Choosing a car that retains its value well is a smart financial decision. However, not all vehicles are created equal in terms of depreciation, and many cars lose a significant portion of their value quickly.
Understanding which cars hold their value best can help you make informed purchasing decisions that maximize your investment. This article highlights the top 10 cars that hold their value the strongest and the 25 vehicles with the highest depreciation.
Why Car Value Retention Matters
If you are interested in buying a used car or trading in your vehicle for one, it’s essential to consider buying a car that offers the best resale value. More often than not, you will be selling or trading in your car for a newer model.
That is where the car value retention comes in. Cars with good value retention will give you a better head start to your upgraded ride compared to ones will high depreciation rate.
So if upgrading to a newer model is in the future plan for you, buying a good value-retaining used car is the way to go. But for that, you need to ensure that the used vehicle has no hidden records or accident history – which you can check with a free VIN decoder tool.
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Factors Affecting Car Depreciation
Cars depreciate as soon as they are purchased. The minute they are driven off the dealership’s lot, they depreciate. The more you drive, the more the vehicle will depreciate, and even when you’re not driving, it’s still losing its value.
An average car will depreciate by at least 30% after one year of ownership and an additional 15% to 18% yearly. This means that by the time the vehicle was used for around five years, it would have depreciated by almost 60%. What factors are behind this depreciation?
Several factors contribute to just how much an automobile is worth over time, and in essence, they can tell how much a car depreciates. The most important factors are:
- Brand reputation and reliability: Car brands known for standing out for their reliability often experience slower depreciation rates and can fetch a reasonable sum even after a couple of years. If you want to retain the value of your car, opt-in for
- Market demands: Vehicles in high demand tend to depreciate more slowly, while those no longer popular or in demand among buyers will lose their value significantly.
- Vehicle maintenance: A well-maintained car will retain its value better than a neglected one.
- Age of the vehicle: The age of the vehicle also contributes to depreciation. The higher the vehicle’s mileage, the higher the wear and tear it may have suffered over the years and the less value it holds.
- Vehicle history: Maintaining your car’s value over the long term means driving safely. A car with severe damage and accident records may have less value than one without.
- Initial purchase price and features: Cars that start with a higher price tag may depreciate faster, especially if they are luxury models. Conversely, vehicles with desirable features and options can hold their value better.
On the bright side, cars tend to stop depreciating after a while; the older a vehicle gets, the less it depreciates. So, trading it in after a few years will result in a considerable loss. Now, let’s look at the top cars that hold their value.
Top 15 Cars That Hold Their Value
If you are looking for a vehicle that can hold its resale value, these are the top fifteen cars to consider:
1. Subaru Forester
The Subaru Forester is one vehicle with a low depreciation rate. After five years, it will hold 78% of its value and have a resale value of $27,481.
2. Nissan Frontier
Even after five years, the Nissan Frontier retains 77% of its value. A 5-year-old Nissan Frontier has a resale value of $29,942.
3. Chevrolet Silverado 3500HD
A Chevy Silverado 3500HD in good condition should have a 5-year resale value of $56,348 and retain 73% of its original value.
4. GMC Sierra 1500
A GMC Sierra 1500 will depreciate only 22% and hold 78% of its value after five years. This means it should have a 5-year resale value of $46,588.
5. Mitsubishi Mirage
A Mitsubishi Mirage will hold 73% of its long-term value after five years. You can expect to sell one for $13,975 after 5 years.
6. Mazda CX-5
After five years, this vehicle only loses 25% of its value. So, assuming a purchase price of $33,618, your vehicle will be worth around $25,150 after five years.
7. Mazda MX-5 Miata
The Mazda MX-5 Miata is a sports car that retains its value well, holding approximately 81% of its original price after five years, with a trade-in value of around $27,976.
8. Honda Accord
The Honda Accord is known for its reliability and strong resale value, retaining about 79% of its value after five years, leading to a resale price of approximately $29,394.
9. Ram 3500
The Ram 3500 is a heavy-duty truck that holds its value well, retaining about 72% of its original price after five years, with a resale value of around $56,810.
10. Toyota Tacoma
The Toyota Tacoma is highly regarded for its durability and resale value, retaining around 67% of its original value after five years, resulting in a resale price of about $28,000.
11. Ford F-250 Super Duty
The Ford F-250 Super Duty is another truck that performs well in terms of value retention, holding approximately 83% of its value after five years, with a resale value of around $62,448.
12. Ford F-350 Super Duty
Similar to the F-250, the Ford F-350 Super Duty retains about 81% of its value after five years, leading to a resale price of around $67,449.
13. Honda Odyssey
The Honda Odyssey is a family-friendly minivan with a retained value of 73% of its original value after five years, resulting in a resale value of approximately $33,185.
14. Volkswagen Tiguan
The Volkswagen Tiguan holds its value well, retaining around 72% of its original price after five years, with a resale value of about $25,076.
15. Hyundai Veloster
The Hyundai Veloster is a sporty compact car that retains about 70% of its value after five years, with a resale price of around $24,886.
These vehicles are recognized for their strong resale values, making them excellent choices for buyers who want to minimize depreciation. Used car buyers can also use this list as a guide for negotiations and can also use an online valuation tool to check any vehicle’s resale value.
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Top 25 Vehicles with the Worst Depreciation
Luxury cars are known to depreciate faster than regular or mainstream models. After five years, a luxury car will lose 48.1% of its original MSRP, compared to an average of 30% for non-luxury vehicles. Even worse are luxury sedans and luxury SUVs.
Let’s find out top 25 new cars with the worst depreciation among others in the market:
| Rank | Model | 5-Year Residual Value | Average Market Value in 5 years |
| 1 | Nissan LEAF | 56% | $21,575 |
| 2 | GMC Yukon XL | 57% | $48,670 |
| 3 | Hyundai Santa Fe | 58% | $21,641 |
| 4 | Kia Sorento | 60% | $24,281 |
| 5 | Buick Enclave | 61% | $32,399 |
| 6 | Jeep Grand Cherokee | 62% | $33,514 |
| 7 | Jeep Cherokee | 63% | $24,451 |
| 8 | Nissan Armada | 64% | $39,825 |
| 9 | Chevrolet Suburban | 65% | $45,848 |
| 10 | Nissan Altima | 65% | $18,919 |
| 11 | GMC Yukon | 65% | $47,066 |
| 12 | Chrysler 300 | 65% | $24,972 |
| 13 | Buick Encore | 65% | $17,679 |
| 14 | Chevrolet Trax | 66% | $20,046 |
| 15 | Nissan Maxima | 66% | $29,576 |
| 16 | Chevrolet Tahoe | 67% | $44,866 |
| 17 | Ford Escape | 69% | $24,276 |
| 18 | Mitsubishi Outlander | 69% | $24,379 |
| 19 | Nissan Murano | 70% | $28,734 |
| 20 | Dodge Challenger | 71% | $37,790 |
| 21 | Nissan Titan | 72% | $39,493 |
| 22 | Nissan Rogue | 72% | $25,495 |
| 23 | Nissan GT-R | 75% | $119,205 |
| 24 | Ford Mustang | 76% | $37,281 |
| 25 | Hyundai Accent | 77% | $17,416 |
12 Best Car Brands for Value Retention
What automaker holds its value best? When it comes to car brands that stand out in value retention, Toyota and Honda consistently rank among the best. However, there are other brands with models that retain their value over several years.
The top twelve brands to consider are:
- Subaru
- Mazda
- Ram
- Volkswagen
- Honda
- Toyota
- Mitsubishi
- Dodge
- Kia
- Jeep
- Lexus
- Porsche
Although these brands have built a reputation for reliability and quality, some models hold their value better than others. So, carry out intensive research on any vehicle before purchase.
You can also get a full VIN decoder to view historical records of the vehicle you are interested in – accident records, theft records, damages, title brand records, service history, and more.
Tips for Maximizing Your Car’s Value
Like any property, a car needs care at all times, especially if the owner plans to sell the car in the future or even change it with a new one. To ensure that your car maintains its value and comes at a good price, you need to follow these tips:
- Choose popular models and configurations for better demand.
- Stick to factory-installed features and avoid excessive customization.
- Maintain the vehicle as per the manufacturer’s schedule.
- If you notice any problems with the car, act fast and fix it before it causes further damage.
- It is equally important to keep a register and record of all the maintenance and repair works done on respective dates.
- Regularly clean and wash the car, both inside and out.
- Practice gentle driving to minimize wear and tear.
- Apply measures such as sunshades and car covers.
- Park in the garage or under the carport and other similar structures wherever possible.
Now you know how to keep your car in good shape and retain its value.
Conclusion
Selecting a car that holds its value well can yield substantial financial benefits and long-term savings. Most car buyers don’t know where to start during their search, but this guide summarizes it all for them.Considering factors like brand reputation, market demand, and the age of the vehicle can help buyers find cars that hold their value. If you are searching for a used vehicle, a VIN decoder and vehicle history report will point you in the right direction. Don’t forget to do your research!
