Which used cars retain their value best?
Top 9 Cars That Hold Their Value
As cars age, they slowly lose value. What cars in 2020 lose the least amount of value?
- Depreciation vs Residual Value
- Car Buyers Guide to Invoice Pricing and More
- Top 10 Cars for Resale Value
Here at Rydeshopper, we love value. It’s kind of our thing. So, when we got to looking at depreciation values of some of our favorite cars, we got a little excited to share what we found with you, our faithful audience. What we found is that some cars are even better at retaining their value than we thought.
Cars are driven, get dinged up, repaired, and driven some more. During that time, they lose much of their value. When you go to trade in or sell that vehicle, you learn the true price of ownership. Some makes and models retain a good deal of value, and depreciate at a less than average rate. If your car is on the following list, you have one of the Top 9 Cars For Depreciation. Here are the value kings and queens.
Top 9 Cars For Depreciation
- Subaru WRX
- Jeep Renegade
- Honda HR-V
- Chevrolet Colorado
- Honda Pilot
- Nissan Frontier
- Toyota 4Runner
- Toyota Tacoma
- Jeep Wrangler
#9. Subaru WRX
First Year Depreciation : 14.2% OR $4,115 MSRP: $27,495-$41,695
The Subaru WRX is no surprise here. Subaru has been building its reputation for value and reliability since their first little cars in 1968. Since then, the brand has continued to build value in itself as a trusty, reliable brand for everyone from Vermont rally teams to San Francisco’s moms.
What used to be a small Japanese brand that barely made an impact on US sales figures has evolved to be the fastest growing car brand in the US. What’s impressive is they still hold onto the values that made them famous here in the US in the first place: reliability and of course, AWD on every model.
The other side of the Subaru brand is motorsports, namely, rally racing. Since the early 90’s, Subaru has dominated the rally scene with their flat-four engines and symmetrical AWD. The WRX is the street going version of their dominating rally car, and has been known to hold its value due to its reliability, excellent value, year-round performance, and die-hard fans.
#8. Jeep Renegade
First Year Depreciation : 14.1% OR $2,897 MSRP Range: $22,275-$27,795
Jeeps are something of an anomaly for American vehicles. Where most American vehicles lose significant value as soon as you sign the dotted line, Jeep’s religious fan-base and known reliability have kept them above the standard depreciation mark.
What started with the more off-road ready Wrangler, the entire Jeep line-up has benefitted from the brand’s excellent reputation.
The Jeep Renegade, Jeep’s smallest offering, is a no brainer for depreciation limits. The low starting MSRP combined with the brand’s reputation means the depreciation values are low. Far lower than the other compact SUV’s on the market today.
#7. Honda HR-V
First Year Depreciation : 13.8% OR $2,885 MSRP Range: $20,820-$28,640
Riding a similar brand-wave as the Jeep Renegade, the Honda HR-V benefits from its older brothers and sisters in the line-up. Honda’s outstanding reliability marks have been bequeathed to the baby-SUV Honda HR-V.
Being the smallest SUV offered by Honda, and therefore, the most affordable, the HR-V suffers less of a hit in the first year of ownership, since there is simply less percentage to take away from the original price. To top this off, the little HR-V has proven itself to be an excellent performing SUV with top-notch reliability and value.
#6. Chevrolet Colorado
First Year Depreciation : 13.7% OR $4,154 MSRP Range: $21,300-$42,900
Pick-up trucks have traditionally always held their values better than SUVs or sedans, so it’s no surprise that we have three on this list. Small trucks take a reduced hit in the first year as they have less to lose of their original price.
The Chevrolet Colorado is a clear winner on the list. As a truck, it already retains excellent value and the lower starting price helps eliminate much of the initial depreciation that a new vehicle sees.
The Colorado has also been receiving excellent ratings which helps the resale value remain high. As the long term reliability ratings roll, people are seeing that the Colorado is a reliable, affordable workhorse of a truck, and that means its value stays high.
#5. Honda Pilot
First Year Depreciation : 13.7% OR $4,858 MSRP Range: $31,650-$49,720
Hondas have always had excellent resale value, mostly due to their outstanding reliability ratings. The Honda Pilot is no exception in this right. Receiving top picks from accredited raters the Pilot has proven itself to be an outstanding, practical third-row SUV.
While it may not be as pretty as some of the competition (Hyundai Palisade), it sure can perform. The reliability, fuel economy, and figures such as cargo space, are all superior to much of the competition.
What this means in the long is these reliable, practical cars have excellent resale value as they are able to do their intended task just as well as the day they drove off the lot.
#4. Nissan Frontier
First Year Depreciation : 13.7% OR $4,858 MSRP Range: $19,290-$37,150
The Nissan Frontier has been chugging along in the background for some years now. Lost in the light to the popular trucks like the Toyota Tacoma and the back-from-the-dead Ford Ranger and Chevrolet Colorado, the Nissan Frontier has continued to be a small, affordable, reliable truck.
There is simply not much to the little thing, and since the new Frontiers are relatively similar to the pre-owned options, there isn’t much incentive to buy new over pre-owned. Which is good for depreciation, but bad for Nissan sales. However, you, as the owner, benefit greatly.
#3. Toyota 4Runner
First Year Depreciation : 12.7% OR $4,605 MSRP Range: $36,120-$49,865
Toyota SUVs are known throughout the world to be the most reliable vehicles around. The long lasting abilities of Toyota SUVs have proven themselves from everywhere from rural China to central Africa.
The Toyota 4Runner also has benefited from the recent uptick of interest in off road-ready SUVs. The rugged off road look has taken off and everyone wants an SUV that looks like it can tackle the Moab Trails.
What all this means for the 4Runner is the value has nearly stayed the same from purchase. A 12.7% depreciation rate is outstanding and breaks down to a mear $383 a month in your first year, unbelievable numbers for a family SUV.
#2. Toyota Tacoma
First Year Depreciation : 10.4% OR $3,320 MSRP Range: $26,050-$46,665
The Toyota Tacoma pretty much checks all the boxes. It’s a small to midsize truck, off road ready, world renowned reliability, and outstanding practicality.
The reputation alone of the Tacoma is enough to ensure its spot on this list. People want to know their vehicle is going to last even through the apocalypse, and there aren’t many vehicles I would want to visit the end of the world in than a Tacoma.
People just can’t get enough of the “Taco”, and that means your resale value holds solid throughout the years. With a depreciation value of only 10.4%, you’re almost losing money NOT buying a Tacoma.
#1. Jeep Wrangler
First Year Depreciation : 8.9% OR $3,199 MSRP Range: $28,295-$38,625
The Jeep Wrangler is somewhat an anomaly on this list. They’re not entirely practical, they aren’t extremely comfortable, they aren’t even all that efficient, but what they are, is a strong brand name that has held true to its values.
The Wrangler has always held an excellent resale value. Even 20-year-old Jeeps still pull excellent profits. The off road ready fun nature of these vehicles has enabled them to hold onto a die-hard fan base, and the dependability to back it up. Jeep has not let their fans down with the new JL platform and has continued to be the best off road vehicle you can buy.
Today’s Jeeps are beginning to get more practical, even more reliable than they were already, and even more comfortable. Modern conveniences and safety features mean they have only increased their resale value throughout the years.
When shopping for a car, a practical shopper always looks at their vehicle as an investment. You will always be in the red when purchasing a vehicle – you still have to pay for the car that you used – but by buying smart, you can reduce the amount by a significant margin.
These top vehicles have proven themselves time and time again as being smart buys, and all earn a well-deserved Rydeshopper Smart Buy award.
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Which Used Cars Hold the Most Value?
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Which Used Cars Hold the Most Value?
The first two questions that pop into someone’s head when they’re considering selling their used car are “how much has my car depreciated?” and “how much money can I sell it for?”. The plain fact is that cars are not meant to be investments and usually don’t yield a great financial return when you factor in maintenance, repairs, interest on loans, and insurance payments. But that doesn’t mean you can’t understand the facts and myths about vehicle depreciation and use them to your advantage when selling your used car.
What Do I Need to Know About Car Depreciation?
Depreciation is the value a car loses over time, and it varies from car to car. Kelley Blue Book says that the average car loses 65% of its value within the first five years of ownership. Several factors determine depreciation, including the model’s popularity, perceived quality, supply, and whether or not the vehicle belongs to the current design generation.
The good news is research and consumer reports have shown that it’s financially smarter to buy used cars. When you buy a new car it loses on average 10% or more of its value the second it’s driven off the dealership lot. Couple that with the 7-12% yearly depreciation rate and within the first year of owning a new car it has depreciated a national average of 20%. If you happen to drive a lot, the loss of value will be even greater.
In an area like Voorhees, New Jersey, where the average resident is 27.3 years old, right now the used car market for both buying and selling is prime.
Where Can I Learn About Used Cars Pricing Guides?
Although a pricing guide is typically used by someone looking to buy a used car, it can come in handy as you attempt to sell your car as well. A pricing guide can give you a ballpark range for the price your specific car will sell for. To make things even easier for someone looking to sell their car, We Buy All Cars in NJ provides sellers with a free and accurate market value quote of what their car is worth by filling out the form on our sidebar. You can also call us at (856) 834-5558 and a representative can get all the necessary info over the phone to provide you with an accurate price quote as well.
What are the Differences in New and Used Car Values?
Traditionally, 2 and 3-year-old used cars are the best values for buyers because the price is lower than buying new and the car has already taken its biggest depreciation hit. But, it’s important to remember that factors like vehicle reliability, warranties and repairs, safety features, insurance, and interest rates also play big roles in the value of a used car.
- Reliability. As the craftsmanship of cars continues to elevate over time, used cars are lasting longer. A Consumer Reports survey shows that 5-year-old vehicles in present day have fewer problems than 5 year-old vehicles in 2007. Cars can reach up to 200,000 miles today without encountering any major overhaul.
- Safety. It’s true that newer cars have the latest bells and whistles, but the standard safety features have been present in cars for quite a few years now, such as antilock brakes, side airbags, and traction control.
- Warranties and Repairs. It goes without saying that newer cars require less maintenance and repair than an older car that is either out of warranty or getting very close to it. But again, even if an owner has to pay for more repairs and car parts, the occurrence is more infrequent than in the past and the savings is still greater than buying a brand-new vehicle.
- Interest Rates. Yes, loans for new cars have a lower interest rate, but what is not always known is that a normal used car loan that has a rate within one percentage point adds only about $7-$15 to your monthly payment.
- Insurance. This is pretty straightforward – you’ll pay less to insure a used vehicle than you would a new version of the same car.
Do Used Cars Hold Value?
Almost every used car and truck is more valuable today than they used to be. Polk Automotive Data Service showed that the average car on the road today is close to 11 years-old compared to 9 years-old 10 years ago. As fewer new cars are manufactured, the value of used cars is climbing and so is the popularity of older makes and models. Even pick-up trucks and minivans are being bought up at faster rates as the demand has risen 2.6% and 0.2% (respectively) over the past two years.
Which Used Cars Hold the Most Value?
Any age vehicle has value, and the following list of the most popular used cars over the past 10+ years compiled from Kelley Blue Book (KBB) and various consumer reports will prove it!
Overall ranking of used cars that have retained their value over time:
- Ford Escape. Retained value of 22.6%.
- Mazda Miata MX-5. Retained value of 23.3%.
- Subaru Forester. Retained value of 25.3%.
- Hyundai Elantra. Retained value of 26.6%.
- Nissan Altima. Retained value of 26.7%.
- Honda CR-V. Retained value of 30.7%.
- Toyota RAV 4. Retrained value of 35.4%
- Jeep Wrangler. Retained value of 36.7%.
- Toyota Corolla. Retained value of 39.5%.
- Toyota Tacoma. Retained value of 43.8%.
KBB’s Favorite Used Cars Under $8,000 include:
Kiplinger Special Report of 2015’s Best Used Cars based on value, safety, and performance include:
- 2013 Toyota Camry
- 2013 Chevrolet Tahoe
- 2011 Mercedes-Benz E-Class Sedan
- 2013 Kia Soul
- 2011 Lexus RX 350
- 2013 Cadillac CTS
- 2012 Audi Q5
- 2012 Honda Civic
- 2013 Hyundai Elantra GT
In today’s used car market, there’s good news for both buyers and sellers. It’s very easy to find a reliable car that suits your taste, personality, and budget. We Buy All Cars in NJ prides themselves on being able to pay the general public significantly more money than any dealer. Give us a call today at (856) 834-5558 to discuss any of your car needs with selling or buying a vehicle.
25 vehicles that hold value best over five years – iSeeCars.com
Especially when it comes to new vehicles that hold their value best in the years after purchase.
A study of more than 4.3 million new and used car sales by the shopping website iSeeCars.com identified 25 models that hold their value better than average. That is, depreciating less than the average new car, which loses 50.2 percent of value after five years.
The winners are mostly SUVs and pickup trucks, which comprise nine of the top 10, iSeeCars reports, and 20 of the 25 vehicles that retain as much or more value than average.
The No. 1 and No. 2 vehicles overall are the Jeep Wrangler Unlimited and Jeep Wrangler, which depreciated just 27.3 percent – retaining 72.7 percent of their value – over five years. The Wrangler is considered a sport utility vehicle or SUV.
The remainder of the top five and six of the top 10 vehicles that hold their value best are pickups.
Here are the top 25 vehicles listed by category and including overall rank, depreciation and amount of retained value after five years, based on the iSeeCars.com study:
1. Jeep Wrangler Unlimited – 27.3 percent depreciation, 72.7 percent retained value
2. Jeep Wrangler – 27.3 percent, 72.7 percent
6. Toyota 4Runner – 38.1 percent, 61.9 percent
12. Toyota RAV4 – 43.5 percent, 56.5 percent
14. Honda CR-V – 44.8 percent, 55.2 percent
16. Toyota Highlander – 46.2 percent, 53.8 percent
17. Subaru Forester – 46.6 percent, 53.4 percent
20. Honda Pilot – 49.2 percent, 50.8 percent
21. Subaru Outback – 49.7 percent, 50.3 percent
22. Dodge Durango – 49.7 percent, 50.3 percent
23. Kia Sportage – 50 percent, 50 percent
Jeeps topped the list because they “are known for retaining their value due to their enduring popularity, as well as their durability and performance across all terrains,” said Phong Ly of iSeeCars.com.
The iSeeCars spokesman attributed the presence of multiple Toyotas (three) and Hondas (two) in the top 10 because they have “a strong brand reputation for their reliability and durability, which helps contribute to their above-average value retention.”
3. Toyota Tacoma – 29.5 percent depreciation, 70.5 percent retained value
4. Toyota Tundra – 37.1 percent, 62.9 percent
5. Nissan Frontier – 37.8 percent, 62.2 percent
7. Chevrolet Silverado 1500 – 39.7 percent, 60.3 percent
8. GMC Sierra – 39.9 percent, 60.1 percent
10. Ram Pickup 1500 – 42.7 percent, 57.3 percent
13. Ford F-150 – 44.1 percent, 55.9 percent
“Pickup trucks depreciate the least of any vehicle segment at 41.3 percent, while cars depreciate at 54.1 percent and SUVs at 51.9 percent,” said Ly. “The lower depreciation for pickup trucks is likely because it is a growing vehicle segment and their popularity is keeping values high.”
9. Subaru Impreza – 42.3 percent depreciation, 57.7 percent retained value
11. Honda Fit – 42.9 percent, 57.1 percent
15. Dodge Challenger – 45.2 percent, 54.8 percent
18. Chevrolet Camaro – 48 percent, 52 percent
19. Toyota Corolla – 48 percent, 52 percent
24. Honda Accord – 50 percent, 50 percent
25. Toyota Sienna (minivan) – 50.2 percent, 49.8 percent
Of the lone passenger car on the overall top-10 list, the compact Subaru Impreza, Ly said, “The Impreza is the only compact vehicle in its class to offer standard all-wheel drive, making it one of the most affordable vehicles with that option. Subarus are also known for their safety and durability, which help contribute to the Impreza’s lower-than-average depreciation.”
The bottom line
“For consumers who buy new vehicles and sell them around the five-year mark, choosing a model that retains the most value is a smart economic decision,” said Ly. Although, on average, new-car purchasers keep their vehicles about seven years.
Understanding a vehicle’s depreciation is an important factor in helping both new- and used-car shoppers make an informed purchase decision, according to iSeeCars.
“If you plan on trading in or selling your vehicle after a few years, a car that retains most of its value can put more money in your pocket for your next car purchase,” said Ly. “If you are a used car shopper, choosing a car that has already taken a depreciation hit can provide you with a substantial deal.”
Mark Macesich is an experienced writer and editor who has written extensively about customer auto finance, car research and shopping, car-purchasing decisions, consumer news and insights, and auto-dealer-related subjects. He has spent more than 20 years in print and online journalism, that includes writing news and feature articles, columns, infographics and special sections.