Cars are a depreciating asset. In fact, a new car will lose somewhere between 9% to 11% of its value the moment you drive it off the lot.
That’s why you should aim to buy a car that does well at holding its resale value. You don’t want to lose thousands of dollars just because your car isn’t worth as much as it once was. And you definitely don’t want to end up owing more on your car loan than your car is worth.
So here are the top ten car models to hold their resale value over the five-year period from 2017 to 2022 (taken from a study conducted by iSeeCars). The average 5-year depreciation and average $ difference from MSRP are included:
1. Jeep Wrangler – 7.3% 5-year depreciation ($2,361)
The Jeep Wrangler is a popular off-road vehicle that has been around for over 75 years. Its engine options include a V6 and a turbocharged four-cylinder. It also has a removable roof and doors, which can be great for those who want to truly experience the outdoors.
2. Jeep Wrangler Unlimited – 8.7% 5-year depreciation ($3,344)
The Jeep Wrangler is a bigger four-door version of the Wrangler. It offers more space for cargo and passengers, making it a great option for larger families or those who need to transport large loads from time to time.
3. Porsche 911 – 14.6% 5-year depreciation ($20,634)
The Porsche 911 is a luxury sports car that’s been in production for over half a century. It’s available in a variety of trims and engine options and offers advanced driving features like adaptive cruise control and lane departure warning.
4. Toyota Tacoma – 14.9% 5-year depreciation ($20,634)
The Toyota Tacoma is a midsize truck designed for off-road use. It’s available in both 2-door and 4-door versions and offers an off-road suspension system and a locking rear differential. It’s great for those who need a reliable and durable vehicle capable of towing heavy loads.
5. Honda Civic – 16.3% 5-year depreciation ($11,093)
The Honda Civic is a practical sedan that has been around since the 1970s. It’s known for being affordable and reliable and comes with your choice of a 2.0-liter four-cylinder or a 1.5-liter turbocharged four-cylinder engine.
6. Subaru BRZ – 18.2% 5-year depreciation ($5,985)
The Subarus BRZ is a sporty coupe that is available in two trims and comes with a 2.4-liter four-cylinder engine that produces 228 horsepower. Other notable features include a limited-slip differential and sport-tuned suspension.
7. Ford Mustang – 19.4% 5-year depreciation ($7,528)
The Ford Mustang is a classic American muscle car that’s been in production since the 1960s. It’s known for its powerful engine, either a 2.3-liter four-cylinder or a 5.0-liter V8.
8. Toyota Corolla – 19.8% 5-year depreciation ($4,617)
The Toyota Corolla is an affordable car that comes as a sedan, hatchback, or hybrid. Some of its notable features include adaptive cruise control and automatic high beams.
9. Nissan Versa – 19.9% 5-year depreciation ($3,183)
The Nissan Versa is an affordable subcompact car that’s great for driving around the city. Its engine is a 1.6-liter four-cylinder that produces 122 horsepower.
10. Chevrolet Camaro – 20.2% 5-year depreciation ($7,981)
The Chevrolet Camaro is a classic American muscle car that’s been around since the 1960s. It’s available in several trims and comes with a 2.0-liter four-cylinder or a 6.2-liter V8 engine.
Any of these models can make a great choice if you’re looking for a car that will maintain a lot of its value for the foreseeable future.
If you’re on the fence about which vehicle to choose, consider this advice from Tiger Okeley at used car dealership Oak Motors: “Either spend a little more for the current model of a reliable brand or put the same money you’d spend on a mediocre brand on an older model of a strong brand because 3-5 years down the line it’ll experience much less depreciation.”
With that in mind, do your due diligence to find the best deal. A little patience and persistence can pay off big time.