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5 Cars That Hold Their Value Best After 5 Years

yahoo.com 2 days ago
Althom / iStock.com
Althom / iStock.com

According to Experian’s State of the Automotive Finance Market Report, the average new vehicle loan amount was $40,184 at the end of last year. Assuming new car owners pay some kind of a down payment when getting their vehicle, it’s safe to say that new cars generally cost even more than that.

With the overall cost of new car ownership pricing prospective buyers out of the market, it’s not surprising that more people are starting to turn to used cars to keep costs manageable. Older vehicles often hold their value over time — sometimes better than newer models. After all, cars start to depreciate the moment they’re driven off the lot.

But not all vehicles are created equal. These are five cars that hold their value best after five years, according to car experts and data from Visual Capitalist.

©Stellantis Media
©Stellantis Media

Jeep Wrangler

  • Starting MSRP: $31,995

  • Average rate of depreciation after five years: 21%

  • Average value lost after five years: $8,951

The Jeep Wrangler loses roughly a fifth of its overall value in the first five years, putting it as the fourth-slowest-depreciating car on Visual Capitalist’s list. For an SUV, it’s got a pretty reasonable starting list price too, making it a decent buy for anyone in the market for a powerful vehicle with superior off-road capabilities.

“The Wrangler’s strong resale value is driven by its loyal fan base and consistent demand in the used car market,” said Joe Giranda, director of sales and marketing for CFR Classic.

©Toyota
©Toyota

Toyota Tacoma

  • Starting MSRP: $31,500

  • Average rate of depreciation after five years: 20%

  • Average value lost after five years: $8,359

The Toyota Tacoma has a similar starting price point as the Wrangler, but it tends to lose value at an even slower rate.

According to John Lin, the owner of JB Motor Works in Philadelphia, these midsize trucks are tried and tested and are designed with practicality in mind. This, combined with consistently high demand and Toyota’s overall reputation for producing reliable vehicles, is what helps the truck retain much of its value over time.

Porsche / Porsche
Porsche / Porsche

Porsche 911 (Coupe)

  • Starting MSRP: $114,400

  • Average rate of depreciation after five years: 9%

  • Average value lost after five years: $18,094

Sometimes, you really do get what you pay for. In the case of the Porsche 911, you can expect a pretty steep price tag but also a vehicle that holds its value for the long haul. In fact, Visual Capitalist found that this particular model has the best resale value of all after five years.

Similarly, the Porsche 718 Cayman loses only around a fifth of its overall value in that same time period. The same can be said about the Porche Boxster and the 911 convertible as well.

As for the Porsche 911, it’s seen consistently high demand among luxury sports car buyers and collectors alike.

“Luxury vehicles like the Porsche 911 fare well in terms of depreciation,” Giranda said. Big reasons for this include its exceptional performance, timeless design and the prestige that comes from owning a vehicle from this brand.

Honda Civic

  • Starting MSRP: $23,950

  • Average rate of depreciation after five years: 22%

  • Average value lost after five years: $5,817

Like Toyota, Honda is another Japanese brand with a reputation for producing reliable, efficient and long-lasting vehicles. Losing less than a fourth of its value in five years, the Honda Civic is no different.

“The Honda Civic is a practical option with a reputation for durability and fuel efficiency, making it a favorite among used car buyers,” said Blake Shaw, an automotive expert for All About Wheels. It’s also quite dependable and has a high resale value, he said.

If you’re looking for something a bit bigger, the Honda CR-V is another option worth considering.

“These popular compact SUVs are loved for their reliability and versatility,” Lin said. “CR-Vs usually depreciate about 39% after five years, which is better than many of their competitors.” Honda CR-Vs have a starting MSRP of $29,500.

Brandon Woyshnis / Getty Images
Brandon Woyshnis / Getty Images

Subaru BRZ

  • Starting MSRP: $30,195

  • Average rate of depreciation after five years: 23%

  • Average value lost after five years: $8,114

Visual Capitalist data ranks the Subaru BRZ as the sixth-best vehicle in terms of having a low overall depreciation rate. But the BRZ isn’t the only vehicle by this brand that tends to keep its value over time. The Subaru WRX does too.

According to Shaw, this vehicle retains up to 65% of its value after half a decade. It’s also popular among car owners for its sporty exterior, dependability, overall performance and all-wheel-drive capability.

©Chevrolet
©Chevrolet

Honorable Mentions

Looking for something different? Here are the other options that made Visual Capitalist’s top 10 list of slowest-depreciating vehicles:

  • Chevrolet Camaro, with a 24% average five-year depreciation or $10,161 loss.

  • Toyota C-HR, with a 24% average five-year depreciation or $6,692 loss.

  • Subaru Crosstrek, with a 25% average five-year depreciation or $7,214 loss.

  • Toyota Corolla, with a 25% average five-year depreciation or $5,800 loss.

While you don’t have to consider depreciation rates when buying a vehicle, it can prove beneficial in the long run.

“Understanding the depreciation rates of these vehicles can help in making informed purchasing decisions,” Giranda said. “Investing in a vehicle with a strong resale value ensures that you get the most out of your investment over time, both in terms of performance and financial return.”

Photo Disclaimer: Please note some photos are for illustrative purposes only and might not feature exact models, base models or the cars’ specific trim levels. As a result, some of the cars in the photos might have different MSRPs than the ones listed in this article.

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