There are many factors to consider when buying a car and resale value is near the top of the list for some buyers. In particular, those buying a new car or planning to buy out their lease should take this important factor into consideration.The unfortunate reality is that the vast majority of cars lose value as time progresses. Very few retain their value and even fewer appreciate. How much do new cars depreciate exactly? The facts aren’t pretty.On average, new cars can lose 20% or more of their value after the first year of ownership, 10-15% after the second year of ownership, and around 10% each year after that. Ultimately, this can result in a new car losing as much as 50-60% of its original value within five years.Nevertheless, some cars hold their value better than others, possibly making them financially better buys. In 2019, iSeeCars used industry data to evaluate the least-depreciating cars on the market over a five-year period, and here are the five that topped the list in the US.
5. PORSCHE 911 - 37.2%
With depreciation of just 37.2% over five years—versus the industry-average 49.6%—the mighty Porsche 911 has not only stood the test of time (being in continuous production since 1963), it’s also one of the least-depreciating vehicles on the market.This rear-engine, rear and all-wheel drive sports car definitely stands out on this list, but the results speak for themselves: Porsche enthusiasts (and 911 enthusiasts in particular) love these cars, and the secondhand market is alive and well.
4. TOYOTA 4RUNNER - 36.5%
Coming in at number four and starting off the Toyota trio is the venerable Toyota 4Runner. Since 1983, this SUV has mastered a certain duality; being equally capable on and off the road. For this reason, the 4Runner has become a cult classic among hardcore Toyota fans.This popularity has translated into excellent resale value, with the 4Runner depreciating just 36.5% over five years. This makes it one of the least-depreciating SUVs on sale in the US, a trend which is likely to continue into the future.
3. TOYOTA TUNDRA - 35.9%
Pickup trucks account for four of the top 10 places on the list of the lowest-depreciating vehicles in the US, and the Toyota Tundra is near the top. With depreciation of just 35.9% over five years, the Tundra is a great buy due in part to its great resale value.Positioned in the ultra-competitive full-size pickup segment, the Tundra can’t quite keep up with some of its competitors in terms of towing or payload capability. Instead, the Tundra makes up for some of its shortcomings by providing steadfast reliability.
2. TOYOTA TACOMA - 32.0%
Not to be outdone by its larger sibling, the Toyota Tacoma pickup slightly edges out the Tundra, depreciating just 32% over five years. Just like its big brother, the Tacoma also has a record of legendary reliability and a dedicated fanbase.Also like the Tundra, the Tacoma competes against tough competitors in the form of the Chevrolet Colorado and Ford Ranger. All three are roughly comparable, but Toyota fans will likely choose the Tacoma for its proven record of reliability.
1. JEEP WRANGLER - 30.8%
Occupying first place as the lowest-depreciating vehicle on sale in the US is the unmistakable Jeep Wrangler (two-door) and Jeep Wrangler Unlimited (four-door). The Wrangler has been a common sight on American roads for decades, and its long legacy continues to this day.This legacy has certainly influenced its resale value, as the Wrangler has an average resale value of about 30.8%—30% for the Wrangler Unlimited and 31.5% for the regular Wrangler. This is nearly unmatched in the SUV segment with only the Toyota 4Runner coming close.
GETTING YOUR MONEY’S WORTH
Although the vast majority of cars heavily depreciate over five years, there are some that have a certain set of attributes which make them appealing enough to retain their value well. They’re good buys not only now, but five or more years down the line when it’s time to sell.All five vehicles on our list have proven themselves through many years of production, both in terms of capability and value. Do you think these vehicles deserve a spot on this list? Which of these five would you add to your garage? Leave a comment down below!
