Beware: Cars That Depreciate the Most
Cars That Depreciate the Most and the Least
We’ve all heard about how new cars lose a ton of their value as soon as you drive them off the dealer’s lot. Buying used is supposed to help buyers guard against such a dramatic decline in their investment, but today’s used-car market is hotter than ever, to the point where some people are actually paying more for a used car than the same new one. So new may make sense, sure — but which one? Here are your best bets for cars that hold more of their value longer, according to an analysis by iSeeCars, along with the vehicles you’ll want to avoid.
Low Depreciation: Chevrolet Camaro
Average 5-year depreciation: 20.2%
The Camaro is a Chevy icon that first hit the road in the 1960s as a rival to Ford's Mustang; committed fans ensure they retain their value relative to other vehicles.
Low Depreciation: Nissan Versa
Average 5-year depreciation: 19.9%
As a compact car with high gas mileage, the Nissan jumped to the top 10 list this year. "High gas prices always shift demand toward more fuel-efficient vehicles, increasing the value retention of these models,” explained Karl Brauer, executive analyst for iSeeCars.
Low Depreciation: Toyota Corolla
Average 5-year depreciation: 19.8%
Again, it was all about fuel efficiency trending last year, and the Corolla is known for its stability and gas mileage.
Low Depreciation: Ford Mustang
Average 5-year depreciation: 19.4%
No list of iconic American vehicles would be complete without the Ford Mustang, which also has a devoted following and has even been recently reimagined as an electric crossover.
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Low Depreciation: Subaru BRZ
Average 5-year depreciation: 18.2%
Sports cars saw a spike in popularity during the pandemic, likely as a means for fun and escapism. “We saw prices jump for sports cars after the lockdowns began, and they maintained their strong original value even as restrictions were lifted,“ said Brauer.
Low Depreciation: Honda Civic
Average 5-year depreciation: 16.3%
This popular, compact car has high gas mileage — and rising gas prices likely propelled this model to the top 10 list this year.
Low Depreciation: Toyota Tacoma
Average 5-year depreciation: 14.9%
“The in-demand Tacoma is the bestselling midsize truck in the country,” Brauer says. “These indestructible trucks can be workhorses or dependable family haulers, which widens their appeal and helps boost resale value.”
Low Depreciation: Porsche 911
Average 5-year depreciation: 14.6%
This flashy, pricey Porsche — the 2022 model starts at $101,000 — keeps its value precisely because the automaker keeps production numbers low, Brauer says. “Along with the 911’s timeless design and reputation for reliability, Porsche sells few 911s relative to market demand, so there aren’t many 911s in the used-car marketplace.”
Low Depreciation: Jeep Wrangler Unlimited
Average 5-year depreciation: 8.7%
The four-door Jeep Wrangler Unlimited is eclipsed only by its two-door sibling when it comes to retaining the most value. One factor helping hold it steady: A consistent look from year to year. “Jeep Wranglers have maintained their iconic design, so even older models don’t appear dated,” Brauer notes.
Lowest Depreciation: Jeep Wrangler
Average 5-year depreciation: 7.3%
It’s no surprise to see the Wrangler in the top spot here, said Brauer. “Jeep Wranglers are known for retaining their value due to their enthusiastic fan base, as well as their durability and performance across all terrains, especially off-road.”
Related: Timeless Jeeps Everybody Still Loves
High Depreciation: Ford Expedition
Average 5-year depreciation: 50.7%
Thanks to its large size, gas-guzzling status, and trends heading toward fuel-efficient vehicles, the Ford Expedition saw an average difference of $14,049 from MRSP.
High Depreciation: Volvo S90
Average 5-year depreciation: 51.4%
Turns out Volvos aren't always timeless. The Volvo S90 saw a $32,321 average difference from the MSRP.
High Depreciation: Audi A6
Average 5-year depreciation: 51.5%
The pricey Audi A6 starts at just under $56,000, plus it’s a sedan — and used-car buyers are increasingly turning away from sedans, Brauer says. “The popularity of sedans has declined, so the price has to significantly drop to make these vehicles desirable to used-car shoppers to compensate for their high operating costs and outdated technology.”
High Depreciation: Lincoln Navigator L
Average 5-year depreciation: 51.9%
The Navigator L has two strikes against it. First, it’s a quick-to-be-replaced luxury vehicle; second, it’s often used for commercial purposes, diluting its value even more. “The Lincoln Navigator L is a common fleet and livery vehicle, which depreciate more than privately owned vehicles,” Brauer says.
High Depreciation: Mercedes-Benz S-Class
Average 5-year depreciation: 51.9%
"Luxury vehicles ... also tend to depreciate at higher rates because used-car shoppers don’t value their premium features as much,” according to Brauer.
High Depreciation: Cadillac Escalade ESV
Average 5-year depreciation: 52.3%
“Just as higher gas prices increase demand for fuel-efficient vehicles, they also decrease demand for full-size SUVs like the extra-large Cadillac Escalade ESV and Lincoln Navigator,” said Brauer.
High Depreciation: Infiniti QX80
Average 5-year depreciation: 52.6%
Large SUV's dropped in demand, with the Infiniti new to the top 10 list this year. It had a whopping $44,265 average difference from the MSRP.
High Depreciation: Jaguar XF
Average 5-year depreciation: 54.0%
Though the Jaguar XF is a bit more moderately priced than the Audi A6 or BMW 5 Series, starting in the mid-40s, it’s still in that hard-to-resell category of luxury sedans.
High Depreciation: Maserati Ghibli
Average 5-year depreciation: 56.3%
Granted, your average Maserati buyer may not obsess over how much they can get for their car after five years, but the news isn’t good regardless. Perhaps the most exotic of the luxury sedans on this list, the 2022 model starts at $78,000.
Related: Classic Italian Sports Cars We Wish Were in Our Driveway
Highest Depreciation: BMW 7 Series
Average 5-year depreciation: 56.9%
When luxury just isn’t enough, there’s the “superluxury” BMW7. This full-size sedan’s sky-high price tag — $86,800 is the starting cost for a 2022 model — means it has to really come down in price to be within reach for many used-car buyers.
This article was originally published on Cheapism
