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In inflationary times, it’s increasingly important that consumers look for value in the things they buy. This is especially true when it comes to high-priced items like cars.
A recent report from vehicle research site iSeeCars.com shows which vehicles keep their value after five years.
The average five-year depreciation for all vehicles is 38.8%, according to the iSeeCars data. What’s interesting though is that some segments lose their worth much more than others, with electric vehicles by far the worst. Here are some key findings from the report:
Let’s take a look at the vehicles that have depreciated the least over their first five years, according to iSeeCars.com.
Model | Average 5-Year Depreciation | Average Dollar Difference from MSRP |
---|---|---|
Porsche 911 (coupe) | 9.3% | $18,094 |
Porsche 718 Cayman | 17.6% | $13,372 |
Toyota Tacoma | 20.4% | $8,359 |
Jeep Wrangler/Wrangler Unlimited | 20.8% | $8,951 |
Honda Civic (sedan/hatchback) | 21.5% | $5,817 |
Subaru BRZ | 23.4% | $8,114 |
Chevrolet Camaro | 24.2% | $10,161 |
Toyota C-HR | 24.4% | $6,692 |
Subaru Crosstrek | 24.5% | $7,214 |
Toyota Corolla | 24.5% | $5,800 |
Average for all vehicles | 38.8% | $17,221 |
Read iSeeCars.com’s full report.
Money expert Clark Howard wants you to avoid jumping into this crazy car market if at all possible. Until things get more stable, he suggests that you keep the car you have and make any needed repairs.
If you must buy a vehicle, Clark remains a big fan of buying used cars because the first owner will take the brunt of the depreciation in the first few years.
“I’ve had an obsession forever about why buying a used vehicle is so much better for your wallet than buying new,” Clark says. “For most people, buying used is going to be a much better choice.”
But there is an exception, Clark says:
“If you can buy that three-year-old vehicle for a third less than what a new one would be, then go ahead and buy the three-year-old used vehicle,” Clark says. “On the other hand, if the gap is less than that, that would push you more toward buying a new one.”
As for electric vehicles, Clark says it’s super important for you to pay attention to the mileage range you get from a fully charged battery pack as well as how old the battery pack is.
If you want to use your electric vehicle for intown trips only, you have many options to choose from.
“If you want to do a lot of over-the-road trips, you only have one brand you can look at and one brand only. And that’s Tesla,” Clark says. “Because the charging network is a joke over the road for every other brand but Tesla.”
This post was last modified on November 13, 2023 2:07 pm
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