:max_bytes(150000):strip_icc()/Fit-5bfc2d6a46e0fb00517c3af9.jpg "Top Cars with the Lowest Depreciation: Boost Your Resale Value")
Key Takeaways
- Depreciation is the highest cost of car ownership, impacting total cost over five years.
- Resale value is crucial for reducing the financial impact of car depreciation.
- Toyota vehicles often have low depreciation, leading to higher resale values.
- The Subaru Impreza and the Toyota Camry are among the best for resale value in their categories.
- Selling before high mileage and maintaining the car can help minimize depreciation.
Depreciation is often the single largest cost of owning a car. It’s immediate and significant—your vehicle depreciates as much as 10% in the first month you drive off the lot. By the end of the first year, the car has depreciated about 20%.
Your best value is to choose a vehicle that depreciates less. Our top-rated models include Toyota and Subaru.
Consider depreciation in your vehicle purchase research and decisions to achieve better resale values and manage ownership costs.
Fast Fact
A car is one of the largest investments you will ever make, next to a home. Depreciation affects between 40% to 55% of your car’s total cost of ownership (TCO) after the first five years. But it usually isn’t a factor when consumers research their next car purchase.
What Is Depreciation?
Depreciation is defined as a decrease in the value of an asset over the length of its useful life. That useful life (and therefore its depreciation) is affected by factors such as the original purchase price, sales tax, gas prices, automotive loan interest rates, insurance premiums, maintenance and repairs, and automaker reputation.
Determining the depreciation of any consumer product, much less your car, isn’t easy. You must research the model you are considering. Here are a few things you should look into:
- Determine the new car price for that make and model
- Look at the used price for the same make and model
- Factor in the residual value of the used vehicle to get an accurate picture of its depreciation
After the initial hit to a car’s value in the first year, it’s safe to expect about 15% depreciation per year.
We’ve listed some of the top vehicles by resale value with the lowest amount of depreciation, according to Kelley Blue Book’s 2025 list. All depreciation figures and those for the total cost of ownership are derived from Edmunds.
Important
Residual value is the value of a vehicle after subtracting depreciation. There are multiple lists published by car guides, auto magazines, and consumer reporting groups of cars that depreciate the least.
Toyota: The Leading Brand for Retaining Value
Toyota (TM) generally leads the pack when it comes to value and reliability. The brand tops Kelley Blue Book’s list of vehicles with the best resale value in five different categories. The list is divided into different vehicles classes each year, including sedans, mid- and full-size cars, hybrids, electric vehicles, SUVs, and minivans. The list includes vehicles with the least amount of depreciation.
Top Compact Car for Resale Value: Subaru Impreza
The Impreza may not be a fun and flirty car, but it does provide the driver and passengers with a lot of room. This model is rated as one of the safest compact cars on the road, not to mention one of the most reliable. It also has one of the best resale values of any other car around.
The manufacturer’s suggested retail price (MSRP) for the 2021 Subaru Impreza was $18,795 if you purchased the basic model with no upgrades. The true cost to own the vehicle after five years is $30,478. The cost of depreciation for a 2021 Impreza is estimated to be $7,220 after that period.
Toyota Camry: Leading Midsize Car in Value Retention
The Camry is one of the most popular sedans on the market and has been for quite some time, owing to its reliability and comfort. It tops the list of midsize sedans, beating out rivals, such as the Honda Accord, Nissan Altima, and Hyundai Sonata. The car comes with a regular gas engine or hybrid option for those who want better fuel economy.
The MSRP for a 2021 Camry was $24,970 for a basic LE model without any add-ons or extra features. The true cost to own one is estimated to be $31,206, with depreciation coming in at $9,555 after five years.
Toyota RAV4 Hybrid: Top Choice for Durable Value
Toyota’s RAV4 is one of the top compact SUVs on the market based on consumer purchases. The plug-in hybrid model has a 302-horsepower engine and boasts 42 miles per gallon when you drive in the city. It’s also available in a fully gas-powered model for those who don’t want to pay extra for the non-hybrid version.
Looking to purchase the 2025 RAV4 Hybrid Plug-In SE? The MSRP is $45,660. Remember, that’s just the base model without any extras. The five-year TCO is $48,996. This includes the cost of depreciation of $20,498.
GMC Yukon: Full-Size SUV with Exceptional Resale Value
GMC overhauled the design of this full-size SUV, making it roomier and more powerful. There’s a full third row of seating and the option to upgrade to a new off-road-oriented AT4 trim. You can also purchase the Yukon in a diesel model.
The additional room and styling aren’t the only attractive features of this vehicle. GMC has set a competitive price on the Yukon with the MSRP coming in at about $51,995. The true cost of ownership comes in at about $70,953 after five years, with depreciation in the range of $31,743. That’s less than half the value.
The Bottom Line
Factors like the economy, fuel prices, and maintenance can alter the depreciation value of a vehicle. If you want to keep the depreciation low, take good care of it and sell it before the mileage gets too high. You should also factor in how long you plan to use the vehicle.
You shouldn’t purchase a car solely on the assumption that it won’t depreciate as much as another. A vehicle’s useful life is affected by factors like the original purchase price, sales tax, gas prices, loan interest rates, insurance premiums, maintenance and repairs, and automaker reputation.
If you plan on driving it for as long as possible, depreciation won’t matter. If you want to drive it for a few years and buy another one, ensure you know how much it’s worth down the road. Sometimes, buying a used vehicle will be best for that situation, but make sure the used vehicles you look at are worth the price.
