Best And Worst Cars For Depreciation
Understanding depreciation is essential for any car buyer, as it can greatly impact long-term ownership costs and resale value. It's no secret that some vehicles hold their value a lot better than others, and being able to make the right choice is crucial.
These are the cars that hold their worth and those that experience a more rapid decline, from luxurious European sedans to compact SUVs.
Best: Porsche 911
Generally speaking, luxury cars tend to be among the worst offenders in terms of depreciation. This is not the case when it comes to the 911, Porsche's flagship sports car.
The Porsche 911 only loses around 13% of its original value within the first five years of ownership. That's around $20 000 when factoring in its high MSRP.
Worst: Audi A6
It's no secret that premium sedans tend to lose value incredibly quickly. The Audi A6, although a solid pick in its price range, is one of the absolute worst offenders when it comes to depreciation.
Owners can expect to lose over 58% of the car's original MSRP within five years of driving off the lot. That's a whopping $35 000 drop for the base model!
Best: Dodge Challenger
Believe it or not, the Dodge Challenger is actually one of the least depreciating new muscle cars. Its five-year depreciation is still a little higher than the Ford Mustang and the Camaro, though.
In fact, a brand-new Dodge Challenger will lose roughly 24% of its original value within five years of driving off the lot. This equates to a little over $10 000 for the base model.
Worst: Volvo S60
The Swedish automaker has gone through an impressive transformation within the last few years. While Volvos have always been known as some of the safest automobiles in the world, the latest models are renowned for their luxury features too.
Owning a brand-new Volvo can get quite expensive, however. An S60 sedan will lose over 57% of its original sticker price within the first five-year period.
Best: Jeep Wrangler
Jeep's flagship midsize SUV is yet another vehicle that's one of the leaders when it comes to low depreciation. It's a solid pick for anyone looking for a mix of practicality and off-roading capabilities.
A brand-new Jeep Wrangler will only lose around 9.2% of its original MSRP within the first five-year period. That's less than $2800, considering a brand new 2022 Wrangler begins at $29 995.
Worst: BMW X5
Like upscale sedans, lavish SUVs are among the quickest-depreciating cars you can buy. Naturally, the ones sold by premium German automakers
The BMW X5 is one of the worst offenders, with a 60% drop in value within the first five years of ownership. That equates to over $40 000, and that's just for the base model!
Worst: Nissan Leaf
The Leaf is a compact electric car that's been around for over a decade. The latest, second generation of the car hit the market for the 2017 model year. Starting at under $30 000, it remains one of the cheapest EVs on the market.
When it comes to rapid depreciation, the Nissan Leaf takes the cake. Owners can expect to lose more than 65% of the car's original MSRP within the first five years of driving off the lot!
Worst: Jaguar XF
The Jaguar XF may seem like a solid pick within its price range, at least at first sight. After all, this British sedan comes with plenty of luxurious features and a comfy ride at a relatively low starting price of just under $50 000.
Awfully rapid depreciation is one of the biggest disadvantages of the XF, though. Owners can expect to lose as much as 60% of the car's original sticker price in the first five-year period.
Best: Ford Mustang
The Ford Mustang, America's beloved pony car, has been a vital part of the Blue Oval lineup ever since its initial debut in the early 1960s. The latest edition of the Mustang is superior to all of its predecessors, at least in terms of performance.
The Ford Mustang doubles as a vehicle that depreciates rather slowly, especially considering its sporty nature. Owners can expect the value to drop by roughly 21%, or around $7300 for the base model.
Worst: BMW 7-Series
The 7-Series first debuted as the answer to the Mercedes-Benz S-Class. This luxurious sedan has always been the automaker's most lavish land yacht.
As one can expect, a German luxury sedan will depreciate awfully quickly. In fact, buyers can lose at least $60 000 within the first five years of ownership, which is over 60% of the car's MSRP.
Best: Toyota Tundra
Buyers fell in love with the Toyota Tundra directly from its initial debut for the 2000 model year. This full-size truck is renowned for both its dependability and low maintenance costs.
After picking a brand new Tundra from the dealership, you can expect to lose around 19.5% of its original value within the first five-year period.
Worst: Maserati Ghibli
The latest version of the Ghibli has been around for roughly a decade. Maserati first introduced this lavish sedan as a more spacious alternative to the flagship Gran Turismo. Buyers can pick from a variety of motors, including a powerful V8, a fuel-efficient diesel, or even a four-cylinder hybrid.
In terms of depreciation, the Ghibli is similar to most upscale sedans it competes with. Buyers can expect to lose roughly 44% of the car's original value within the first five years of ownership.
Worst: BMW i3
A BMW i3 is the perfect eco-friendly electric car for the city commute. With a range of around 150 miles on a single charge, it's best not to take one on longer road trips.
On average, a BMW i3 will lose roughly 40% of its original value within five years of driving off the lot. As a result, the resale value for a 5-year-old i3 is under $32 000 before extra options.
Best: Toyota 4Runner
The 4Runner is an extremely reliable SUV that has been around ever since the 1980s. In fact, this truck is often considered to be one of the longest-lasting automobiles money can buy.
Exceptional off-roading capabilities and durability are far from the only upsides of the 4Runner. Its low depreciation is yet another reason many buyers flock to this mid-size SUV each year.
Worst: Mercedes Benz S-Class
We have already mentioned that the BMW 7-Series, a German luxury sedan, is among the quickest-depreciating cars in the world. The same goes for its direct competitor, the Mercedes Benz S-Class.
Many wealthy buyers are drawn to the car's innovative safety and comfort features, as well as undeniable class. However, owners of a new S-Class should expect the vehicle to lose roughly 70% of its original value within the first five years of ownership.
Best: Toyota Land Cruiser
The Land Cruiser has rightfully earned its reputation as one of the most durable and capable SUVs on the planet ever since its initial debut back in the early 1950s.
The car's low depreciation is unarguably one of its key selling points, especially while considering its affordable maintenance and excellent reliability ratings. A brand-new Land Cruiser will only lose around 24% of its value within the first five years of ownership.
Worst: Ford Fusion Energi
The plug-in hybrid variant of the Ford Fusion was first introduced for the 2013 model year. The car's initial $40k price tag was reduced by $5k just a year after its release. Nonetheless, the Fusion Energi has remained one of the fastest-depreciating cars in the world.
Owners of this fuel-efficient hybrid should expect to lose around 67% of the vehicle's sticker price within the first five years of ownership.
Best: Subaru WRX STI
Many buyers tend to stay away from buying new high-performance worries, as they are worried that the vehicles will not hold their value well. This is not the case for the legendary Subaru WRX STI.
In fact, if you buy a brand new WRX STI, it should only lose around 35% of its sticker price within the first five years of ownership.
Worst: Volkswagen Jetta
The Jetta has been around since the late 70s. Renowned for its practicality and efficiency, the Jetta became a hit around the globe.
One of the biggest downsides of owning a new Jetta has got to be its quick depreciation. In fact, the vehicle loses around 63% of its initial value within the first five-year period.
Best: Honda CRV
Honda's flagship compact SUV debuted back in the mid-90s. The current generation is positioned between the smaller HRV and the larger Honda Pilot.
The latest, sixth-generation, only debuted in 2022. However, it should follow in the footsteps of its predecessor and hold its value well. On average, the CRV loses around 38% of its MSRP within the first five years.
Worst: Chrysler 200
The 200 was released as a successor to the Sebring a little over a decade ago. The vehicle was offered with an inline-four, though buyers could upgrade to the more powerful Pentastar V6 engine. A convertible body style was offered, too.
One of the biggest downsides for new owners was the car's rapid depreciation. The Chrysler 200 would lose 76% of its original value in five years.
Best: Porsche Cayenne
Although most luxury vehicles tend to depreciate quickly, Porsche is an exception to the rule. In fact, virtually all vehicles the German automaker offers hold their value well. This includes the Cayenne, Porsche's flagship SUV.
Potential buyers will be pleased to hear that the Cayenne is one of the slowest-depreciating luxury SUVs money can buy. It will lose only around 44% of its original MSRP in the first five years of ownership.
Worst: Nissan Maxima
Unfortunately, Nissan's flagship sedan is infamous for its notorious depreciation. Buyers are drawn in by the car's perfect balance of sportiness and practicality and tend to overlook how quickly this vehicle loses its value.
Owners of a brand-new Maxima should expect the vehicle to maintain just a quarter of its original value just five years after driving off the lot.
Best: Subaru Outback
The Subaru Outback was initially launched in the mid-90s as a model built on the Legacy wagon. The model eventually transformed into the SUV, though it still shares the platform with the Legacy sedan.
Not only is the Subaru Outback comfy and practical, but it is also known for its slow depreciation. In fact, buyers can expect a brand-new Outback to lose less than a third of its initial value within the first five-year period.
Worst: Kia Optima
A combination of a sporty exterior with a fuel-efficient powerplant is what makes the Kia Optima desired by buyers around the globe. The automaker is currently offering the fifth generation of the car, which debuted for the 2021 model year.
One of the major disadvantages of the Optima is its quick depreciation. In fact, a brand-new Optima will lose 74% of its value within five years of driving off the lot.
Best: Honda Civic
The Civic is Honda's entry-level car in most markets. It is available as a sedan, coupe, or hatchback; and features multiple engine options, ranging from small fuel-efficient powertrains to larger, more powerful engines.
It's no surprise that the Civic holds its value pretty well. Buyers can expect to lose around 42% of their original value within the first five years of owning one.
Worst: Mercedes Benz E-Class
The Mercedes Benz E Class is the German automaker's upscale sedan, positioned beneath the previously mentioned S-Class. Like its even more luxurious sibling, the E Class is one of the worst cars for depreciation.
Buyers who are thinking of getting a brand new E-Class should expect to lose around 74% of the car's initial value within the first five-year period.
Best: Lexus RX
The Lexus RX has successfully established itself as a frontrunner in the highly competitive luxury vehicle market. The RX boasts an air of sophistication and refinement that instantly appeals to discerning car buyers, available for a lower price than its European competitors.
A key benefit of the Lexus RX is the fact that the vehicle holds its value very well. In fact, it only loses around 44% of the original MSRP within the first five years.
Worst: BMW 3-Series
The BMW 3 Series is a true icon in the world of luxury sports sedans. Many petrolheads consider it to be the ultimate sports sedan in terms of performance, style, and driving pleasure.
Similar to the majority of European luxury sedans, the 3-Series is notorious for quick depreciation. On average, it will lose 73% of its sticker price within the first five years.
Worst: Chevrolet Impala
The Impala is an iconic nameplate that dates back to the mid-20th century. Although the latest Impala is quite different than the renowned classics, both are known for their comfortable ride and great performance.
What the Impala is not so great at, however, is maintaining its value. A new Impala will lose around 73% within the first five years of ownership, making it one of the worst cars for depreciation in the US.
Best: Toyota Highlander
The Toyota Highlander is a top choice among families and adventure-seekers alike. This three-row SUV can comfortably seat up to eight passengers. Under the hood, the Highlander offers a range of capable and fuel-efficient engine options to choose from.
Like the other SUVs that Honda offers, the Highlander is one of the best cars for depreciation. Buyers will only lose around half of the car's original value after five years of ownership.
Worst: Ford Taurus
The Ford Taurus is a classic full-size sedan that was known for its spacious interior, smooth ride, and dependable performance. Though it has been discontinued, it remains a well-regarded choice for those seeking comfort and reliability in a sedan.
Back when it was new, the Ford Taurus was one of the worst cars for depreciation. It would lose roughly 70% of its original value within five years of driving off the lot.
Best: Acura RDX
The Acura RDX offers a perfect blend of style, performance, and advanced technology. With its refined interior, agile handling, and upscale features, the RDX is a top choice in its class.
Buyers looking for a luxurious compact SUV that doesn't depreciate quickly should consider going for the RDX. That's because it will only lose around 40% of its sticker price within the first five-year period.
Worst: Audi A8
The Audi A8 is Audi's land yacht that boasts sophistication and elegance. The vehicle was developed to compete with the likes of the BMW 7-Series and the Mercedes S-Class, serving as the brand's top-of-the-line luxury model.
Similar to its direct competitors, the Audi A8 will lose its value at an alarming rate. In fact, buyers should expect to lose around 70% of the original sticker price within five years of ownership.
Best: Porsche Macan
The Macan was introduced as Porsche's second SUV following the massive success of the Cayenne. The car is known for its exceptional performance and luxury feel, as well as its slightly smaller size compared to the Cayenne.
Like its larger cousin, the Macan can hold its value very well. Buyers should expect to lose around 45% of the original price tag within the first five years of ownership.
Worst: DS 9
This is a quirky vehicle that you may have never heard of, as it was never offered in the US. DS, formerly a part of Citroen, is a French luxury automaker that debuted back in 2009.
The DS 9 car is notorious for its significant depreciation due to several key factors. First, it suffers from poor overall build quality and reliability issues, leading to costly repairs and frequent maintenance requirements, which discourages potential buyers and hampers resale value. Second, the DS brand has struggled to establish a strong reputation in the automotive market, resulting in lower demand and a smaller pool of interested buyers. Additionally, the rapid advancement of automotive technology and design trends quickly renders the DS 9 outdated in comparison to newer models, further accelerating its depreciation rate.
