Every new vehicle depreciates over time, but some cars have a higher average depreciation rate than others. This could be because of vehicle type, reliability ratings, or even demand. While it’s tough to know exactly how much a car will depreciate over time, you can get an idea based on past performance. Automotive website iSeeCars.com looked at this and determined which vehicles have the best and worst average depreciation rates. Here’s what their findings look like:
Cars that Retain the Most Value
According to iSeeCars.com, these are the top 10 vehicles that retained their value the best over a recent five-year period:
- Jeep Wrangler Unlimited: 27.3% average five-year depreciation (2016 model pictured)
- Jeep Wrangler: 27.3% average five-year depreciation
- Toyota Tacoma: 29.5% average five-year depreciation
- Toyota Tundra: 37.1% average five-year depreciation
- Nissan Frontier: 37.8% average five-year depreciation
- Toyota 4Runner: 38.1% average five-year depreciation
- Chevrolet Silverado 1500: 39.7% average five-year depreciation
- GMC Sierra 1500: 39.9% average five-year depreciation
- Subaru Impreza: 42.3% average five-year depreciation
- Ram 1500: 42.7% average five-year depreciation
Cars that Retain the Least Value
In addition, iSeeCars.com ranked these 10 vehicles as having the highest depreciation rate:
- Nissan LEAF: 71.7% average five-year depreciation (2016 model pictured)
- Chevrolet Volt: 71.2% average five-year depreciation
- BMW 7-Series: 71.1% average five-year depreciation
- Mercedes-Benz S-Class: 69.9% average five-year depreciation
- Ford Fusion Energi: 69.4% average five-year depreciation
- BMW 6-Series: 68.3% average five-year depreciation
- BMW 5-Series: 67.3% average five-year depreciation
- Mercedes-Benz E-Class: 67.2% average five-year depreciation
- Jaguar XJL: 66.4% average five-year depreciation
- Chevrolet Impala: 66.2% average five-year depreciation
Lowest and Highest Depreciation Vehicles by State
Using the 20 most populated states in the US, here are the cars with the lowest and highest depreciation rates:
State | Model | Avg. Five-year Depreciation (lowest) | Model | Avg. Five-year Depreciation (highest) |
Arizona | Jeep Wrangler Unlimited | 25% | Nissan LEAF | 72.1% |
California | Jeep Wrangler Unlimited | 24.7% | Nissan LEAF | 72.4% |
Florida | Jeep Wrangler | 26.3% | Nissan LEAF | 73.1% |
Georgia | Jeep Wrangler | 25.1% | Chevrolet Volt | 72.1% |
Illinois | Jeep Wrangler | 26.7% | Mercedes-Benz S-Class | 71.1% |
Indiana | Jeep Wrangler Unlimited | 27.3% | Chevrolet Volt | 71.4% |
Massachusetts | Jeep Wrangler Unlimited | 27.6% | Chevrolet Volt | 71.7% |
Maryland | Jeep Wrangler Unlimited | 27.8% | Chevrolet Volt | 70.8% |
Michigan | Jeep Wrangler Unlimited | 27.8% | Mercedes-Benz S-Class | 73.1% |
Missouri | Jeep Wrangler Unlimited | 29.9% | Mercedes-Benz S-Class | 72.6% |
North Carolina | Jeep Wrangler | 26.6% | Chevrolet Volt | 71.3% |
New Jersey | Jeep Wrangler | 29.4% | BMW 7 Series | 72.7% |
New York | Jeep Wrangler | 30.7% | Chevrolet Volt | 72.6% |
Ohio | Jeep Wrangler | 28.3% | Nissan LEAF | 72.5% |
Pennsylvania | Toyota Tacoma | 27.3% | BMW 7 Series | 71.1% |
Tennessee | Jeep Wrangler Unlimited | 26.2% | Chevrolet Volt | 71.4% |
Texas | Jeep Wrangler | 26.2% | Nissan LEAF | 71.6% |
Virginia | Jeep Wrangler Unlimited | 27.8% | BMW 7 Series | 71.5% |
Washington | Jeep Wrangler Unlimited | 20.3% | Nissan LEAF | 72.4% |
Wisconsin | Jeep Wrangler | 29.6% | Chevrolet Volt | 72% |
Why Does Depreciation Matter?
Although depreciation is put on the back burner for many car buyers, it’s something they should pay attention to unless they’re planning on keeping a vehicle well past the time it’s paid off. Depreciation is constant, and can’t be stopped. In fact, as soon as the car leaves the dealer's lot, it begins to depreciate. Within the first year of ownership, a new vehicle typically loses around 20 of its value, and around 50 to 60 percent of its value is lost over five years. Depreciation is important if you buy a new car and plan on trading it in or selling it within three to five years of buying it – as it could make a big difference in how much you could sell it for.
The Bottom Line
Vehicles depreciate over time, and while some depreciate at a slower rate than others, you can’t prevent it from occurring. What you can do is keep up with regular maintenance so your car retains as much value as possible during the time you own it.
If you need to finance a new or used vehicle, or have a car you want to trade in, but worry your bad credit is in the way, let Auto Credit Express help. We help car buyers find the financing they need by setting them up with local special finance dealerships. Start the process today by filling out our secure and free auto loan request form.