Most cars lose about 10% of their value just one month after being driven off the lot. (1). As a discerning car buyer, you want to minimize this loss so you can keep more of your investment in your new vehicle.
Luxury sedans are the biggest offenders when it comes to depreciation. Brands like Maserati and BMW are losing value at an exponential rate. This is to be expected, as those who buy a luxury car want a luxury experience, and buying a used car on Craigslist doesn’t exactly meet that standard. Combined with expensive repairs, it’s therefore difficult to resell foreign and luxury cars.
Trucks and SUVs retain their value much better. For one thing, these vehicles are usually built for tough, practical use. This means that manufacturers equip them with greater durability. Factors like brand loyalty and design also play a role. The Jeep Wrangler, for example, has one of the highest resale values on the market because it’s popular with SUV owners and has a timeless, iconic design. (2)
Car brands that hold their value best are known for their long-term reliability and safety. Brands like Honda and Toyota are usually on the list of cars with the best resale value because they’ve been making extremely reliable cars for a long time.
If you’re shopping for a new car and want to make sure you’re making a good investment, resale value is an important factor to consider. Here are 10 new cars that will hold their value over the years.
1. Jeep Wrangler
While other Jeep models have fairly low resale values, the Wrangler is an exception. Used Jeeps are often as expensive as brand new models. One reason for the incredible resale value is the enthusiast culture that surrounds the Wrangler. Hobbyists and off-road enthusiasts look for specific Wrangler models with the body styles they prefer. Newer versions of the Wrangler have given its rugged, off-road shell an increasingly luxurious interior. This makes it a popular everyday car.
Average 5-year depreciation: $30.9% Depreciation over 5 years: $12,168
2. Toyota Tacoma
As mentioned earlier, reliability is the biggest factor contributing to resale value. The reputation of reliability increases the demand for a used car.
Perhaps more than anything, Toyota has a reputation for building incredibly reliable cars and trucks. The Tacoma, in particular, enjoys a cult following for its ability to last, even with high mileage. An older Tacoma with more than 200,000 miles on the odometer still fetches around $5,000 to $6,000.
The right equipment and reliability also boost resale value on new cars. The new 4Runner features an 8-inch touchscreen with Apple Car Play and Amazon Alexa capabilities. In addition, all models are equipped with a panoramic monitor and a multi-terrain monitor.
Average 5-year depreciation: $32.4% Depreciation over 5 years: $10,496
3. Porsche 911
Exotic cars aren’t known for their reliability or resale value. People who buy cars like the Porsche 911 buy performance. They buy the sleek, red-blooded masculinity that offers the power of 640 horses.
Somehow, Porsche has managed to create a high-performance sports car that’s expensive to repair but very reliable. In fact, Porsche has become known for its reliability in recent years. This, along with the high demand for classic Porsches, makes the Porsche 911 a safe value for resale.
Average five-year depreciation: 36.0% $ Difference: $56,133
4. Subaru WRX
Subaru is another car brand known for reliability. Although the Forester and Outback are known for being high-end family cars, the WRX still holds its value better than any other car Subaru makes.
The WRX isn’t for everyone. Its odd, stiff driving style, loud engine, and general quirkiness make it despised by some drivers. However, that very quirkiness has spawned a small army of WRX loyalists who claim it’s the best, most affordable sports car you can buy.
Aside from being an affordable sports car, Subaru’s reputation as a reliable Japanese automaker gives the WRX great value.
Average 5-year depreciation: $39.8% Depreciation over 5 years: $14,192
5. Dodge Challenger
If there’s one car that deserves the prefix “muscle,” it’s the Challenger. The Challenger is blunt. It’s not economical. It’s not a “safe” car, and it’s not family-friendly. But it does what it was built to do very, very well, and that’s provide an exciting driving experience in a rugged, attractive package.
The new Challenger remains one of the best cars when it comes to resale value. That’s because its classic styling and legendary performance make it a collector’s item among enthusiasts. The new models offer features such as integrated infotainment systems and ventilated seats.
Average 5-year depreciation: $40.6% Depreciation over 5 years: $16,303
6. GMC Canyon
GMC is known for producing a rugged workhorse of a pickup truck. The Canyon is GMC’s mid-size pickup model and offers a great value for people who want the versatility of a daily driver and a capable work truck. The Canyon is available with either a 4-cylinder or 6-cylinder engine to accomplish both of these goals.
While the Canyon is a capable truck, it’s not as capable off-road as the Tacoma. It’s better suited for hauling supplies from the hardware store.
The interior of most trucks is less than stellar, but the Canyon offers some pleasant surprises. The interior is quiet, has a 4-inch screen and an impressive design.
Average 5-year depreciation: 41.2% $ Depreciation over 5 years: $16,115
7. Toyota Tundra
The Toyota Tundra is the pickup for people who really want a pickup. It’s the perfect vehicle for off-roaders, tow trucks, and outdoor enthusiasts. With Toyota’s signature reliability, a new Tundra is one of the best cars you can buy as a long-term investment. (3)
Average 5-year depreciation: 37.0% $ Depreciation over 5 years: $17,020
8. Nissan Frontier
The 2020 Frontier is exactly the same as it was 14 years ago, minus a few facelifts and the new powertrain. Although the vehicle’s interior (and overall driving experience) shows its age, it’s still a great mid-size pickup. The Frontier will continue to hold its value over time due to its reliability and practicality. (4)
Average 5-year depreciation: 43.5% $ Depreciation over 5 years: $12,823
9. Volvo XC40
Volvo’s vehicles have come a long way lately in terms of styling. The XC40 is a luxury SUV that beats every other vehicle in its class in terms of resale value. Volvo buyers keep coming back for safety, among other things. The XC40 has active safety features like collision warnings and automatic emergency braking. It even has an assisted driving mode. (5)
Average 5-year depreciation: $34.6% Depreciation over 5 years: $11,660
10. Toyota Avalon
A larger, de-tuned engine in this luxury sedan means longevity and high resale value. Plus, with its soft leather seats and buttery smooth acceleration, the Avalon offers one of the most comfortable driving experiences around.
Average 5-year depreciation: $31.1% Depreciation over 5 years: $11,157
While some people may have a bias towards one or two automakers, there are great models from almost every brand. Any of these vehicles is a safe bet for reliability, longevity and value.
Sources
- https://www.carfax.com/blog/car-depreciation
- iseecars.com
- https://www.gearpatrol.com/cars/g34573934/cars-lowest-depreciation-wrangler-tacoma/
- https://www.autobytel.com/car-buying-guides/features/10-car-brands-with-best-resale-value-131284/
- https://www.kbb.com/best-cars/best-resale-value-full-size-car/
