Car Values: What Loses the Most, and What Holds Its Own?
Cars depreciate over time, but how much value a vehicle loses can vary significantly. A recent study published by iSeeCars highlights which car models experience the highest and lowest depreciation rates after five years of use.
According to the assessment cited by Motor1, the Porsche 911 leads the pack in value retention. After five years, the 911 loses only 19.5% of its value.
Sports Cars Retain Value, Luxury Cars Depreciate
It’s often assumed that high-end sports cars depreciate quickly, but the data reveals a different story. The Porsche 911 stands out as a strong performer, losing only a fraction of its original value. The study also shows luxury cars often suffer significant depreciation.
Porsche: The Value Retention Champion
The Porsche 911, a familiar name to car enthusiasts, retains value exceptionally well. The study indicates a depreciation of only 19.5% after five years. In monetary terms, this translates to a loss of approximately $24,428, from an initial price of around $125,000.
Following closely behind is the Porsche 718 Cayman. This model depreciates by 21.8% over five years, which equates to a loss of approximately $15,851 from an original purchase price near $73,000.
Honda Civic: A Steady Performer
The Honda Civic, a popular model in various markets, also shows strong value retention. After five years, the Civic loses approximately 28% of its value, which is about $7,000, against an initial price of $25,000.
Electric Vehicles and Luxury Cars Face Heavier Depreciation
Electric vehicles (EVs) and luxury cars tend to lose value more rapidly than other categories. The study by iSeeCars highlights significant depreciation rates for these types of vehicles.
EVs: Above-Average Depreciation
On average, electric vehicles depreciate by 58.8% over five years, significantly higher than the 45.6% average for all vehicles. Some models exhibit particularly high depreciation rates.
Jaguar I-Pace: The Biggest Loser
The Jaguar I-Pace, an all-electric model, tops the list with a depreciation rate of 72.2% after five years. This represents a substantial loss of approximately $51,953 from its original price of $72,000.
Other EVs with high depreciation include:
- Tesla Model S (65.2%)
- Nissan Leaf (64.1%)
- Tesla Model X (63.4%)
- Tesla Model Y (60.4%)
Luxury Cars: Consistent Depreciation
Luxury cars, known for their high initial costs, also experience considerable depreciation. The BMW 7-Series leads this category, depreciating by 67.1% after five years. Certain other luxury models show substantial depreciation as well, a factor known to those in the market for these vehicles.
Additional luxury car models with notable depreciation include:
- Infiniti QX80 (65%)
- Maserati Ghibli (64.7%)
- BMW 5-Series (64.7%)
