New Car Depreciation Least and Most - Report From ISEECARS.COM

Guest Submission To The Auto Channel
From ISEECARS.COM

Car Depreciation: Why It’s Important to Understand the Value of Your Car

Understanding a vehicle’s depreciation is an important factor in helping both new and used car shoppers make an informed car-buying decision at the dealership . Consumers should anticipate their long-term needs when purchasing a new vehicle . “If you plan on making a trade-in or selling your vehicle after a few years, a brand new car that has a slower rate of depreciation can put more money in your pocket for your next car purchase,” said Brauer. “Conversely, if you’re a used vehicle shopper, choosing a car that has already taken a depreciation hit can provide substantial savings.”

Jeep Wrangler tops the list of vehicles with the lowest depreciation, at 9.2 percent over five years, compared to 40.1 percent average
Nissan LEAF depreciates the most, losing 65.1 percent of its value, amounting to a $23,666 drop in value over five years
Trucks and truck-based SUVs hold their value the best, while EVs and luxury sedans see the most depreciation

The new cars that retain the most value after 5 years consist of trucks, truck-based SUVs , and sports cars, while luxury cars depreciate the most according to a new study by automotive research firm and car search engine iSeeCars.com .

iSeeCars.com analyzed more than 8.2 million car sales to identify vehicles from the 2016 model year with the lowest and highest loss in value from MSRP after five years. iSeeCars found that the average five-year-old vehicle depreciated by 40.1 percent in 2021, compared to 49.1 percent in 2020.

“We’ve seen record high used car prices over the past 15 months as a result of the microchip shortage, and that has slowed down the average depreciation rate across all vehicles,” said iSeeCars Executive Analyst Karl Brauer. “Vehicles that have historically maintained their value well have depreciated even less this past year, but even in today’s market some cars continue to drastically drop in value.”

Vehicles That Depreciate the Least

The average car depreciation over the first five years is 40.1 percent, and the five- year-old cars with the best resale value depreciate 1.6 to 4.4 times less than average, as shown below.

Top 10 Vehicles With the Lowest Depreciation - iSeeCars Study
Rank	Model	Average 5-Year Depreciation	Avg $ Difference from MSRP
1	Jeep Wrangler	9.2%	$2,796
2	Jeep Wrangler Unlimited	10.5%	$3,810
3	Porsche 911	12.8%	$20,710
4	Toyota Tacoma	13.8%	$4,899
5	Toyota Tundra	19.5%	$8,458
6	Ford Mustang	21.0%	$7,280
7	Chevrolet Corvette	22.7%	$17,655
8	Chevrolet Camaro	23.6%	$8,553
9	Dodge Challenger	24.4%	$10,308
10	Toyota 4Runner	24.6%	$10,818
*Average for All Vehicles*		*40.1%*	*$15,764*

Jeep earns the top two spots on the list, with the Jeep Wrangler having the lowest depreciation followed by its four-dour counterpart, the Jeep Wrangler Unlimited in second. “ Jeep Wranglers are known for retaining their value due to their enthusiastic fanbase, as well as their durability and performance across all terrains, especially off-road,” said Brauer. “ Jeep Wranglers also have maintained their iconic design, so even older models don’t appear dated.”

Sports cars account for five models on the list including the third-ranked Porsche 911, the sixth-ranked Ford Mustang, the seventh-ranked Chevrolet Corvette, the eighth-ranked Chevrolet Camaro, and the ninth-ranked Dodge Challenger. “Along with the 911’s timeless design and reputation for reliability, Porsche sells few 911s relative to market demand, so there aren’t many 911s in the used car marketplace,” said Brauer. “The Mustang, Corvette, Camaro, and Challenger are all classic American sports cars with an aspirational appeal for many consumers, and drivers are likely more willing to pay a premium for them, especially because they aren’t as common in the used car marketplace.”

Two Toyota pickup trucks make the list: the Tacoma in fourth and the Tundra in fifth. “Toyota trucks have a well-earned reputation for reliability and quality, and the in-demand Tacoma is the best-selling midsize truck in the country,” said Brauer. “These indestructible trucks can be workhorses or dependable family haulers, which widens their appeal and helps boost resale value.”

Rounding out the list is the tenth-ranked Toyota 4Runner midsize SUV, which depreciates 38.5 percent after five years. “The Toyota 4Runner has Toyota’s reputation for reliability and indestructibility as a truck-based SUV,” said Brauer. “It has also enjoyed enduring popularity since its release over 35 years ago, contributing to its high residual value.”

Vehicles that Depreciate the Most

iSeeCars also examined the vehicles that depreciate the most after five years, which lose 1.4 to 1.6 times more of their original value than the average vehicle.

Top 10 Vehicles With the Highest Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation	Avg $ Difference from MSRP
1	Nissan LEAF	65.1%	$23,666
2	BMW i3	63.1%	$32,663
3	BMW 7 Series	61.5%	$63,271
4	Maserati Ghibli	61.3%	$51,659
5	BMW X5	60.3%	$41,950
6	Jaguar XF	59.5%	$38,523
7	BMW 5 Series	59.1%	$36,210
8	Audi A6	58.2%	$35,393
9	Lincoln Navigator L	57.7%	$44,849
10	Volvo S60	57.3%	$24,956
*Average for All Vehicles*		*40.1%*	*$15,764*

The Nissan LEAF is the vehicle that depreciates the most, losing 65.1 percent of its value after five years. “ Electric vehicles like the first-generation Nissan LEAF become outdated quickly due to the rapid advancements in range and battery life, as early LEAF batteries were only expected to last eight to ten years,” said Brauer. “Government incentives like the $7,500 federal tax credit also play a role in the LEAF’s steep depreciation, as its resale value is based on original MSRP, but real-world transaction prices when new are effectively $7,500 lower.

A second electric vehicle, the BMW i3 earns the second spot. “The BMW i3 had just 80 miles of range before its 2017 update, and it had a high price tag for its city car designation,” said Brauer. “The limited market for the i3 led to its recent cancellation, and its lack of popularity, high price tag, and government incentives all contribute to steep depreciation.

Luxury sedans account for six models on this list, including the third-ranked BMW 7 Series superluxury sedan, the fourth-ranked Maserati Ghibli, the sixth-ranked Jaguar XF, the seventh-ranked BMW 5 Series, the eighth-ranked Audi A6, and the tenth-ranked Volvo S60. “Luxury buyers want to be seen in the latest version of their preferred model, but that status fades quickly after a luxury vehicle drives off the lot, drastically reducing these models’ value on the secondary market,” said Brauer. “Moreover, the popularity of sedans has declined, so the price has to significantly drop to make these vehicles desirable to used car shoppers to compensate for their high operating costs and outdated technology.”

Two SUVs from luxury brands round out the list, including the fifth-ranked BMW X5 midsize crossover SUV and the ninth-ranked Lincoln Navigator L full-size SUV. “The BMW X5 has a higher than average starting price for the class as well as a high cost of ownership and high repair costs, all contributing to the vehicle’s steep depreciation,” said Brauer. “The Lincoln Navigator L is a common fleet and livery vehicle, which depreciate more than privately owned vehicles.”

Vehicle Depreciation by Segment

Small SUVs

iSeeCars determined the lowest- and highest- depreciating subcompact and compact SUVs relative to the segment average, which is 41.0 percent.

Top 5 Lowest- and Highest-Depreciating Small SUVs - iSeeCars Study
Lowest-Depreciating			Highest-Depreciating
Rank	Vehicle	Average 5-Year Depreciation	Vehicle	Average 5-Year Depreciation
1	Jeep Wrangler	9.2%	Ford Escape	49.8%
2	Honda HR-V	34.3%	FIAT 500X	49.1%
3	Mazda CX-3	34.5%	Chevrolet Equinox	47.7%
4	Jeep Renegade	34.8%	GMC Terrain	47.3%
5	Toyota RAV4	35.8%	Mitsubishi Outlander	46.2%
	*Small* *SUV* *Average: 41.0%*

Small Luxury SUVs

iSeeCars determined the lowest- and highest-depreciating small luxury SUVs relative to the segment average, which is 46.0 percent.

Top 5 Lowest- and Highest-Depreciating Small Luxury SUVs - iSeeCars Study
Lowest-Depreciating			Highest-Depreciating
Rank	Vehicle	Average 5-Year Depreciation	Vehicle	Average 5-Year Depreciation
1	Porsche Macan	37.1%	Volvo XC60	54.8%
2	MINI Countryman	39.1%	Buick Envision	52.4%
3	Mercedes-Benz GLA	39.3%	Audi Q5	50.8%
4	Mercedes-Benz GLC	40.4%	BMW X3	50.7%
5	BMW X1	43.6%	Acura RDX	49.6%
	*Small Luxury* *SUV* *Average: 46.0%*

Midsize SUVs

iSeeCars determined the lowest- and highest-depreciating midsize SUVs relative to the segment average, which is 39.9 percent.

Top 5 Lowest- and Highest-Depreciating Midsize SUVs - iSeeCars Study
Lowest-Depreciating			Highest-Depreciating
Rank	Vehicle	Average 5-Year Depreciation	Vehicle	Average 5-Year Depreciation
1	Jeep Wrangler Unlimited	10.5%	Nissan Pathfinder	52.8%
2	Toyota 4Runner	24.6%	GMC Acadia	52.6%
3	Toyota Highlander	38.0%	Chevrolet Traverse	51.2%
4	Dodge Durango	41.9%	Nissan Murano	49.7%
5	Jeep Grand Cherokee	42.4%	Hyundai Santa Fe	49.5%
	*Midsize* *SUV* *Average: 39.9%*

Luxury Midsize SUVs

iSeeCars ranked the depreciation of midsize luxury SUVs relative to the segment average, which is 46.2 percent.

Ranking of Luxury Midsize SUVs by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Lexus RX 350	34.6%
2	Lexus GX 460	39.5%
3	Porsche Cayenne	44.5%
4	Mercedes-Benz GLE	46.4%
5	Land Rover Range Rover Sport	47.7%
6	Volvo XC90	48.6%
7	BMW X6	49.6%
8	Acura MDX	53.2%
9	BMW X5	53.7%
	*Midsize Luxury* *SUV* *Average: 46.2%*

Full-Size SUVs

iSeeCars ranked the depreciation of full-size SUVs relative to the segment average, which is 44.1 percent.

Ranking of Full-Size SUVs by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Toyota Land Cruiser	35.4%
2	Toyota Sequoia	39.7%
3	Chevrolet Tahoe	41.2%
4	GMC Yukon	43.7%
5	Chevrolet Suburban	45.7%
6	GMC Yukon XL	46.9%
7	Ford Expedition	52.8%
	*Full-Size* *SUV* *Average: 44.1%*

Full-Size Luxury SUVs

iSeeCars ranked the depreciation of full-size luxury SUVs relative to the segment average, which is 53.1 percent.

Ranking of Full-Size SUVs by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Lexus LX 570	37.7%
2	Mercedes-Benz G-Class	40.2%
3	Cadillac Escalade	51.1%
4	Land Rover Range Rover	53.0%
5	Cadillac Escalade ESV	54.2%
6	Infiniti QX80	54.7%
7	Lincoln Navigator	55.8%
8	Buick Enclave	56.5%
9	Lincoln Navigator L	57.7%
	*Full-Size Luxury* *SUV* *Average: 53.1%*

Compact Pickup Trucks

iSeeCars ranked the depreciation of compact pickup trucks relative to the segment average, which is 21.4 percent.

Ranking of Compact Pickup Trucks by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Toyota Tacoma	13.8%
2	GMC Canyon	25.6%
3	Chevrolet Colorado	27.1%
4	Nissan Frontier	27.8%
	*Compact* *Pickup Truck* *Average: 21.4%*

Full-Size Pickup Trucks

iSeeCars ranked the depreciation of full-size pickup trucks relative to the segment average, which is 31.8 percent.

Ranking of Full-Size Pickup Trucks by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Toyota Tundra	19.5%
2	GMC Sierra 1500	30.7%
3	Chevrolet Silverado 1500	31.0%
4	Ford F-150	31.7%
5	Ram 1500	35.2%
6	Nissan Titan XD	38.8%
	*Full-Size* *Pickup Truck* *Average: 31.8%*

Small Cars

iSeeCars ranked the depreciation of small compact cars and subcompact cars relative to the segment average, which is 36.3 percent.

Ranking of Small Cars by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Subaru WRX	29.4%
2	Honda Civic	30.4%
3	Toyota Corolla	32.9%
4	Subaru Impreza	34.2%
5	Chevrolet Spark	38.0%
6	Nissan Versa	38.2%
7	Hyundai Veloster	38.3%
8	Kia Rio	38.7%
9	Volkswagen Golf GTI	39.8%
10	Kia Forte	39.9%
11	Hyundai Accent	40.9%
12	Hyundai Elantra	41.2%
13	Volkswagen Jetta	43.7%
14	Nissan Sentra	44.2%
	*Small Car Average: 36.3%*

Small Luxury Cars

iSeeCars ranked the depreciation of small luxury cars relative to the segment average, which is 46.4 percent.

Ranking of Small Luxury Cars by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Lexus RC 350	32.7%
2	Lexus RC 300	33.1%
3	Lexus IS 350	39.1%
4	Mercedes-Benz CLA	39.5%
5	Lexus IS 300	40.9%
6	BMW M3	41.3%
7	BMW 2 Series	42.6%
8	Audi S3	44.2%
9	Audi A5	46.2%
10	Mercedes-Benz C-Class	46.8%
11	BMW 4 Series (coupe)	47.0%
12	Acura ILX	48.3%
13	Audi A3	48.9%
14	BMW 4 Series (Sedan)	50.1%
15	INFINITI Q50	52.0%
16	BMW 3 Series	52.3%
17	Audi A4	52.5%
18	Volvo S60	57.3%
	*Small* *Luxury Car* *Average: 46.4%*

Midsize Cars

iSeeCars ranked the depreciation of midsize cars relative to the segment average, which is 43.6 percent.

Ranking of Midsize Cars by Depreciation - iSeeCars Study
Rank	Brand	Average 5-Year Depreciation
1	Honda Accord	39.0%
2	Toyota Camry	40.7%
3	Subaru Legacy	41.5%
4	Mazda MAZDA6	43.8%
5	Hyundai Sonata	44.8%
6	Chevrolet Malibu	45.1%
7	Volkswagen Passat	48.2%
8	Nissan Altima	48.9%
	*Midsize Car Average: 43.6%*

Midsize Luxury Cars

iSeeCars ranked the depreciation of midsize luxury cars relative to the segment average, which is 53.6 percent.

Ranking of Midsize Luxury Cars by Depreciation - iSeeCars Study
Rank	Vehicle	Average 5-Year Depreciation
1	Lexus ES 350	40.8%
2	Acura TLX	51.1%
3	Mercedes-Benz E-Class	51.5%
4	Audi S6	53.6%
5	Mercedes-Benz E-Class	56.8%
6	Audi A6	58.2%
7	BMW 5 Series	59.1%
8	Jaguar XF	59.5%
9	Maserati Ghibli	61.3%
	*Midsize* *Luxury Car* *Average: 53.6%*

Sports Cars

iSeeCars also determined the highest and lowest depreciation among sports cars as compared to the segment average of 24.7 percent.

Ranking of Sports Cars by Depreciation - iSeeCars Study
Rank	Brand	Average 5-Year Depreciation
1	Ford Mustang (Coupe)	21.0%
2	Chevrolet Corvette (Coupe)	22.7%
3	Chevrolet Camaro (Coupe)	23.6%
4	Dodge Challenger	24.4%
5	Chevrolet Corvette (Convertible)	27.7%
6	Subaru BRZ	28.0%
7	Mazda MX-5 Miata	31.2%
8	Chevrolet Camaro (Convertible)	31.4%
9	Ford Mustang (Convertible)	39.3%
	*Sports Car Average: 24.7%*

Electric Vehicles

iSeeCars ranked the depreciation of electric vehicles relative to the segment average, which is 53.7 percent.

Ranking of 5-Year Depreciation for Electric Vehicles - iSeeCars Study
Rank	Model	Average 5-Year Depreciation
1	Tesla Model X	46.9%
2	Tesla Model S	52.4%
*Electric Vehicle* *Average*		*53.7%*
3	Nissan LEAF	65.1%

Hybrid Vehicles

iSeeCars ranked the depreciation of hybrid vehicles relative to the segment average, which is 45.4 percent.

Ranking of 5-Year Depreciation for Hybrid Vehicles - iSeeCars Study
Rank	Model	Average 5-Year Depreciation
1	Toyota RAV4 Hybrid	36.4%
2	Toyota Prius	41.8%
3	Toyota Highlander Hybrid	42.2%
4	Toyota Camry Hybrid	45.4%
*Hybrid Vehicle Average*		*45.4%*
5	Lexus ES 300h	48.7%
6	Toyota Avalon Hybrid	50.3%
7	Hyundai Sonata Hybrid	52.2%
8	BMW X5	60.3%
9	BMW i3	63.1%

Lowest- and Highest-Depreciating Cars By City

i SeeCars also examined the data to determine the vehicles that depreciate the least and the most in the top 50 most populous metro areas.

Lowest- and Highest-Depreciating Vehicle By Metro Area - iSeeCars Study
	Lowest-Depreciating		Highest-Depreciating
Metro Area	Model	Average 5-Year Depreciation	Model	Average 5-Year Depreciation
Albuquerque-Santa Fe, NM	Jeep Wrangler	5.6%	BMW 5 Series	56.1%
Atlanta, GA	Jeep Wrangler	7.6%	Nissan LEAF	64.4%
Austin, TX	Jeep Wrangler	8.8%	BMW 5 Series	59.3%
Baltimore, MD	Jeep Wrangler	8.6%	BMW 7 Series	61.7%
Birmingham, AL	Jeep Wrangler	8.3%	BMW 5 Series	58.9%
Boston, MA-Manchester, NH	Jeep Wrangler	9.2%	BMW 7 Series	62.2%
Charlotte, NC	Jeep Wrangler	6.9%	BMW 7 Series	60.0%
Chicago, IL	Jeep Wrangler	8.6%	Nissan LEAF	65.5%
Cincinnati, OH	Jeep Wrangler	9.8%	BMW 5 Series	60.3%
Cleveland-Akron (Canton), OH	Jeep Wrangler	9.7%	BMW 7 Series	62.8%
Columbus, OH	Jeep Wrangler	10.0%	BMW 5 Series	60.5%
Dallas-Ft. Worth, TX	Jeep Wrangler	6.8%	Nissan LEAF	63.7%
Denver, CO	Jeep Wrangler	7.9%	Nissan LEAF	64.8%
Detroit, MI	Jeep Wrangler	11.6%	BMW 7 Series	64.6%
Fresno-Visalia, CA	Jeep Wrangler	9.7%	Buick Enclave	57.9%
Grand Rapids-Kalamazoo, MI	Jeep Wrangler	9.3%	BMW 7 Series	62.3%
Greensboro-Winston Salem, NC	Jeep Wrangler	8.2%	BMW 5 Series	58.7%
Greenville-Spartanburg, SC	Jeep Wrangler	7.1%	BMW 5 Series	57.6%
Harrisburg-Lancaster-York, PA	Jeep Wrangler	10.1%	BMW 5 Series	60.6%
Hartford & New Haven, CT	Jeep Wrangler	8.9%	Nissan LEAF	65.7%
Houston, TX	Jeep Wrangler	8.0%	Nissan LEAF	64.8%
Indianapolis, IN	Jeep Wrangler	9.2%	BMW 5 Series	59.8%
Jacksonville, FL	Jeep Wrangler	8.7%	BMW 5 Series	59.2%
Kansas City, MO	Jeep Wrangler	6.2%	Nissan LEAF	63.0%
Las Vegas, NV	Jeep Wrangler	8.0%	Nissan LEAF	64.9%
Los Angeles, CA	Jeep Wrangler	9.3%	BMW 5 Series	59.8%
Memphis, TN	Jeep Wrangler	11.8%	Nissan LEAF	68.6%
Miami-Ft. Lauderdale, FL	Jeep Wrangler	7.4%	BMW 5 Series	58.0%
Milwaukee, WI	Jeep Wrangler	9.1%	Nissan LEAF	66.0%
Minneapolis-St. Paul, MN	Jeep Wrangler	7.6%	BMW 7 Series	60.7%
Nashville, TN	Jeep Wrangler	8.6%	BMW 5 Series	59.1%
New York, NY	Jeep Wrangler	11.8%	BMW 7 Series	64.9%
Norfolk-Portsmouth-Newport News, VA	Jeep Wrangler	7.9%	BMW 5 Series	58.4%
Oklahoma City, OK	Jeep Wrangler	9.3%	BMW 5 Series	59.8%
Orlando-Daytona Beach, FL	Jeep Wrangler	10.5%	Nissan LEAF	67.4%
Philadelphia, PA	Jeep Wrangler	8.2%	Nissan LEAF	65.1%
Phoenix, AZ	Jeep Wrangler	5.9%	Nissan LEAF	62.7%
Pittsburgh, PA	Jeep Wrangler	9.1%	BMW 5 Series	59.6%
Portland, OR	Jeep Wrangler	5.4%	Nissan LEAF	62.2%
Raleigh-Durham (Fayetteville), NC	Jeep Wrangler	8.7%	BMW 7 Series	61.7%
Sacramento-Stockton-Modesto, CA	Jeep Wrangler	6.3%	Nissan LEAF	63.1%
Salt Lake City, UT	Jeep Wrangler	9.5%	Nissan LEAF	66.3%
San Antonio, TX	Jeep Wrangler	9.1%	Nissan LEAF	65.9%
San Diego, CA	Jeep Wrangler	8.2%	Nissan LEAF	65.0%
San Francisco-Oakland-San Jose, CA	Jeep Wrangler	6.5%	Nissan LEAF	63.4%
Seattle-Tacoma, WA	Jeep Wrangler	5.7%	Nissan LEAF	62.5%
St. Louis, MO	Jeep Wrangler	9.0%	Audi A6	58.7%
Tampa-St Petersburg (Sarasota), FL	Jeep Wrangler	9.2%	BMW i3	64.3%
Washington, DC (Hagerstown, MD)	Jeep Wrangler	8.5%	Nissan LEAF	65.4%
West Palm Beach-Ft. Pierce, FL	Jeep Wrangler	11.1%	BMW 7 Series	64.2%

The lowest-depreciating vehicle is the Jeep Wrangler, which earned the distinction across all the top 50 most populous metro areas. The highest-depreciating vehicle is the Nissan LEAF in 21 metro areas.

Car Depreciation: Why It’s Important to Understand the Value of Your Car

Car shoppers can obtain a vehicle’s projected 1 to 5-year depreciation rate to better understand a car’s value using iSeeCars’ free VIN Check tool.

Methodology

iSeeCars.com analyzed more than 800,000 used cars from model year 2016 sold between January and August 2021. Heavy-duty trucks and vans, models no longer in production as of the 2021 model year, and low-volume models were removed from further analysis. MSRPs from 2016 were inflation-adjusted to 2021 dollars, based on data from the US Bureau of Labor Statistics. The difference in average asking price for each vehicle between its MSRP and its used car pricing was mathematically modeled to obtain the vehicle’s 5-year depreciation.

About iSeeCars.com

iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars VIN check reports and Best Cars rankings. iSeeCars.com has saved users over $312 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.