Cars With the Lowest Depreciation Over 5 Years

Depreciation is the silent killer of car ownership. The average car loses 60% of its value over 5 years—that's $24,000 on a $40,000 vehicle. But some cars resist depreciation far better than others. Here are the champions.

Understanding Depreciation

The Depreciation Curve

Typical depreciation pattern:

• Year 1: 20-25% loss
• Year 2: 15% loss
• Year 3: 12% loss
• Year 4: 10% loss
• Year 5: 8% loss
• 5-Year total: ~60% loss

What Affects Depreciation

Factors that improve resale:

• Brand reputation (Toyota, Honda, Porsche)
• Reliability track record
• Supply constraints
• Unique capability (off-road, towing)
• Enthusiast following
• Popular colors and options

Factors that hurt resale:

• Poor reliability history
• Oversupply (fleet sales, heavy incentives)
• Rapid technology changes (EVs)
• Niche appeal
• Luxury sedans (oversupply of used)

Cars With Best 5-Year Depreciation

#1: Toyota Tacoma

5-Year Retention: 65-70%

The undisputed depreciation king.

• New Price: $30,000 - $48,000
• 5-Year Value: $20,000 - $33,000
• Depreciation: ~$12,000-$16,000

Why: Cult following, proven reliability, constrained supply, off-road capability.

#2: Jeep Wrangler

5-Year Retention: 60-65%

Iconic design defies depreciation.

• New Price: $32,000 - $55,000
• 5-Year Value: $20,000 - $35,000
• Depreciation: ~$13,000-$21,000

Why: Unique capability, strong community, timeless appeal.

#3: Porsche 911

5-Year Retention: 60-65%

Sports car that's also an investment.

• New Price: $115,000 - $200,000+
• 5-Year Value: $75,000 - $130,000+
• Depreciation: ~$45,000-$75,000

Why: Icon status, limited production, collector appeal.

#4: Toyota 4Runner

5-Year Retention: 58-63%

Body-on-frame reliability.

• New Price: $40,000 - $55,000
• 5-Year Value: $24,000 - $34,000
• Depreciation: ~$17,000-$22,000

Why: Off-road capability, Toyota reliability, loyal following.

#5: Honda Civic

5-Year Retention: 55-60%

Mainstream champion.

• New Price: $24,000 - $31,000
• 5-Year Value: $13,000 - $18,000
• Depreciation: ~$11,000-$14,000

Why: Legendary reliability, fuel efficiency, broad appeal.

#6: Toyota RAV4

5-Year Retention: 54-58%

America's best-selling SUV holds strong.

• New Price: $30,000 - $42,000
• 5-Year Value: $16,000 - $24,000
• Depreciation: ~$14,000-$18,000

Why: Reliability, practicality, hybrid efficiency.

#7: Subaru Outback

5-Year Retention: 52-56%

All-weather capability pays off.

• New Price: $30,000 - $42,000
• 5-Year Value: $16,000 - $23,000
• Depreciation: ~$14,000-$19,000

Why: AWD standard, loyal following, practical design.

#8: Honda CR-V

5-Year Retention: 52-56%

Compact SUV benchmark.

• New Price: $30,000 - $40,000
• 5-Year Value: $16,000 - $22,000
• Depreciation: ~$14,000-$18,000

Why: Reliability, resale reputation, practical size.

#9: Toyota Corolla

5-Year Retention: 50-55%

The reliable choice.

• New Price: $22,000 - $28,000
• 5-Year Value: $11,000 - $15,000
• Depreciation: ~$11,000-$13,000

Why: Bulletproof reliability, low cost of ownership.

#10: Lexus RX

5-Year Retention: 50-54%

Luxury that holds value.

• New Price: $50,000 - $65,000
• 5-Year Value: $26,000 - $35,000
• Depreciation: ~$24,000-$30,000

Why: Lexus reliability, broad luxury appeal, hybrid option.

Worst 5-Year Depreciation

Luxury Sedans (Value Destroyers)

Vehicle5-Year RetentionLoss on $80K BMW 7 Series30%$56,000 Mercedes S-Class32%$54,400 Maserati Ghibli28%$57,600 Jaguar XF30%$56,000 Lincoln Continental32%$54,400

Why Luxury Sedans Depreciate So Fast

High lease returns flood used market

Expensive maintenance scares used buyers

New models with better tech constantly launching

Status appeal diminishes with age

Electric Vehicles (Mixed Results)

Vehicle5-Year Retention Tesla Model 355-60% Tesla Model Y55-60% Nissan Leaf35-40% Chevy Bolt40-45% BMW i438-42% Tesla exception: Strong brand, OTA updates, Supercharger network keep values higher.

Depreciation by Vehicle Type

Best Retaining Segments

Trucks: 55-70% retention

Body-on-frame SUVs: 55-65% retention

Compact cars (Japanese): 50-60% retention

Sports cars (Porsche): 55-65% retention

Worst Retaining Segments

Luxury sedans: 30-40% retention

Full-size sedans: 35-45% retention

Electric vehicles (non-Tesla): 35-50% retention

Minivans: 40-50% retention

The Cost of Depreciation vs Other Expenses

On a $40,000 car over 5 years: ExpenseAverageGood RetentionPoor Retention Depreciation$24,000$16,000$28,000 Fuel$10,000$10,000$10,000 Insurance$8,000$8,000$8,000 Maintenance$4,000$3,000$6,000 Total$46,000$37,000$52,000

Choosing a low-depreciation car saves $15,000 over 5 years.

How to Minimize Depreciation

Buy Smart

Research resale data before purchase

Choose popular colors (white, black, silver, gray)

Get desirable options (sunroof, leather, safety tech)

Avoid niche configurations (unusual colors, rare options)

Maintain Meticulously

Follow service schedule exactly

Keep all records (adds value at sale)

Fix issues promptly (small problems compound)

Detail regularly (appearance matters)

Control Mileage

Each mile reduces value:

• Under 60,000 (5 years): Best prices
• 60,000-75,000: Slight penalty
• Over 75,000: Significant impact

Time Your Sale

Best times to maximize value:

• Before major redesign announcement
• Spring (tax refund season)
• Before warranty expires
• When vehicle type is in demand (trucks in fall)

The Depreciation Math When Buying

Scenario: 5-Year Ownership

Option A: Toyota RAV4 ($38,000)

• 5-year value: $20,500 (54%)
• Depreciation cost: $17,500

Option B: Nissan Murano ($40,000)

• 5-year value: $16,000 (40%)
• Depreciation cost: $24,000

Difference: $6,500 more depreciation on the "cheaper" Nissan

The RAV4 costs less to own despite similar purchase price.

Using Depreciation Strategically

Buy Used, Beat Depreciation

Buying a 2-3 year old car lets the first owner absorb the steepest depreciation:

• New Toyota RAV4: $38,000
• 3-year-old RAV4: $24,000 (37% less)
• Your 5-year depreciation: Only ~$9,000

You get the same car for less total cost.

Lease High-Depreciation Vehicles

If you must have a luxury sedan:

• Buy: You absorb 60%+ depreciation
• Lease: Manufacturer subsidizes with residual
• Leasing often makes expensive-to-own cars more affordable

Calculate Your Depreciation

Use our tools:

• Depreciation Calculator
• Trade-In Value Estimator
• Total Cost of Ownership

Depreciation is the invisible expense that costs more than fuel, insurance, and maintenance combined. Choosing vehicles that hold value transforms car ownership from a money pit into a reasonable expense.