Here are the vehicles that have the highest and lowest 5-year depreciation rates:
says the estimated average transaction price for a light-duty vehicle in the U.S. now stands at $38,259. The average vehicle drops 49.6 of its original value after five years, which translates into nearly a $19,000 loss. And at that, the more expensive the vehicle, the more important this critical ownership cost becomes over time, simply because there’s more money at stake to lose.
What’s more, depreciation should be of major consequence to those who lease a new car or truck instead of purchasing one outright. That’s because monthly payments are largely based on the difference between a vehicle’s transaction price and what it’s predicted to be worth at the end of the term, financed at a set interest rate.
Meanwhile the models that drop in value the most precipitously, according to iSeeCars.com, are expensive luxury sedans, and electrified cars. “Luxury cars have steep depreciation because owners likely trade them in when they become outdated and used car buyers don’t want to pay a high premium on a dated model,” explains Ly.
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