The top spot belongs to the Mitsubishi Mirage, which loses an average of 57.8% of its value over five years, amounting to around $9,300 in value. The second and third are the Chevrolet Sonic and Volkswagen Jetta, both with a five-year average depreciation rate of 56.5%.
Maserati. The Italian luxury automaker holds the title of the most depreciated car brand, with a five-year average depreciation of 69.0%. Volvo.
Overall, the models determined to hold onto their values the most tenaciously among all 2023 vehicles after five years handily beat the industry average. These include the Toyota Tundra (73.3%) and Tacoma (66.0%), Tesla Model X (66.0%), Ford Bronco (65.4%), and the Chevrolet Corvette (65.3%).
Quality and Reliability: Toyota vehicles are known for being reliable, safe, and affordable. This helps them retain their value over time as they stay on the road longer than cars from other manufacturers.
Cars lose the most value in the first year, and depreciation continues for about five years. A car can lose up to 20% of its value in the first year, and over the first five years fall to around 40% from the original price. That means it loses about 15% of the value each year after the first year.
While Mazda models tend to depreciate faster than Jeeps and Toyotas, their resale values have improved.
Trucks, truck-based SUVs and sports cars retain the most value. Luxury sedans depreciate the most.
Cars are a depreciating asset and within the first year lose up to 20% of their value. It continues to depreciate at 10% in the following years. When it comes to Hyundai cars, these vehicles tend to retain their value a little better than other brand cars.
So why does the Mercedes Benz S Class depreciate so rapidly? For the same reasons most luxury cars depreciate faster. They're commonly leased, leading to a large supply of off-lease, three-year-old Mercedes-Benz S Class models.
Teslas depreciate from the moment of purchase, just like any other vehicle. There are a few critical reasons for this, including slower depreciation, steady improvement, demand, and warranty protection.
The most reliable Mazda models can reach up to 200,000 to 250,000 miles and run up to more than a decade with proper care and maintenance.
Although it is less expensive to maintain a Toyota, both Toyota and Mazda have lower repair and maintenance costs. Toyota sells more cars than Mazda, yet Mazda vehicles are overlooked for their dependability. Additionally, Mazda easily beats Toyota in terms of dependability, fuel efficiency, and build quality.
The lifespan of a Mazda is up to 300,000 miles. Mazdas last a very long time. They can travel between 200,000 and 300,000 miles with proper maintenance before experiencing major issues. Several Mazdas have over 350,000 kilometers on them and are still in use.
According to Edmunds, there's a significant drop in the first 2-3 years, and another at the four-year mark. Selling in between those drops will generally net you the best value. After that, the next big drop usually happens at around eight years.
What's the “Sweet Spot” for Used Car Age? In retaining “like new” quality and inheriting a slower depreciation rate, the best used car age for buying is 2-3 years. In fact, Americans are saving up to $14,000 on a 3-year-old vehicle.
iSeeCars, an automotive industry analytics firm, recently released its list of the fastest depreciating cars. There are some familiar names from the luxury market there, but some models may surprise you. Luxury vehicles tend to lose value faster because of their high-tech features and high price tags.
While these manufacturers can be comparable in terms of list price, Toyota vehicles simply retain value better than your average Nissan. That's important because your investment into a vehicle matters more if that vehicle will still have value after several years on the road.
The 2018 Toyota Tacoma has the best resale value with an almost unbelievable 69.6% value when sold 36 months after buying. Considering its flexibility and performance, it's no surprise that this model has the highest resale value.
2003 – 2008 Toyota Corolla – For the best value and reliability, these years received highly favorable Consumer Reports ratings. 2009 – 2013 Toyota Corolla – You'll find improved powertrains and plenty of safety features in these years.