When you’re shopping for a car, you may want to pay attention to its depreciation rate. After all, you want your vehicle to retain its value for as long as possible.
Car research site iSeeCars.com recently released a list of vehicles it says hold their value the best. The study analyzed more than 8.2 million car sales to identify models that have depreciated the least after five years.
Here are some key findings from the study:
- The Jeep Wrangler Unlimited tops the list, losing around 31% of its value after five years. At the tail end is the Nissan Frontier (43.5%).
- Four pickup trucks make the list, including models from Toyota, GMC and Nissan.
- Sports cars account for three models on the list including models from Dodge, Subaru and Porsche.
Money expert Clark Howard says if you’re thinking of buying a vehicle, you can actually save money by holding onto it long term.
“The only way it works for you as a consumer is that you keep that vehicle for a very long time,” says Clark. “Because vehicles depreciate quicker based on model year than they do based on the mileage on the odometer.”
Let’s look at the top used vehicles with the lowest loss of value after five years.
These Vehicles Have the Lowest Depreciation
|Model||Average 5-Year Depreciation||Dollar Difference|
|Jeep Wrangler Unlimited||30.9%||$12,168|
See more details from the iSeeCars study, including vehicles that depreciate the most.
So you’ve seen the cars that iSeeCars.com says keep most of their value over a period of time. Now the question becomes whether you should buy any vehicle right now.
To answer that question, you have to consider your financial situation not just today but over the long term. Here’s what Clark says about whether you should buy a car right now.