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Depreciation Rate Library

Comprehensive reference data showing average depreciation rates by vehicle type

🏆 Best Value Retention Rankings

#1
🛻
Truck
69.4% value after 5 years
69.4%
retained
#2
🚙
SUV
66.4% value after 5 years
66.4%
retained
#3
🚗
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
💎
Luxury
49.5% value after 5 years
49.5%
retained
🚗

Sedan

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

Typical Depreciation Curve

Year 1
85%
-15% loss
Year 2
76.5%
-10% loss
Year 3
70.4%
-8% loss
Year 4
66.1%
-6% loss
Year 5
62.8%
-5% loss

Best Value Retention Models:

library.vehicleTypes.sedan.bestRetentionModels
🚙

SUV

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

Typical Depreciation Curve

Year 1
86%
-14% loss
Year 2
78.3%
-9% loss
Year 3
72.8%
-7% loss
Year 4
69.2%
-5% loss
Year 5
66.4%
-4% loss

Best Value Retention Models:

library.vehicleTypes.suv.bestRetentionModels
🛻

Truck

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

Typical Depreciation Curve

Year 1
88%
-12% loss
Year 2
80.96%
-8% loss
Year 3
76.1%
-6% loss
Year 4
72.3%
-5% loss
Year 5
69.4%
-4% loss

Best Value Retention Models:

library.vehicleTypes.truck.bestRetentionModels
💎

Luxury

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

Typical Depreciation Curve

Year 1
80%
-20% loss
Year 2
68%
-15% loss
Year 3
59.8%
-12% loss
Year 4
53.8%
-10% loss
Year 5
49.5%
-8% loss

Best Value Retention Models:

library.vehicleTypes.luxury.bestRetentionModels
⚡

Electric Vehicle

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

Typical Depreciation Curve

Year 1
82%
-18% loss
Year 2
71.3%
-13% loss
Year 3
64.2%
-10% loss
Year 4
59.1%
-8% loss
Year 5
55%
-7% loss

Best Value Retention Models:

library.vehicleTypes.electric.bestRetentionModels
🏎️

Sports Car

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

Typical Depreciation Curve

Year 1
83%
-17% loss
Year 2
73%
-12% loss
Year 3
65.7%
-10% loss
Year 4
60.4%
-8% loss
Year 5
56.2%
-7% loss

Best Value Retention Models:

library.vehicleTypes.sports.bestRetentionModels

Understanding Vehicle Depreciation

📉 What Causes Depreciation?

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

💡 Tips to Minimize Depreciation

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

Want to research specific vehicles? AutoTrader provides buy and sell new and used cars.

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