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Depreciation Rate Library

Comprehensive reference data showing average depreciation rates by vehicle type

πŸ† Best Value Retention Rankings

1
πŸ›»
Truck
69.4% value after 5 years
69.4%
retained
2
πŸš™
SUV
66.4% value after 5 years
66.4%
retained
3
πŸš—
Sedan
62.8% value after 5 years
62.8%
retained
4
🏎️
Sports Car
56.2% value after 5 years
56.2%
retained
5
⚑
Electric Vehicle
55% value after 5 years
55.0%
retained
6
πŸ’Ž
Luxury
49.5% value after 5 years
49.5%
retained
πŸš—
63%

Sedan

Standard sedans typically depreciate at a moderate rate, with most value loss in the first 3 years.

Year 1: -15%
5-yr retention: 62.8%

Typical Depreciation Curve

1yr
85%
↓ 15%
2yr
76.5%
↓ 10%
3yr
70.4%
↓ 8%
4yr
66.1%
↓ 6%
5yr
62.8%
↓ 5%

βœ“ Best Value Retention Models:

πŸ₯‡ Honda CivicπŸ₯ˆ Toyota CamryπŸ₯‰ Subaru Impreza
πŸš™
66%

SUV

SUVs hold their value better than sedans due to consistent demand and versatility.

Year 1: -14%
5-yr retention: 66.4%

Typical Depreciation Curve

1yr
86%
↓ 14%
2yr
78.3%
↓ 9%
3yr
72.8%
↓ 7%
4yr
69.2%
↓ 5%
5yr
66.4%
↓ 4%

βœ“ Best Value Retention Models:

πŸ₯‡ Toyota 4RunnerπŸ₯ˆ Jeep WranglerπŸ₯‰ Honda CR-V
πŸ›»
69%

Truck πŸ† Best

Trucks have the best value retention, especially work trucks with strong demand.

Year 1: -12%
5-yr retention: 69.4%

Typical Depreciation Curve

1yr
88%
↓ 12%
2yr
81%
↓ 8%
3yr
76.1%
↓ 6%
4yr
72.3%
↓ 5%
5yr
69.4%
↓ 4%

βœ“ Best Value Retention Models:

πŸ₯‡ Toyota TacomaπŸ₯ˆ Ford F-150πŸ₯‰ Chevrolet Silverado
πŸ’Ž
50%

Luxury

Luxury vehicles depreciate rapidly due to high initial costs and expensive maintenance.

Year 1: -20%
5-yr retention: 49.5%

Typical Depreciation Curve

1yr
80%
↓ 20%
2yr
68%
↓ 15%
3yr
59.8%
↓ 12%
4yr
53.8%
↓ 10%
5yr
49.5%
↓ 8%

βœ“ Best Value Retention Models:

πŸ₯‡ Lexus RXπŸ₯ˆ Porsche 911πŸ₯‰ Land Rover Defender
⚑
55%

Electric Vehicle

EVs depreciate faster due to rapid technology improvements and battery concerns.

Year 1: -18%
5-yr retention: 55%

Typical Depreciation Curve

1yr
82%
↓ 18%
2yr
71.3%
↓ 13%
3yr
64.2%
↓ 10%
4yr
59.1%
↓ 8%
5yr
55%
↓ 7%

βœ“ Best Value Retention Models:

πŸ₯‡ Tesla Model YπŸ₯ˆ Chevrolet BoltπŸ₯‰ Hyundai Ioniq 5
🏎️
56%

Sports Car

Sports cars vary widely - collectibles appreciate while mass-market models depreciate fast.

Year 1: -17%
5-yr retention: 56.2%

Typical Depreciation Curve

1yr
83%
↓ 17%
2yr
73%
↓ 12%
3yr
65.7%
↓ 10%
4yr
60.4%
↓ 8%
5yr
56.2%
↓ 7%

βœ“ Best Value Retention Models:

πŸ₯‡ Porsche 911πŸ₯ˆ Chevrolet CorvetteπŸ₯‰ Mazda MX-5

Understanding Vehicle Depreciation

πŸ“‰ What Causes Depreciation?

  • β€’Age & Mileage: Older vehicles with higher mileage naturally lose value
  • β€’Market Demand: Popular models hold value better than unpopular ones
  • β€’Condition: Well-maintained vehicles depreciate slower
  • β€’Brand Reputation: Reliable brands like Toyota and Honda hold value better
  • β€’Fuel Prices: Fuel-efficient vehicles become more valuable when gas prices rise

πŸ’‘ Tips to Minimize Depreciation

  • βœ“Buy used vehicles that have already taken the biggest depreciation hit
  • βœ“Choose models known for reliability and high resale value
  • βœ“Keep mileage reasonable (aim for 12,000-15,000 miles per year)
  • βœ“Maintain comprehensive service records
  • βœ“Avoid aftermarket modifications that might reduce appeal
  • βœ“Keep the vehicle clean and address minor issues promptly

⏰ The 5-Year Rule

Most vehicles lose 60-70% of their original value within the first 5 years. The steepest depreciation occurs in:

  • 1.Year 1: 15-20% value loss (the biggest hit)
  • 2.Years 2-3: 8-12% per year
  • 3.Years 4-5: 5-8% per year (slowing down)

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