Industry News: What Vehicles Depreciate the Slowest?

[William Maley]

Most buyers don't tend to think of resale value until it comes time to sell their vehicle. But which models keep their value and which ones don't? iSeeCars.com recently published a study that looked into more than 4.3 million new and used car sales to determine which models lowest and highest loss in value after a five-year time frame.

What vehicles had the lowest depreciation? According to iSeeCars, that would be SUVs and trucks. Taking the number one spot was the Jeep Wrangler Unlimited with an average depreciation rate of 27.3 percent. One only car, the Subaru Impreza would make the list - ninth place with a 42.3 percent average depreciation rate. On the opposite end, the Nissan Leaf has the highest depreciation at 71.7 percent. The rest of the list is made up mostly by luxury vehicles like the BMW 7-Series and Mercedes-Benz S-Class.

"While the average new vehicle loses 50.2 percent of its value after five years, there are vehicles that retain more of their value and depreciate less than average. For consumers who buy new vehicles and sell them around the five-year mark, choosing a model that retains the most value is a smart economic decision,” said iSeeCars CEO Phong Ly.

Some other findings from iSeeCars.com study,

• Toyota Prius c and Prius owners are sitting pretty as they are the lowest depreciating hybrid models in iSeeCars' analysis - 51.5 and 54.1 percent respectively. 
• The BMW X5 and X3 lose a fair amount of their value over the course of five years - 65.6 and 64 percent.
• For sports cars, the lowest depreciation models are the Subaru Impreza WRX (35.9 percent), Volkswagen Golf R (43.3 percent), and Chevrolet Corvette (44.6 percent).

Source: iSeeCars.com

View full article

[smk4565]

I wonder how crossover resale value will be in a couple years when used car lots are flooded with them and Ford and FCA have quit on sedans.

There is also a consumer falacy that an SUV is more rugged and longer lasted than a car is, when a Fusion/Edge or Camry/Highlander are basically the same chassis and power trains coming out of the same factories.

[Robert Hall]

1 hour ago, smk4565 said:

 

There is also a consumer falacy that an SUV is more rugged and longer lasted than a car is, when a Fusion/Edge or Camry/Highlander are basically the same chassis and power trains coming out of the same factories.

Real SUVs may be more rugged and longer lasting, but you are talking about CUVs---which are just common FWD transverse engine appliances---just tall cars, nothing special.   Alas, consumers don't distinguish between SUVs and CUVs.  

Edited November 16, 2018 by Robert Hall

[ykX]

Look at these wonderfully engineered German sedans and crossovers ...

[smk4565]

1 hour ago, Robert Hall said:

Real SUVs may be more rugged and longer lasting, but you are talking about CUVs---which are just common FWD transverse engine appliances---just tall cars, nothing special.   Alas, consumers don't distinguish between SUVs and CUVs.  

What is a real SUV?  Is a Wrangler going to last longer than a Cherokee or Compass?  Does a G-class last longer than an E-class sedan?  I don’t buy into a truck lasts longer than a car so it has better resale.  I think crossovers are hot and the used market isn’t flooded with them yet to where 70% of used car lot inventory is a crossover/suv which will happen.

[Robert Hall]

6 minutes ago, smk4565 said:

What is a real SUV?  Is a Wrangler going to last longer than a Cherokee or Compass?  Does a G-class last longer than an E-class sedan?  I don’t buy into a truck lasts longer than a car so it has better resale.  I think crossovers are hot and the used market isn’t flooded with them yet to where 70% of used car lot inventory is a crossover/suv which will happen.

Real SUVs to me are on dedicated RWD/AWD platforms or truck BOF construction.  Wranglers, Grand Cherokees, the larger Range Rovers, Land Cruisers, Tahoes, Escalades, etc.   Not weak transverse engine FWD car-based CUVs.   Vehicles such as a Wrangler or G-class are certainly more ruggedly built than some transverse engine FWD appliance...and off road capable. 

Edited November 16, 2018 by Robert Hall

[frogger]

I would only think they are better for frequent off-roading, but a 15 year old SUV is still going to have the same kinds of issues a 15 year old car has (electronics, alternators, starters, water pumps, transmission, air con, suspension bits etc), and the more complex drivetrain can be costlier to maintain/repair as well.

 

 

 

 

 

 

 

[Robert Hall]

1 hour ago, frogger said:

I would only think they are better for frequent off-roading, but a 15 year old SUV is still going to have the same kinds of issues a 15 year old car has (electronics, alternators, starters, water pumps, transmission, air con, suspension bits etc), and the more complex drivetrain can be costlier to maintain/repair as well. 

True, anything 15 years old/150k miles is going to have issues.  Been there, done that.  Won't don't it again.

Edited November 16, 2018 by Robert Hall

[David]

My 1994 GMC Suburban SLE with 300,000 + miles I would take over any CUV and especially any German or Asian car. Was designed to haul and pull and has outlasted many auto's a fraction of it's age. I would also take it over a G-Wagon. Yes it is built to military grade spec and will outlast pretty much the rest of MB product line, but the cost of repairs is way higher than my suburban.

[ocnblu]

I knew I was smrt.  Even though I currently have a weak FWD-biased CUV, I would not be caught dead in a high priced German car or a crappy electric.  Wrangler prices have been rising quickly over the last several years, but dang, look at them go and go and GO.

[regfootball]

CUV's are popular because people don't have to bend down so far to get in and out of them.  And people will pay stupid cash extra because of this.

Edited November 17, 2018 by regfootball

[ocnblu]

Like, when I get in a customer's conventional car now, I am like whoa dude, am I getting ol' or is this thing a PITA to get in and out of?

[daves87rs]

It’s not surprising to see Wranglers and GCs less than five years old still sold close to new...

All of this long lasting stuff means nothing to me, as the bottom line is that it still comes down to the care taken for a vehicle.

When I got my Cobalt an oil change last weekend, there was yet another lease turn in Cruze that had not seen an oil change in over 20k......

[Drew Dowdell]

When everyone sits up high, no one sits up high. 

[ocnblu]

420