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Cars with Lowest Depreciation Might Hold More Higher Resale Value

By TheCarzingTeam April 6, 2022 | Car News

Car News

A new car depreciates quickly. In fact, once the owner drives it off the lot, the value is already lowered. The first few years lead to the most depreciation. Over time, as buyers pay down the principle on a loan, the car may gain equity.

Some vehicles depreciate more significantly than others, as these vehicles might not be popular choices on the resale market. There are many vehicles that hold their value and are always in demand at dealerships. The cars with lowest depreciation might mean higher trade-in values for the owner, or, if they sell the car privately, more cash in their pocket.

What are the cars with the lowest depreciation? The site iSeeCars compiled a list of the 10 vehicles that hold their value; here are the top five models that had the lowest depreciation after five years:

  • Jeep Wrangler
  • Jeep Wrangler Unlimited
  • Porsche 911
  • Toyota Tacoma

Jeep models took the top two spots for lowest depreciation over a five year time period. Karl Brauer, iSeeCars executive analyst, noted in the site’s study that Wranglers have a following, and their design style also has remained consistent. For this reason, these cars won’t show their age or look stuck in a specific decade.

The list also included several sports cars—or muscle cars—like the Chevrolet Corvette, the Dodge Challenger and the Chevrolet Camaro. These vehicles might hold their value as many car buyers collect them, and, through the years, the models have remained in demand. Brauer explained that the cars also are ‘aspirational’ and, like a few others on the list, aren’t easy to find when shopping.

Cars with Lowest Depreciation

The Models that Hold their Value

Buyers on the hunt for a new vehicle can explore the models from iSeeCars’ list. Here’s what to know about the five cars with the lowest depreciation:

2021 Jeep Wrangler

The 2021 Jeep Wrangler has a base price of $28,870. The Wrangler can take on all the tough terrain, including off-roading adventures. For car owners that need to tow a trailer or small camper, the Wrangler offers a 2,000 to 3,500 pound towing capacity. While it isn’t extremely fuel efficient, the Wrangler can drive up to 29 miles per gallon on the highway (22 in the city). The Wrangler loses only 9.2 percent from its MSRP in a five year period.

2021 Jeep Wrangler Unlimited

The 2021 Jeep Wrangler Unlimited is priced at $74,795 and has the capability to tow up to 3,500 pounds. This model gets 13 MPG in the city and 17 MPG on the highway. Over a five year period, the Unlimited only loses 10.5 percent of its original value.

2021 Porsche 911

With an MSRP of $99,200, the 911 is one of the more expensive models on the list. However, after five years, this model retains much of its original value and loses only 12.8 percent of the original price. Why does the 911 hold its value so well? Brauer explained that this model isn’t common on the resale market; the 911 also features an appealing and classic design.  

2021 Toyota Tacoma

The Tacoma is a small pickup truck that has a base price of $26,400 and has a towing capacity of 3,500 to 6,800 pounds. Over five years, the Tacoma only loses 13.8 percent of its original MSRP.

2021 Toyota Tundra

The Tundra is Toyota’s larger pickup model and has a base price of $34,125. The Tundra is capable of towing 8,800 to 10,200 pounds. After five years, the Tundra only depreciated 19.5 percent from its original MSRP. In contrast, one of the best selling pickup trucks on the market—the Ford F-150—depreciates 39 percent over a five year period.

Cars with Lowest Depreciation

The Worst Vehicles for Depreciation

If Jeep Wranglers hold the top spots for the vehicles with the lowest depreciation, what vehicles depreciate the most over five years? MotorTrend listed 16 of the 2021 models that were expected to have the highest depreciation; these are the 10 models with the highest depreciation:

  • 2021 BMW 530i
  • 2021 Alfa Romeo Giulia
  • 2021 Volvo V60 T5
  • 2021 BMW M850i Gran Coupe
  • 2021 Cadillac CT5
  • 2021 Mitsubishi Mirage G4
  • 2021 Honda Clarity Plug-In Hybrid
  • 2021 Volkswagen Arteon
  • 2021 Volvo S90 Recharge T8
  • 2021 Genesis G90

The vehicles with the highest depreciation were luxury models like BMW, Alfa Romeo and Cadillac. However, the Mitsubishi Mirage popped up in the sixth spot. This is interesting to note, as the Mirage is not only the most fuel efficient vehicle on the market, but it’s also the least expensive. However, MotorTrend explained that the model isn’t known for its reliability; with a base price of less than $16,000 the Mirage kept less than 40 percent of its retail value.

Why Should Buyers Choose Vehicles with Low Depreciation?

When shopping for a new or used vehicle, understanding a vehicle’s depreciation trends is important. The faster a vehicle depreciates the less value it holds. For buyers, this means that the vehicle may be worth less as a trade-in or command a lower price when selling privately.

It might also be important to consider a car’s future depreciation when financing the vehicle, too. Depreciation may be even more important if a buyer is trading in a vehicle with negative equity and plans to roll the balance into the price of the new vehicle. For models that don’t hold their value, gaining equity when the buyer is already upside down could take much longer.

In addition, vehicles with strong resale value and lower depreciation also could be better choices for buyers preferring used models.

Finding the Resale Value of a Vehicle

Buyers can find lists of the models with the highest and lowest depreciation, but many models fall somewhere in the middle. They aren’t the best models for holding value, but they also aren’t the worst. How can buyers find out how much their vehicle is worth after five years, especially if they are ready to trade it in for a newer model or something better?

Kelley Blue Book (KBB) is considered the gold standard when buyers need a reliable resource for uncovering their car’s value. Car owners can use KBB to find the estimated trade-in value of their car, and KBB also can help buyers understand the resale value of their vehicle in the private sector, too.

While some buyers want to trade-in their vehicle to help offset the price of a new or used vehicle, other car owners want to get the most money for their vehicle and opt to sell it privately. KBB can help take the mystery out of deciphering a car’s value over time.

Use Carzing to Find the Best Car with the Lowest Depreciation

Buyers who are shopping for a new car can use Carzing to find a model that will best retain its value over five years. Search by make/model to search for specific models featured on iSeeCars’ list.

Search for used or new models or look at all the options. Buyers also can refine their search by selecting a specific price range. Sort the results by price, mileage, or age.

Buyers can use Carzing to get pre-qualified for financing, too. Find the financing with the lowest monthly payment or choose the option with the shortest loan term. Carzing also shows buyers how much they will need for a down payment.

Print out all the financing details and take it to a participating dealer. At the dealership, buyers can focus on completing the credit application and finalizing the deal. Use Carzing to simplify the search and find the best financing, too.

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