Buying a new vehicle is an important decision, probably the second most expensive investment you’ll ever make, and choosing a vehicle that retains its value over time can be financially beneficial. Recent data from iSeeCars offers valuable insights into the top 25 least depreciating vehicles over five years, highlighting trends and key models that stand out in the market.
While the average five-year depreciation for vehicles is 38.8%, some segments and models perform much better. Notably, trucks and hybrids are among the best at holding their value, losing only 35% and 37% of their value respectively over five years. Conversely, electric vehicles (EVs) fare the worst, with an average depreciation of 49.1% over the same period.
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The iSeeCars study, which analyzed over 1.1 million vehicles sold from November 2022 to October 2023, revealed that several sports cars, small SUVs, and economy cars also have strong value retention. The Porsche 911 leads the pack, losing only 9.3% of its value after five years. Other high performers include the Toyota Tacoma, Jeep Wrangler, and Honda Civic, all known for their reliability and enduring popularity.
The reduced new car production during the pandemic and a constrained used car supply have improved value retention across the board. Before the pandemic, the average vehicle would lose about 50% of its value in five years. Today, this figure has improved to 38.8%, a testament to the current market conditions.
Luxury SUVs and sedans, however, tend to depreciate more rapidly. Models like the Maserati Quattroporte, BMW 7 Series, and Maserati Ghibli are among the worst in terms of value retention. This stark contrast underscores the importance of selecting the right vehicle type and model when considering long-term value.
The disparity between electric vehicles and hybrids is particularly noteworthy. Despite the push towards EVs, hybrids retain their value much better, providing a compelling option for consumers who seek higher fuel efficiency without the range anxiety associated with EVs.
Among the top 25 vehicles with the lowest five-year depreciation, Porsche tops the list with the 911 and 718 Cayman followed by the Toyota Tacoma, Jeep Wrangler, and Honda Civic. Enjoy the full list of the Top 25 vehicles with the lowest 5-year depreciation follows below.
Top 25 Vehicles With the Lowest 5-Year Depreciation – iSeeCars Study | |||
Rank | Model | Average 5-Year Depreciation | Average $ Difference from MSRP |
1 | Porsche 911 (coupe) | 9.3% | $18,094 |
2 | Porsche 718 Cayman | 17.6% | $13,372 |
3 | Toyota Tacoma | 20.4% | $8,359 |
4 | Jeep Wrangler/Wrangler Unlimited | 20.8% | $8,951 |
5 | Honda Civic (sedan/hatchback) | 21.5% | $5,817 |
6 | Subaru BRZ | 23.4% | $8,114 |
7 | Chevrolet Camaro | 24.2% | $10,161 |
8 | Toyota C-HR | 24.4% | $6,692 |
9 | Subaru Crosstrek | 24.5% | $7,214 |
10 | Toyota Corolla | 24.5% | $5,800 |
11 | Ford Mustang | 24.5% | $10,035 |
12 | Porsche 718 Boxster | 25.1% | $20,216 |
13 | Toyota Tundra | 25.3% | $12,588 |
14 | Kia Rio 5-Door | 25.8% | $5,006 |
15 | Porsche 911 (convertible) | 26.0% | $42,227 |
16 | Honda HR-V | 26.2% | $7,318 |
17 | Subaru Impreza (wagon) | 26.2% | $6,927 |
18 | Kia Rio | 26.3% | $4,959 |
19 | Chevrolet Spark | 26.6% | $4,784 |
20 | Toyota RAV4 | 27.2% | $8,858 |
21 | Hyundai Accent | 27.4% | $5,353 |
22 | Toyota 4Runner | 27.4% | $13,147 |
23 | Chevrolet Corvette | 27.5% | $22,712 |
24 | Nissan Kicks | 27.5% | $6,560 |
25 | Subaru Impreza (sedan) | 27.8% | $7,158 |
Overall Average | 38.8% | $17,221 |
“Several sports cars are among the top vehicles at holding their value, including four of the top 10 models,” said Brauer. “We saw a spike in demand for ‘fun’ cars during the pandemic lockdowns, and demand for them remains strong in the post-pandemic world.”
These models demonstrate a strong market demand and robust value retention, making them excellent choices for potential buyers. Additionally, brands like Toyota, Subaru, and Chevrolet feature prominently in the list, reflecting their continued appeal in the market.
For those looking to invest in a vehicle with strong value retention, focusing on trucks, hybrids, and select sports cars and small SUVs is a wise strategy. The current market trends and data highlight the importance of choosing a model that not only meets your needs but also retains its value over time, ensuring a sound investment.