In summary, a comprehensive study by iSeeCars.com analyzed over 8.2 million car sales to identify which models depreciate the least and most over a five-year period. The data reveals that premium cars tend to depreciate at a higher rate, whereas trucks, SUVs with truck platforms, and sports cars generally retain their value better.
The Jeep Wrangler Unlimited stands out as having the lowest depreciation rate, with two models available at LA City Cars. Toyota's Tacoma and Tundra also rank high in terms of value retention due to their reliability and quality reputation. Porsche vehicles, including various Cayenne and Panamera models, are also found to hold their value well.
On the other end of the spectrum, luxury sedans like the BMW 7 Series experience significant depreciation, losing about 72.6% of their value within five years due to their expensive features that may not be as valued in the used car market. Luxury sedans' decline in popularity, coupled with an influx of off-lease models, contributes to this rapid depreciation. Electric vehicles, such as the Nissan LEAF, also suffer from high depreciation rates due to government incentives affecting the resale price and the rapid advancements in battery technology rendering older models less competitive.
For buyers on a budget, the Mitsubishi Mirage has the highest depreciation among cars under 25,000−25,000,whileHondaFitdepreciatestheleast.Intheunder−50,000 category, the Volvo S60 experiences the highest average depreciation of 67.8%.
Ultimately, understanding a vehicle's depreciation rate is critical for consumers when making purchasing decisions. Choosing a car that holds its value can lead to substantial savings if you plan to sell or trade it in within a few years, while buyers looking for used cars can take advantage of steep depreciation to find good deals.