report a less satisfying experience, hence skewing the numbers even further.

“When you go into the service drive of many dealers in the morning, which is when they’re busiest, often there’s no difference in the way people are handled in terms of whether they made an appointment or not,” Gauer said. “And so those that made an appointment that are stuck waiting in a line for 10 or 15 minutes to drop their car off wonder, ‘What was the point of making an appointment?’ It’s a frustration for those who do make an appointment that causes a little bit lower satisfaction on their part,” he said.

Some dealers do show higher levels of service to customers with appointments. Gauer cites a personal anecdote of a dealer he used to go to that would put an orange cone on the roof of cars whose owners made appointments and a white cone on top of cars whose owners didn’t make appointments. The cars with orange cones had three or four service advisers working on them, while those with white cones got only one adviser. “It’s something that varies at individual dealers,” Gauer said.

Maintenance Versus Repairs
More customers visit dealerships for maintenance than repairs, which J.D. Power interprets as a sign of the automotive industry’s continuing improvements in product quality. The percentage of maintenance visits increased by four points to 62 percent from last year; 38 percent of visits were for repairs, according to J.D. Power data.

“Overall in the industry, the quality of vehicles continues to get better and better,” said Gauer. “The incidence of product problems continues to drop, and the incidence of people bringing vehicles in for just maintenance is on the increase.”

J.D. Power’s CSI also ranks specific brands by customer service satisfaction, and Jaguar came in at No. 1, with 925 points out of a possible 1,000. In 2006, Jaguar was 4th on the list, with a score of 908. It also topped J.D. Power’s 2006 Sales Satisfaction Index rankings, which looks at the ability of a brand’s dealerships to manage the sales process, from product presentation to negotiation, financing and delivery.

“Jaguar has typically been a fairly strong performer,” Gauer said. “I think in 2003 they were ranked 11th in CSI in the industry. They moved up to 8th in 2004, up to 6th in 2005. So it’s not a matter of a sudden remarkable performance. They have the tendency of doing a very good job of being focused on the customer and taking care of the customer’s individual needs.”

It’s a good thing, because Jaguars need more repairs than the average luxury vehicle. J.D. Power reports Jaguar’s incidence of repair to be at 48 percent, versus the luxury-vehicle average of 41 percent. Basically what this means is that of the survey respondents, 48 percent of Jaguar owners reported needing a repair in their most recent visit, versus 41 percent in the overall luxury segment. But with regard to service, “they end up scoring a full 37 points higher than the premium average on the overall repair index,” Gauer said.

The J.D. Power and Associates CSI Study is based on responses gathered between January and April 2007 from 84,495 owners and lessees of 2004 to 2006 model year vehicles.
(C)Forbes

Most Affordable Luxury Cars

Entry-level luxury cars offer most of the bells and whistles of higher-end models, but at a reasonable price.

Preparing to plunk down $61,715 on a brand-new Lexus LS 460? Save your money. Instead, buy a $30,000 IS 250. Toss in another $5,000 worth of options, and you get the prestige of the Lexus plus many of the same bells and whistles, including heated and ventilated front seats, bi-xenon headlights and an optional sound system that includes a DVD player.

Call it the trickle-down theory of economics for cars. For a fraction of the price of their more expensive counterparts, entry-level models are getting top-of-the-line features.

Consider the 2008 Cadillac CTS. It allows customers (with some options) to play music off an iPod, a memory stick, a CD, satellite radio or terrestrial radio. It even allows the customer to pause and rewind live radio broadcasts.

The $32,500 (estimated) car, which goes on sale in August, also boasts an innovative "infotainment" system that uses several digital formats. Besides music, the dashboard system can play DVD movies when parked. The optional navigation system runs off the car’s hard drive, as opposed to a removable DVD or CD-ROM. As technology improves, customers will someday be able to download updates wirelessly.

It makes sense that starter luxury cars are increasingly being outfitted with top-of-the-line features, says George Peterson, president of Tustin, Calif.-based auto industry consulting firm AutoPacific.

"Entry-level luxury cars need to demonstrate the capability of their brand — just as the more premium entries do," he says. "As more and more has been added at the top of the pile... these features become expected as part of the standard [or typical] feature load of even the lowest level luxury-brand vehicle."

Examples for the mechanically inclined include: six-speed manual transmissions or automatic transmissions with up to seven speeds that you can shift manually if you want.

To get more than four automatic gears or to shift your automatic manually, you used to have to buy a Porsche with a Tiptronic transmission, or a six-speed BMW, or even a Ferrari, with Formula One racing-style "paddle" shifters mounted on the steering wheel.

Technical Touches

But as much as transmissions have improved, nothing is trickling down faster in this digital age than electronic gizmos, especially car stereos, and new-and-improved navigation systems.

It takes three to five years for automakers to make substantial changes to the car itself, but the lifecycle for electronics gear can be six months long, says J. Ferron, automotive partner at PricewaterhouseCoopers in Detroit.

"So there's an eight times shorter cycle [for electronics]," Ferron says. "There’s a collision between that and what’s shaped in the marketplace in terms of customer expectations versus what a car can do."

Some of the vehicles on this list can have 10 or more audio speakers, as much wattage as an in-home system, half a dozen ways to download and swap music between formats, plus many different ways to control it — buttons on the dash, buttons on the customer's MP3 device, buttons on the steering wheel or even voice control.

Sounds great, but keep in mind that "entry level" is a relative thing. The most expensive car on our list is the redesigned 2008 Porsche Cayenne, at $44,295 (including required $895 delivery). That’s not cheap, but it's the least-expensive Porsche. All the cars (and two trucks) here are the least-expensive new models offered by their respective luxury brands. Since it’s nearly fall, most are already 2008 models, but a few are 2007s, pending model year changeover.

The least expensive overall is the little Volvo C30, an all-new 2008 model, at $23,395 (also including delivery). Even so, it comes standard with a six-speed manual transmission, a feature that once was found only on high-end BMWs.

"These entries today need to be fully featured and are," says Peterson. "They need to support their brand identity and mostly do."

Audi A3 2.0T
Starts at $25,340

The 2007 A3 has several features that once were found exclusively on more expensive cars, like a six-speed manual transmission; an optional six-speed automatic, which can be shifted manually; and electronic brake-force distribution to reduce skids. Thanks to turbocharging, the A3's standard four-cylinder engine produces 200 horsepower. Optional upgrades include a more powerful six-cylinder engine with Audi Quattro all-wheel drive.

BMW 328i
Starts at $33,175

The least-expensive BMW--until the 1 Series lands next year--the 2007 328i has a 230-hp, six-cylinder engine. A six-speed manual transmission is standard. The optional six-speed automatic has a "Steptronic" mode, for manual gear selection without a clutch. High-tech brakes include Brake Standby, which almost but not quite applies the brakes when the driver suddenly lifts off the accelerator pedal, anticipating hard braking.

Cadillac CTS
Starts at $32,500 (estimated)

Sales of the 2008 model start in September.

The 2008 CTS, with a 304-hp, 3.6-liter V-6 engine, is a redesigned model. Its innovative "infotainment" system uses several digital formats. Besides music, the dashboard system can play DVD movies when parked. The optional navigation system runs off the car's hard drive, as opposed to a removable DVD or CD-ROMs. As technology improves, customers will someday be able to download updates wirelessly.

Infiniti G37
Starts at $32,000 (estimated)

Sales of the 2008 model start in August.

The G37 Coupe, with a 330-hp V-6 engine, replaces the 2007 G35. Optional features include advanced four-wheel active steering, where the rear wheels help steer the car. Like the Cadillac CTS, the optional navigation system shows "3-D" landmark buildings. And like some more expensive cars, the G37 has optional "intelligent cruise control," which, within limits, maintains a set distance to the vehicle ahead.

Jaguar X-Type 3.0
Starts at $34,995

X-Type sales are down more than 40% year to date through May, but the entry-level 2008 model Jag has its fans. The X-Type has standard all-wheel drive, which is unusual but "trickling down" among luxury cars. Other upscale features include electronic brake force distribution to prevent skids, wood trim and a 120-watt sound system.


Land Rover LR2
Starts at $34,700

The smallest Land Rover is an all-new 2008 model, with a 230-hp, 3.2-liter V-6 engine. Like its bigger siblings, it can "wade" across streams up to about 20 inches deep. Its six-speed automatic transmission has different settings for different slippery conditions. The LR2 isn't exactly roughing it, however: It has a nine-speaker, 320-watt audio system with an MP3 plug-in.

Lexus IS 250
Starts at $30,970

The 2007 Lexus IS 250 has a once-rare six-speed manual transmission, plus a 204-hp, 2.5-liter V-6 engine. An optional luxury package includes features that were scarce a few years ago, like heated and ventilated front seats; bi-xenon headlights; adaptive headlights, which redirect the beam of light around a corner for better visibility. An optional sound system includes DVD-audio and DVD-video playback.

Lincoln MKZ
Starts at $29,305

The 2008 MKZ on sale now has a powerful, 263-hp V-6 engine and a size advantage over some of its entry-level competitors. Options include a thumping 600-watt, 14-speaker audio system.




Mercedes-Benz C300
Starts at $31,975

2008 model goes on sale August 7.

The 2008 C300 Sport Sedan, the first all-new C-Class since 2000, has a 228-hp, six-cylinder engine. (There is also a slightly pricier "Luxury" variant.) Features from the flagship S-Class include a computer hard drive for the optional navigation system. "Selective damping" debuts first on the C-Class. It automatically provides a stiffer ride in sporty driving and a softer, smoother ride for highway cruising.

Porsche Cayenne
Starts at $44,295

The 2008 Cayenne, on sale now, is a new generation of the Porsche SUV. The priciest vehicle on our list is the third most powerful (after the Cadillac CTS and Infiniti G37), with a 290-hp, 3.6-liter V-6 engine. It goes from zero to 60 mph in 7.5 seconds, one second faster than the old Cayenne. Bi-xenon headlights are standard.


Saab 9-3
Starts at $26,995

The Saab 9-3 2.0T Sport Sedan has a 210-hp, turbocharged, 2.0-liter four-cylinder engine.

A six-speed manual transmission is standard. A five-speed automatic with manual shifting capability is optional. A 150-watt, seven-speaker audio system is standard. A nine-speaker Bose system is optional. Like most luxury cars, even entry-level ones, anti-lock brakes, traction control and stability control are standard.

Volvo C30
Starts at $23,395

Even the cheapest of our entry-level luxury cars has a six-speed manual transmission standard. Volvo calls the base model "Version 1.0." The upgraded model is "Version 2.0." A five-speed automatic with manual-shifting capability is optional. A turbocharged, five-cylinder engine previously shared with some of the bigger, more expensive models produces 227 hp. A glass hatchback is probably the single most distinguishing feature.
(C)Forbes

2007 Hyundai Azera Test Drive

If you can do without a few frills, Hyundai's Azera rides with some heady competition in the near-luxury segment, but at a much lower price.
MSRP: $24,235 - $27,335

Hyundai’s Azera is a midsize, entry-level luxury sedan that replaced the XG350 when it debuted for 2006. It is, in so many ways, light years ahead of that model, which itself seemed to be at least a generation or more behind its Japanese rivals in terms of performance, styling and accommodations. The question, however, is whether the Azera, no matter the improvements over the car it replaces, qualifies as a true competitor to luxury vehicles like the Lexus ES 350, or whether it’s merely Hyundai’s slightly dressier version of cars like the Honda Accord, Toyota Camry or, for that matter, Hyundai’s own Sonata. We’ll take the middle ground and call it a reasonable, and in some ways superior, alternative to models like the Buick LaCrosse or Toyota Avalon.

The Hyundai Azera costs a couple of thousand dollars less than an Avalon, and a lot less than a Lexus ES 350. It’s well equipped with only a handful of options available, but offers nothing in the way of the “gee-whiz” electronics that tend to define the latest luxury vehicles. This helps keep the cost down, but it tends to limit its appeal among gadget freaks that seek status in extolling the virtues of features like adaptive headlamps, “smart key” systems and laser-guided cruise control to their country-club acquaintances.

The car carries over from its inaugural 2006 model year with only minor changes that include new backlit electroluminescent instrumentation of the sort that Lexus has employed since the original LS 400. An engine immobilizer security feature is now included to help shave a few dollars off the car’s insurance premiums for comprehensive coverage, and the side mirrors incorporate turn-signal indicators, a feature that is both practical but also a bit of a conceit, in that luxury cars like Mercedes-Benzes typically have such indicators in their side mirrors.

As with all other Hyundais, the Azera is covered by a warranty that puts most, if not all, of the luxury makes to shame. This includes a five-year/60,000-mile bumper-to-bumper protection that pretty much takes care of everything, save for maintenance and normal wear-and-tear; 10-year/100,000-mile powertrain coverage for major components; and five-year/unlimited mileage roadside assistance, which is essentially a free auto-club subscription for towing and other perks.

As General Motors has discovered, selling cars with a generous warranty is a great way to attract buyers who might otherwise eschew a particular brand for fear of reliability issues. While we have not heard any widespread complaints about the longevity of recent Hyundai models, and their initial build quality is eclipsing that of older brands, according to J.D. Power and Associates’ Initial Quality Study, we’d look at the warranty as a no-cost service contract, which would otherwise cost several thousand dollars if sold by a dealer’s finance and insurance department.

Exterior
Overall, the Hyundai Azera is a handsomely styled, though not particularly flashy, automobile. With the logos covered up, few casual onlookers would likely identify it as a Hyundai, and some might even mistake it for a Lexus or Infiniti. It lacks the overt visual personality of, say, a Jaguar S-Type or Mercedes-Benz CLS-Class, but it’s in no way unattractive.

A wide front grille is flanked by horizontal halogen projector-beam headlamps, and the front fenders flow cleanly to the rear of the vehicle without much in the way of clutter or adornment. Its roofline stays high until curving sharply downward just before the rearward edge of the back door. A higher and more horizontal roofline may not look as sleek as many competing sedans that follow the trend toward swoopy looks, but it does keep taller occupants from bumping their heads when getting in and out of the backseat. A prominent “Azera” logo in chrome between the taillamps is perhaps a bit too brash for what is otherwise a subtlety styled car.

The Limited version of the Hyundai Azera tends to look a bit dressier than the SE, given its larger and fancier 17-inch, 10-spoke aluminum alloy wheels, which are not available as a factory option on the base car.

As is the case with most upscale models, the Azera’s exterior colors tend to be on the sedate side, with silver, beige, green, light blue and gray being the dominant hues. The silver model we drove nonetheless had an attractive and well-executed paint finish.

Interior
If the Hyundai Azera’s outward appearance suggests it’s from one of the upscale Asian brands, the sedan’s interior literally shouts the inference. Its attractive design is straight out of the Lexus sketchbook, and it’s well finished with quality materials used throughout the roomy cabin.

The seats — our test vehicle’s were finished in leather — are supportive and offer sufficient comfort, even over longer treks. Eight-way power adjustments are standard for the driver; the front passenger gets four-way adjustments. It may take some time to find one’s “sweet spot,” as is often the case with multiple-choice cushions, but posterior nirvana is generally obtainable for even those of larger build.

Unfortunately, memory settings for the seats are only offered as part of the $2,550 Limited Ultimate Package on the top model. Heated front seats are standard on the Limited and are optional with the base car in the $1,800 SE Premium Package.

The rear seat offers sufficient room for two six-footers, with a third, albeit shorter, occupant able to fit between them as the need arises. Entry and exit to and from the rear seat is generally good. The rear seat folds flat in 60/40-split sections to maximize cargo-carrying abilities. The fold-down rear seat backs are mainly useful for toting longer objects, as opposed to big, bulky ones like televisions or desks; you’ll want a hatchback or SUV for those items.

A leather-wrapped tilting and telescoping steering wheel with integrated audio-system controls is standard; adjustable brake and accelerator pedals, a boon to motorists shorter or taller than the norm, are only available on the Limited model as part of the Ultimate Package.

The Hyundai Azera’s dashboard is attractive and controls are well laid out. It can be finished in beige, black or gray; choose either of the latter two treatments to avoid distracting reflections on the inside of the windshield on sunny days. While a GPS navigation system remains unavailable, one of the unintended bonuses is that the center stack of audio, climate-control and other switchgear is uncomplicated and intuitive to operate, without the necessity for a touch screen or confusing integrated multimedia controls you’ll find on many other upscale models. (Besides, you can always purchase an inexpensive portable navigation device for journeys into unfamiliar areas.) All buttons and switches are well identified and large enough to operate while wearing gloves.

The Azera SE comes adequately equipped with an AM/FM/CD stereo that can play MP3 files on discs, automatic air-conditioning and the usual power accessories. The Limited adds wood trim and a power rear sunshade. Front, front side and head-curtain airbags are included across the line, as are “active” head restraints designed to mitigate whiplash injuries in rear-end collisions.

A power sunroof and a CD changer are available on both versions, while a power tilt/telescoping steering wheel, rain-sensing wipers, power folding outside mirrors and the adjustable pedals with memory setting are only offered through the Limited Ultimate Package.

Performance
The Azera’s all-aluminum 3.8-liter V6 engine operates smoothly and quietly, and it employs the latest technology like variable valve timing to generate a more-than-adequate 263 hp. The engine provides more muscle than many midsize sedans in the same price range and is only slightly less powerful and a bit courser in operation than the Lexus ES 350’s 275-hp V6.

A five-speed automatic is the only available transmission, and it performs admirably. It affords manual gear selection for added control while careening through twisty curves or for dropping a gear as you hit a highway on-ramp.

At an estimated 17 mpg city/26 mpg highway, the Azera is neither an economy car nor a gas guzzler. Depending on how you drive, you can expect those figures to be off by a few miles per gallon in real-world use, but not prohibitively so.

While the Azera is certainly no sport sedan, it behaves admirably in most respects, with ample comfort and relatively neutral front-drive handling characteristics. Front-drive vehicles have most of their weight over the front wheels, and so they don’t generally feel as nimble as many rear-wheel-drive cars.

We found the Hyundai Azera to be pleasant in our urban and highway jaunts alike. Its suspension is tuned on the soft side, but the car doesn’t wallow over bumps and pavement imperfections. The car’s speed-sensitive power steering applies more assistance at lower velocities to make parking and garage maneuvers easier, but it tightens up on the highway when a more-solid feel and higher steering effort are advantageous. The car’s turning radius is reasonably tight, so it requires little effort to parallel park, though unlike other models in its class, neither rear proximity warnings nor a backup camera are available to make the chore that much easier.

The larger 17-inch wheels and all-season tires on the Limited (the SE comes with 16-inch rims and rubber) help improve the car’s ride and handling a bit, but not dramatically so. Four-wheel disc antilock brakes with electronic brake-force distribution are standard and help bring the car to a stop with reasonable authority and control. The Hyundai Azera does not have a brake assist function found on many luxury cars; this feature brings an added margin of safety in panic-stop situations by applying maximum braking force when a panic stop is detected.

Stability and traction control systems are included to help mitigate wheel slippage and prevent a loss of control in extreme handling situations and/or slippery surfaces. Both systems work well, though (as in most vehicles) you’ll want to switch the traction control off when attempting low-speed maneuvers, especially parking, in measurable snow when a certain amount of wheel slippage is otherwise unavoidable.

All in all, we think that the Hyundai Azera is a solid value and one worth considering for those who don’t care about brand clout or having the latest high-tech gizmos. Its amenities, quality and performance are at least equal to those of competing models in its price range and even stand up well to more-expensive models. Just bear in mind that if you like sporty driving dynamics, this probably isn’t the car for you.
(C)Forbes

Top 10 Off-Road Luxury SUVs

Ironically, some of the most luxurious and expensive SUVs are the best equipped for dirty off-road duty — not that most drivers will ever test these capabilities.

Even though most drivers would shudder at the thought, some of the priciest, most luxurious SUVs relish trouncing through mud, bounding over boulders and powering up steep inclines. Think of them as well-mannered brutes, frustrated for lack of opportunity to display their brawn.

As car buyers abandon truck-based SUVs for car-based ones — called “crossovers” by industry insiders — to gain more on-road comfort and capability, it’s the costlier truck-like models that continue to flaunt true rock-crawling abilities. (Click here to read about the difference between car- and truck-based SUVs.)

“This is the carryover from the idea that any ‘real’ SUV had to be able to get to the top of the mountain with its 4x4 system,” says George Peterson, president of AutoPacific Group, a California-based automotive research firm. In many ways, this makes a luxury SUV the vehicular equivalent of costly professional-quality stove and oven ranges sold to wealthy people who don’t cook much but would like to think they have the tools to whip up a gourmet meal if the need ever arises.

“Substantially less than 10 percent [of luxury SUV owners] indicate that they actually go off-roading,” says AutoPacific’s Peterson. “We actually think that the percentage that actually off-roads is less than 5 percent, but we have to go with what the owners report.”

While some lower-cost SUVs like the Jeep Wrangler and Nissan Xterra boast the largest percentage of “real” off-roader enthusiasts — Jeep says 60 to 80 percent of Wrangler owners take their vehicles to the trails — some large luxury models are equipped to tackle tough terrain. “The price of a Land Rover has always been higher than many other four-wheel-drive vehicles, based not just on luxury but on capability,” says Bob Burns, off-road events manager for Land Rover North America. “Range Rover customers want to buy the best and want to experience what their vehicles are built to do.” Go to the Land Rover Showroom to compare prices for different models.

Land Rovers have the highest off-road penetration among luxury SUVs, with 26 percent of all LR3 owners engaging in “real” off-roading, and 22.2 percent of all Range Rovers and 14.8 percent of Range Rover Sport drivers occasionally leaving the pavement. By contrast, the study found that no Cadillac Escalade EXT, Infiniti QX56 and Volvo XC90 owners ever venture off-road. (See the chart below for more data.)

Defining 'Off-Road'

How motorists define off-road driving affects those numbers. “Off-road for some of these folks could be in the shopping mall parking lot,” Peterson says. “We try to get at that by differentiating ‘real off-roading’ with ‘getting to fish/camp/hike sites’ in our study.” In other words, AutoPacific defines “real” off-roading as driving on rugged off-road trails, versus merely traversing a dirt or gravel path to access a fishing, hiking or camping site, for instance.

“The definition of ‘off-road use’ varies greatly, and we’re OK with that,” says Land Rover’s Burns. “Some customers consider it to be the snowy driveway to the ski house, while others may well define it as scaling the Sierra Nevada mountain range.”

Industry analysts agree that among all luxury SUV brands, Land Rover does the best job of creating an active community of off-roaders. For starters, most dealerships maintain their own off-road test courses, which can range from a simple hill climb to a full-blown facility for buyers to test their vehicles’ mettle and their own fear threshold. Beyond that, Land Rover dealers help make sure their customers have access to an assortment of off-road events and excursions.

“Our owners have the option of learning how to drive their vehicles off-road at a driving school, a retailer-organized event, or they can take a dive off the deep end by signing up to attend a Land Rover Adventure,” Burns says.

SUVs have been around for decades, arguably starting with limited but growing enthusiasm for truck-based station wagons post-WWII that were generically called “Suburbans” (long before Chevrolet trademarked the name. Luxury SUVs are a more-recent phenomenon. Born out of the SUV boom in the 1990s, today every mainstream luxury brand except for Jaguar offers at least one SUV.

Kings of Off-Road

Vehicle	Percent of owners who drive off-road
Acura MDX	1.4%
BMW X3	7.4%
BMW X5	4.3%
Cadillac Escalade	2.2%
Cadillac Escalade EXT	0.0%
GMC Yukon XL	6.1%
Infiniti FX	2.2%
Infiniti QX56	0.0%
Land Rover LR3	26.0%
Land Rover Range Rover	22.2%
Land Rover RR Sport	14.8%
Lexus GX 470	6.1%
Lincoln Navigator	9.1%
Mercedes M-Class	3.1%
Porsche Cayenne	10.5%
Subaru B9 Tribeca	3.5%
Volkswagen Touareg	9.8%
Volvo XC90	0.0%
Average Luxury SUV	7.15%

What to Look for

There are some basic parameters that every SUV must have for serious off-road duty. Primary among them is a four-wheel-drive system with low-range gearing that enables a slow crawl often needed to negotiate rough terrain.

Other important specifications include ground clearance, approach and departure angles, and fording depth. Go to the next page for definitions of these terms. A host of expensive accessories are available to improve off-road performance and safety. But instead of focusing on expensive add-ons, like brush guards and winches, those serious about off-roading should invest in training, off-roading expert Pietschmann says.

“The main thing you want to have when you’re off-roading is a prepared driver,” he says. “Ninety percent of everything off-road has to do with the driver — only 10 percent depends on the equipment.”

Bill Burke, an off-road driving instructor who runs 4-Wheeling America, in Fruita, Calif., stresses that drivers should adhere to the “three Ps” of off-roading:

• Patience – Drive slowly enough to be able to gauge the terrain and react accordingly.

• Planning – Stop and decide exactly how to negotiate an obstacle rather than just plow forward without a plan.

• Practice – Learn the capabilities of your vehicle and its equipment in safe surroundings before setting out to conquer a remote trail.

It’s also imperative to always be mindful of how the vehicle will impact the environment, Burke says. “Treat the outdoors where you drive like your own home — take care not to damage it or clutter it." Land Rover's motto of “tread lightly” encapsulates this idea.

Prior to the SUV boom of the 1990s, most SUVs were referred to as “four-by-fours,” expressed as “4x4s,” by virtue of four-wheel-drive systems that imbued them with nearly superhuman off-road and foul-weather abilities. Back then you had to get out of the truck and manually “lock” the front wheel hubs to send power to all four corners, however. Today’s 4x4 systems are much more sophisticated and come in several varieties, each of which is skewed more toward either off- or on-road use.

Here’s a quick rundown of the various similarities and differences between the competing types of systems:

• Part-Time 4WD: Typically the most-basic type of 4WD system found on the least-expensive models; the engine powers only the rear axle until the driver pushes a button or shifts a lever to engage the front wheels. Vehicles with this system include the Jeep Wrangler and Nissan XTerra.

• Full-Time 4WD: A driver can choose between rear-drive, 4WD and an “automatic” mode that engages the front wheels as needed when sensors detect wheel slippage. This system typically affords the best compromise between on- and off-road use. Vehicles with this system include the Chevrolet Tahoe and Ford Expedition.

• Permanent 4WD: Found on many higher-priced SUVs, this includes the automatic system mentioned above, but doesn’t offer two-wheel-drive. To some degree, all four wheels receive power at all times. Such systems may or may not include low-range gearing for extreme off-roading. Vehicles with this system include the Hummer H2 and Land Rover Range Rover.

• All-Wheel Drive: Similar to permanent 4WD and available on most car-based “crossover” SUVs and a few truck-based SUVs. AWD not only boosts traction, but also can improve cornering abilities on-road. Some systems vary the amount of power sent to each wheel, individually. Unlike 4WD, however, no low-range gearing is included, which means the system is not intended for serious off-roading. Vehicles with this system include the Buick Enclave, Cadillac Escalade, Lexus RX 350 and Mercury Mountaineer.

Some automakers will refer to their car-based SUVs as having 4WD, when really they’re equipped with AWD. This is a marketing ploy to create a burly image. The rule of thumb is that if it doesn’t include a switch or lever to engage low gear, it’s not a true 4WD system.

About Our Ranking

In our top 10 list of luxury off-road SUVs, we’ve listed the models retailing for $30,000 or more that we feel are the most rugged, based on a combination of personal experience, published performance reports and the manufacturer’s specifications.

We’ve included a few critical specs in that regard for each model on the list: ground clearance, approach and departure angles, and fording depth (see below for definitions of each). Sometimes these numbers are expressed as a range because the measurements either differ from version to version within a particular model line — given different suspension systems, tires and so on — or vary because of features like an adjustable-height suspension. We’ve also included a list of off-road enhancements available as factory options for each ranked model, though separate dealer-installed accessories may also or alternately be offered.

Definitions

• Ground clearance: One of the key specs for those looking to take an SUV off-road, ground clearance refers to the space between the lowest point on a vehicle’s chassis and the ground beneath it. The higher the ground clearance, the less likely the underbody and associated components will sustain damage over rocky and uneven terrain. Generally, this is measured from a point under the differential housing, though on some models this may not actually be the lowest spot, so bring a tape measure with you if you’re serious about comparing various models’ ground clearances. A serious down side to having higher ground clearance is the resulting higher center of gravity, which adversely affects the vehicle's on-road handling and makes it more susceptible to rollovers. Many luxury SUVs offer suspensions that can be lowered for highway use and raised for added off-road clearance at the push of a button.

• Approach angle refers to the steepest incline angle a vehicle can drive up from a flat surface without damaging the front bumper or undercarriage.

• Departure angle is like the approach angle for the back of the vehicle. It refers to the degree of incline a vehicle can negotiate without having the rear bumper or other overhang scrape.

• Fording depth represents the maximum depth at which an off-road vehicle can operate in water. Fording depth is important if you plan to cross creeks and streams along a trail.

10. Volkswagen Touareg
The Touareg hasn't been a big seller, despite being both luxurious and capable. It shares some components with the Porsche Cayenne. A standard 4Motion permanent AWD system enables the Touareg to scale a 45-degree grade; a sophisticated suspension gives relatively responsive on-road handling. Three engine choices include a 310-hp 5.0-liter V10 turbodiesel that generates 553 pound-feet of torque for extreme pulling and climbing power. A freshening later this year will rechristen it the Touareg 2.

Off-Road Specs:
Ground Clearance: 6.3-11.8 inches
Approach Angle: 28-33 degrees
Departure Angle: 28-33 degrees
Fording Depth: 19.7-22.8 inches

Off-Road Options:
Rear Locking Differential ($700)



9. Lexus GX 470
Introduced as a smaller and lower-cost alternative to the LX 470, the GX 470 is essentially a luxury version of the Toyota 4Runner with a V8 engine. A full-time 4WD system is standard, the vehicle's ActiveTRAC technology is able to apply the brakes to a slipping wheel while transferring the engine's power to wheels with better traction. An optional Kinetic Dynamic Suspension System hydraulically controls a set of oversized front and rear stabilizer bars to further enhance its trail response.

Off-Road Specs:
Ground Clearance: 8.3 inches
Approach Angle: 31-30 degrees
Departure Angle: 25-29 degrees
Fording Depth: N/A

Off-Road Options:
Kinetic Dynamic Suspension System ($1,750)



8. Porsche Cayenne
After taking the 2007 model year off, the Porsche Cayenne is updated and reintroduced as an early-2008 entry. As before, it's offered in 290-hp base, 385-hp S and 500-hp Turbo S models, the latter of which boasts the best off-road specs, but is priced just short of $100,000. The Cayenne's sophisticated 4WD system can send up to 100 percent of the vehicle's traction to the front or rear axle if needed. The available Porsche Dynamic Chassis Control (PDCC) system limits vehicle roll on pavement through corners and enables maximum axle articulation and improved traction off-road.

Off-Road Specs:
Ground Clearance: 8.6-10.7 inches
Approach Angle: 28.6-31.8 degrees
Departure Angle: 22.8-25.4 degrees
Fording Depth: 19.7-21.9 inches

Off-Road Options:
Fire Extinguisher ($140); Off-Road Technology Package ($2,640; includes rear differential lock, rocker panel protection, additional skid plates and undercarriage protection); Porsche Dynamic Chassis Control ($3,510); Sportdesign Package with Off-Road ($3,395; includes front and rear lower bumper covers, extended roof spoiler and rocker panel extensions, front and rear stabilizer bars that can be disconnected hydraulically, rear differential lock, additional skid plates and undercarriage protection, headlamp washers, additional tow lug)



7. Mercedes-Benz G500
Derived from a German military vehicle designed in the 1970s, the G500 soldiers on as an unabashedly boxy, low-volume, high-priced and somewhat eccentric luxury SUV. While it offers a comfortable cabin, the G500 remains rugged and is one of the few SUVs of any kind to offer three separate locking differentials for exceptional off-road aptitude. Its 292-hp V8 engine has to work hard to move the un-aerodynamic bulk with authority; the G55 AMG version includes a much-quicker 469-hp supercharged V8, but at a steep price.

Off-Road Specs:
Ground Clearance: 8.3 inches
Approach Angle: 36 degrees
Departure Angle: 27 degrees
Fording Depth: 19 inches

Off-Road Options:
N/A



6. Lexus LX 470
Lexus' upscale version of the venerable Toyota Land Cruiser excels as a posh off-road adventurer, thanks to a hardy, full-time 4WD system that features a locking center differential and four-wheel traction control. A height-adjustable adaptive suspension provides added ground clearance for off-road use. While the 2007 model's 4.7-liter V8 is rather meek at 268 hp, the vehicle will receive a more-powerful 381-hp 5.7-liter V8 engine with its 2008 redesign, which will prompt a name change to the LX 570.

Off-Road Specs:
Ground Clearance: 9.8 inches
Approach Angle: 30-32 degrees
Departure Angle: 23-26 degrees
Fording Depth: N/A

Off-Road Options:
N/A



5. Land Rover Range Rover Sport
This big SUV is sporty by SUV standards, thanks largely to well-balanced handling and strong engines (300-hp V8 or 390-hp supercharged V8). However, the Range Rover Sport can be just as entertaining on the trails. It shares the LR3 and Range Rover's low-range 4x4 gearing, lockable center differential and the Terrain Response system that maximizes performance according to five settings that correspond to different road conditions; three of which are off-road (mud, sand and rocky surfaces).

Off-Road Specs:
Ground Clearance 7.4-9.6 inches (front); 7.9-10.0 inches (rear)
Approach Angle: 30.2-34.0 degrees
Departure Angle: 26.0-29.0 degrees (with spare tire); 13.9-16.9 degrees (with tow bar)
Fording Depth: 27.6 inches

Off-Road Options:
Locking Rear Differential ($500); Dynamic Response Package ($2,000; includes dynamic-response suspension, Brembo front brakes)



4. Land Rover LR3
You could certainly pay less for a midsize SUV, but few combine the inherent luxury and off-road readiness of the LR3. Known as the Discovery in other markets, this upper-crust Brit offers a choice of V6 and V8 engines, with five- or seven-passenger seating. A center-locking differential, a long list of chassis control functions and the automaker's adjustable Terrain Response system combine to deliver secure handling and a smooth ride in a wide range of conditions.

Off-Road Specs:
Ground Clearance: 8.0-10.2 inches (front); 8.4-10.6 inches (rear); 7.3-9.5 inches (under differential)
Approach Angle: 32.2-37.2 degrees
Departure Angle: 24.9-29.6 degrees
Fording Depth: 27.6 inches

Off-Road Options:
Heavy-Duty Package ($625; includes active locking rear differential, full-size spare with alloy wheel)



3. Mercedes-Benz GL450
Introduced for 2007, the seven-passenger GL450 is well suited for both carpooling and off-roading. Unlike most 4x4s, it's built on a reinforced unibody structure that affords more of a car-like feel on pavement than the truck-based competition. Be aware, however, that you'll need to specify the $2,200 Off-Road Package to maximize ground clearance and off-road prowess. A 4.6-liter V8 engine is rated at a hearty 335 hp and comes mated to a seven-speed automatic transmission.

Off-Road Specs:
Ground Clearance: 7.9-10.9 inches
Approach Angle: 33.0 degrees
Departure Angle: 27.0 degrees
Fording Depth: 19.3-23.6 inches

Off-Road Options:
Off-Road Package ($2,200; includes additional ground clearance, locking differentials, underbody skid plates, adaptive damping suspension)



2. Land Rover Range Rover
With a well-heeled British pedigree, the V8-powered Range Rover continues to lead SUVs that venture into the wilderness. It's also one of the costliest, most luxurious SUVs offered. Land Rover's Terrain Response system allows the driver to tailor the vehicle's electronic controls and traction aids according to various road conditions, while an electronic rear differential (standard on the 400-hp Supercharged model and optional on the 305-hp base version) improves the vehicle's already tenacious trail-forging talents.

Off-Road Specs:
Ground Clearance: 8.7-11.0 inches (front); 9.5-11.5 inches (rear)
Approach Angle: 29.0-34.0 degrees
Departure Angle: 24.2-26.6 degrees (with spare tire); 15.2-17.4 degrees (with tow bar)
Fording Depth: 27.6 inches

Off-Road Options:
Locking Rear Differential ($500)



1. Hummer H2
Though it has become the mascot for excessive consumption, the Hummer H2 is nonetheless one of the most capable off-road vehicles around. A rugged, full-time 4WD system with low-range gearing enables it to climb 16-inch steps and rocks; short front and rear overhangs and a generous ground clearance mean there's less of a chance the vehicle will get hung up on bumpy trails. A 325-hp 6.0-liter V8 offers ample power and a 7,000-pound tow rating.



Off-Road Specs:Ground Clearance: 9.7-10.1 inches
Approach Angle: 39.8 degrees
Departure Angle: 37.1 degrees
Fording Depth: 24 inches

Off-Road Options:
Adventure Kit ($325; includes two-way radios, tire deflators, light, binoculars, compass, wind-resistant lighter); Adventure Series ($2,530; includes brush guard, first-aid kit, roof rack, CD changer, air suspension, tool kit, floor mats); Brush Guard (basic, $525; wrap-around version, $675; chrome wrap-around version, $995); Off-Road Lights ($1,410); Spot Lamps ($450; roof mounted, $998); Taillamp Protectors ($250; chrome, $350)
(C)Jim Gorzelany, Forbes

Top 10 Luxury Vehicles with the Lowest Resale Value

Watch for reliability and obsolete technology when car shopping with an eye toward resale values.

Poor reliability, aging designs and supply that exceeds demand are the main culprits for low resale values. The 10 luxury vehicles likely to shed the most value over time each have at least one of those qualities.

The top two value losers on our list, the Lincoln Town Car and Mercury Grand Marquis, which are based on the same Ford platform, have at least two counts against them. Both cars are sold in large numbers to various vehicle fleets, such as limo, taxi and rental agencies, and they use decades-old technology. At least their predicted reliability, as rated by Consumer Reports, has improved in recent years to “average.”

Larry Batton, president and founder of Auto Appraisal Group Inc., says that these two cars “are archaic and don’t fulfill the requirements of modern buyers." The average age of a Lincoln Town Car buyer in 2006 was 69; for a Mercury Grand Marquis buyer it was 67, according to a Ford spokesperson. "That plus the high supply due to heavy fleet use adds up naturally to dismal resale values,” Batton says. He’s referring to the fact that every year the market is flooded with vehicles retired from fleet use, which creates a huge supply that outstrips demand.

The Lincoln Town Car, our list’s top loser, is plagued by another problem: Starting at $45,000 and easily selling for well over $50,000 with options, it’s “dangerously in the price category of some really excellent cars,” Batton says — cars like the BMW 5 Series, Infiniti M35 and Lexus GS. “All are significantly more modern and more appropriate to a wider cross-section of buyers,” Batton says.

Other cars on this list have a similar issue: Their price is too high for the value they offer. The Mercedes-Benz E550 on the list is a good car but seems overpriced at more than $60,000, especially with reliability ratings much lower than those of a competing BMW 5 Series or Lexus ES. Plus, the six-cylinder-powered Mercedes E350 costs $8,500 less than the V8-powered E550. The E350 is a better deal and its residual values show it: Kelley Blue Book projects that the E350 will retain 37 percent of its value after five years and the E550 only 26 percent.

Reliability is Key

Reliability didn't play as great a role on our previous list of Top 10 Luxury Vehicles with the Highest Resale Value, but it figures prominently into the bottom 10. “Any reliability hiccups or predicted quality issues will likely show up once the car is used, after some wear and tear,” Batton says.

And this has significant implications for those who lease vehicles. “The lease is heavily determined by the residual value,” says Eric Ibara, director of market valuation at Kelley Blue Book. “You’re paying for the depreciation from when you purchase the car to when you return the vehicle. You’ll often get a great deal on vehicles that have a high resale value because the dealer will be able to sell it for more when used.” So vehicles with the lowest residual values are a double-edged sword: They offer the lowest potential return on resale for those who buy and require more money upfront to lease.

It’s important to note that this list isn’t comprised of a bunch of bad cars. Based on our test-drives, the Cadillac STS and Lincoln MKZ that made our value-losers ranking actually perform well. And others on this list are desirable image-wise. The question is, how much are you willing to pay for perceived prestige? For instance, the elegant Jaguar S-Type, with its fragrant leather interior, might instantly appeal to those who always dreamed of owning a Jag; same with the Mercedes-Benz E550.

“Buying a car is an emotional decision, and for some, a snap decision,” Ibara says. “Despite some potential red flags — overly high lease prices, lower quality ratings and bad resale value — people still buy them. But if you’re really interested in getting a good price for the used car, it’s worth it to take time and evaluate all the facts when buying — rather than just go with your gut.”

Graceless Aging

Another important aspect to keep in mind is that for mainstream vehicles, the longer they are on the market without getting significant updates or redesigns, the more likely residual values will suffer. "It's almost a given that cars near the end of their life cycle — unless they're cultural icons — are going to suffer in the residual value department, simply because they're lagging behind newer designs in technology, comfort and safety features, which in the auto industry are changing fast," says Auto Appraisal Group's Batton.

The Jaguar S-Type and X-Type on this list are good examples of this. The S-Type was first introduced for the 2000 model year and the X-Type for the 2002 model year. Neither vehicle has seen significant updates since their debut, while competing models have been revamped. "Consumers are going to gravitate toward newer, fresher choices.... No amount of 'freshening-up' during a life cycle can make up for a redesign," Batton says.

Our list of the Top 10 Luxury Vehicles with the Lowest Resale Value was compiled using Kelley Blue Book data for new vehicles with manufacturer suggested retail prices (MSRPs) of $30,000 and up, including specific trims of vehicles, not just base MSRPs. The residual values are expressed as a percent of the original MSRP five years into the future. We've put the vehicles in ascending order. Those that tied for a particular ranking are in alphabetical order.

Kelley Blue Book estimates future vehicle values based on a model’s past performance as well as new or notable features. “The best indicator of future performance is past performance,” Ibara says. For newly introduced models, Kelley Blue Book looks to past similar models from a given manufacturer.

10. Cadillac SRX V8
MSRP: $43,870
Residual Value After Five Years: 27 percent*

A "Poor" reliability rating from Consumer Reports sheds a negative light on this midsize SUV. In this extremely crowded and competitive segment, that can really hurt a vehicle's success.

The current-generation SRX is nearing the end of its life cycle and soon will be replaced by an all-new version. Despite Consumer Reports' poor reliability rating, we think the SRX's sporty performance and versatility are appealing.

9. Ford Expedition V8 4WD
MSRP: $32,895
Residual Value After Five Years: 27 percent

As we wrote in the Top 10 Luxury Vehicles with the Highest Resale Value feature, performance is a primary driver of used car values. The Ford Expedition makes this list largely because of sluggish performance compared to other big SUVs. It has a 300-hp V8, which sounds powerful, but really isn't for a vehicle that weighs well over three tons.

On top of being rather under-powered, the Expedition guzzles fuel. "It's just not at all ideal for what's going on right now in the world — namely, rising gas prices and increasing interest in 'green' vehicles," says Auto Appraisal Group's Larry Batton.

8. Cadillac DTS V8
MSRP: $41,990
Residual Value After Five Years: 26 percent*

The Cadillac DTS is another solid performer marred by low residual values. Part of the problem is that, like the Lincoln Town Car and Mercury Grand Marquis on this list, the DTS is sold to fleets for use as a limo, livery cab and the like. Lots of them get pumped into the used-car market once they're retired from fleets and throw off the supply-demand ratio.

Also working against the DTS is the fact that it competes with full-size sedans from Audi, BMW, Lexus and Mercedes-Benz. Those brands have more clout than Cadillac and are currently regarded as leading innovators. In the upper echelons of the luxury-sedan market, where "mine is better than yours" is a mantra, clout and innovation are key.

7. Cadillac STS V6
MSRP: $42,765
Residual Value After Five Years: 26 percent*

Like the larger DTS, the Cadillac STS is a solid performer and appealing in many ways. But, “American cars are having a tough moment,” says Auto Appraisal Group’s Larry Batton. General Motors, Ford and Chrysler are struggling to regain a competitive edge long lost to foreign manufacturers.

Just as the DTS competes in a heady field, so does the STS. It goes up against the Audi A6, BMW 5 Series, Infiniti M, Lexus ES and Mercedes-Benz E-Class, all of which have higher residual values; the Infiniti M even made our top 10 list for highest residual values. For the STS, power pays: the V8-powered model has a five-year residual value of 30 percent and the hot rod STS-V 39 percent.

6. Lincoln MKZ AWD
MSRP: $31,765
Residual Value After Five Years: 26 percent*

The Lincoln MKZ (formerly the Zephyr) is based on the Mazda 6 platform. The Mazda 6 is an excellent car and so is the MKZ, but the $5,000 to $10,000 price premium for the Lincoln makes it less appealing, despite its luxury features and respectable performance. In its favor, the MKZ gets an "Excellent" predicted-reliability rating from Consumer Reports.

Like with most luxury cars, the MKZ offers what auto analyst Ricky Beggs of Black Book Auto Research calls "fluff features." Some of these options, such as pricey navigation systems, quickly become obsolete and can drag down residual values.

5. Mercedes-Benz E550
MSRP: $59,775
Residual Value After Five Years: 26 percent*

Reliability of Mercedes-Benz vehicles has plummeted, says Larry Batton of Auto Appraisal Group. Poor reliability erodes resale value. Mercedes execs have unofficially admitted to us that adding too much new technology without enough time to fully test it was a downfall with the E-Class and caused many of the model's widely documented problems in recent years.

Compared to the V8-powered E550, the six-cylinder-powered E-Class sedans and wagons — E350 and E320 diesel — retain more value: 37 percent after five years, according to KBB. Likewise, the low-production, high-performance E63 AMG, with 41 percent of its value retained after five years. The E550 cranks out 114 hp more than the E350 but costs a whopping $8,500 more.

4. Jaguar S-Type V6
MSRP: $49,000
Residual Value After Five Years: 25 percent*

The current-generation S-Type debuted as a 2000 model and is near the end of its life cycle and will be replaced by an all-new sedan called the XF. Auto Appraisal Group's Batton says that residual values almost always suffer when vehicles are at the end of their life cycle as consumers gravitate to the latest and greatest offerings.

Besides being long in the tooth, the midsize Jaguar S-Type also suffers from poor reliability, according to Consumer Reports, a double-whammy for residual values. And its retro styling, though elegant, no longer stands out against jauntier competitors.

3. Jaguar X-Type Sedan and Wagon
MSRP: $34,995
Residual Value After Five Years: 25 percent*

The X-Type has struggled since its 2002 debut. It never quite mustered the appeal and performance of more-capable competitors such as the BMW 3 Series, Infiniti G35, Lexus IS and Mercedes-Benz C-Class.

Jaguar plans to quietly phase out the lame duck X-Type. Poor reliability, as rated by Consumer Reports, is only one knock among many. Auto industry insiders fault the X-Type for being little more than a dressed up Ford Mondeo.

2. Mercury Grand Marquis LS
MSRP: $30,320
Residual Value After Five Years: 23 percent*

The Mercury Grand Marquis is "a big, bulky vehicle that simply doesn't reflect trends in the current market," says Auto Appraisal Group's Larry Batton. Buyers of the Grand Marquis owners are 67 years old on average. "The market for this huge car is small and getting smaller," Batton says.

Even though the Grand Marquis is a good value for its sheer size and features, the fact that so many are sold to fleet operations such as cab services hurts resale values. "When cars are used heavily in fleets, supply goes up, and demand — and prices — go down," Batton says.

1. Lincoln Town Car
MSRP: $42,985
Residual Value After Five Years: 17 percent*

The Lincoln Town Car is archaic by today's automotive standards, much like the Mercury Grand Marquis that shares its platform. "It doesn't reflect the needs and wants of a modern consumer anymore — it's a niche vehicle," says Auto Appraisal Group's Batton. Not only that, but at nearly $45,000 to start and well over $50,000 with options, "it has dangerously entered the same price territory as significantly more sophisticated import luxury sedans," he says.

The average age of Town Car buyers is 69 — an indicator of the dwindling group of potential buyers for this vehicle. And like the Mercury Grand Marquis, the Lincoln Town Car is sold in large numbers to limo and other fleet services, which boosts the supply way past the demand once these vehicles hit the used-car market.

* Residual values are courtesy of Kelley Blue Book and expressed as a percentage of the original MSRP.
(C)Stephen Milioti, Forbes