Car Depreciation Guide 2025

Data-Driven Rankings of the Best and Worst Cars for Resale Value

Last Updated: January 2025
Data Source: iSeeCars analysis of 800,000+ vehicles

When you buy a new car, you're not just purchasing transportation—you're making an investment that will lose value over time. But how much value? That depends entirely on what you buy.

Some cars lose more than 70% of their value in five years. Others lose less than 25%. The difference can amount to $20,000 or more.

This guide breaks down the 2025 depreciation landscape, helping you understand which vehicles hold value and why.

The Big Picture: 2025 Depreciation Trends

The used car market has normalized after pandemic-era craziness, and depreciation rates are returning to historical patterns:

Key Insight: The average new car loses 45.6% of its value after five years. That's up from 38.8% in 2023, reflecting the market's return to normal after pandemic supply shortages.

The Top 10 Cars That Hold Value Best

Based on 5-year depreciation analysis:

1. Porsche 911 — 19.5% Depreciation

The legendary 911 barely depreciates at all. Strong demand, limited supply, and enthusiast loyalty make this the gold standard for value retention. A $120,000 911 is still worth ~$97,000 after five years.

2. Porsche 718 Cayman — 21.8% Depreciation

Porsche's mid-engine sports car follows the 911's playbook. Enthusiast demand keeps values sky-high.

3. Toyota Tacoma — 26.0% Depreciation

The midsize truck segment leader, the Tacoma combines legendary Toyota reliability with strong truck demand. Expect your Tacoma to hold nearly 75% of its value at five years.

4. Chevrolet Corvette — 27.2% Depreciation

America's sports car, especially in mid-engine C8 form, holds value exceptionally well. Limited production and strong demand support prices.

5. Chevrolet Camaro — 28.0% Depreciation

With the Camaro now discontinued, remaining inventory may hold value even better as supply dries up. A muscle car bargain that doesn't depreciate.

6. Toyota Tundra — 29.1% Depreciation

Toyota's full-size truck matches the Tacoma's reputation for reliability. Strong resale reflects confidence in long-term durability.

7. Ford Mustang — ~30% Depreciation

The only pony car still in production (Camaro and Challenger are gone), the Mustang benefits from reduced competition and iconic status.

8. Toyota 4Runner — 31.3% Depreciation

The recently redesigned 4Runner maintains its reputation as the go-anywhere family SUV. Off-road capability and Toyota reliability drive strong resale.

9. Jeep Wrangler — ~31% Depreciation

The Wrangler's cult following and removable top/doors make it nearly unique in the market. Decades of strong resale continue.

10. Honda Civic — ~32% Depreciation

The reliable compact's reputation for longevity translates to strong resale. Buyers trust Civics to last, so they hold value.

The Brands That Hold Value Best

Toyota — Best Overall Brand

For the 8th time in 9 years, Toyota wins Kelley Blue Book's Best Brand award for resale value. Why?

• Legendary reliability
• Conservative depreciation curves
• Strong demand in used market
• Models across every segment perform well

Best Toyota models for resale: Tacoma, Tundra, 4Runner, Corolla Cross, GR86

Lexus — Best Luxury Brand

As Toyota's luxury division, Lexus benefits from the same reliability reputation while offering premium features.

Subaru — Consistent Performer

All-wheel-drive standard, safety focus, and loyal customer base keep Subaru resale strong year after year.

Honda — Reliability Pays

The Civic and CR-V consistently rank among the best-selling used cars for a reason—buyers trust them.

Porsche — Sports Car King

In the sports/luxury segment, nothing beats Porsche for value retention. The 911 is practically currency.

The Worst Cars for Depreciation

Electric Vehicles: The Depreciation Leaders

EVs face unique depreciation challenges:

• Rapid technology advancement makes older models feel obsolete
• Battery degradation concerns (often overblown but impactful)
• New EV price cuts devalue used inventory
• Range anxiety in secondary markets

Notable Exception: Tesla Model 3 and Hyundai Kona Electric depreciate less than the EV average, though still more than comparable gas cars.

Luxury Brands: The Premium Penalty

Luxury cars lose value fast because:

• High MSRPs create large absolute dollar losses
• Expensive maintenance deters used buyers
• New luxury features make older tech feel dated
• Lease returns flood the used market

The Maserati Effect: Maserati leads all brands in depreciation. A Grecale loses 91% of its value in five years. A $100,000 Maserati becomes a $9,000 Maserati.

Specific Models to Avoid (If You Care About Resale)

What Drives Depreciation?

Understanding why cars depreciate can help you predict future values:

Factors That Hurt Resale

1. Luxury Badge Premium brands depreciate faster. Buyers pay for new luxury features; they're less willing to pay for old ones.

2. Electric Powertrain (Currently) EV technology advances quickly, making 3-year-old EVs feel dated. This will likely moderate as the technology matures.

3. High Initial Price The more expensive the car, the more dollars it loses (even if the percentage is similar).

4. Poor Reliability Reputation Brands with reliability concerns (Land Rover, Jaguar, Maserati) suffer in resale because buyers fear future repairs.

5. Redesigns and Competition When a car is redesigned, the old version drops in value. When new competitors arrive, older cars suffer.

Factors That Help Resale

1. Reliability Reputation Toyota, Honda, and Subaru's reputations for longevity translate directly to resale value.

2. Limited Supply Sports cars, trucks, and vehicles with constrained production hold value better.

3. Utility Trucks and SUVs with genuine capability (not just crossovers) maintain demand.

4. Enthusiast Appeal Cars with passionate followings (Wrangler, 911, Corvette, Tacoma) benefit from consistent demand.

5. Fuel Efficiency (for Hybrids) As gas prices fluctuate, hybrids maintain appeal. They depreciate slower than EVs while offering fuel savings.

What This Means for You

If You're Buying New

Consider future resale as part of your total cost of ownership. A car that holds 75% of its value costs you far less than one that loses 60%.

Example:

• Car A: $40,000 new, 25% depreciation = $30,000 value after 5 years = $10,000 cost
• Car B: $40,000 new, 60% depreciation = $16,000 value after 5 years = $24,000 cost

Same price, $14,000 difference in real cost.

If You're Buying Used

High-depreciation vehicles are opportunities. That Maserati that someone paid $100,000 for? You can buy it for $35,000 in five years. Just budget for maintenance.

Best used values:

• Luxury sedans (BMW 5-series, Mercedes E-Class)
• Luxury SUVs (Range Rover, Cadillac Escalade)
• Electric vehicles (if you're comfortable with battery life)

If You're Selling

Selling a good-resale vehicle? Be patient. Private party may get you closer to retail value.

Selling a high-depreciation vehicle? Move quickly. The car is losing value every month. Get instant offers and act fast.

The Bottom Line

Depreciation is the largest cost of car ownership for most people—larger than fuel, insurance, or maintenance. Understanding which cars hold value can save you tens of thousands of dollars over your driving lifetime.

Buy smart: Consider resale before you buy.
Sell smart: Understand your car's position in the market.
Own smart: Track your car's value so you know the optimal time to sell.

Use Sidekick's depreciation tracker to monitor your vehicle's value over time and get alerts when it hits optimal selling windows.

Related Articles:

• Your Car Has Three Prices: Understanding the Value Hierarchy
• Best Trucks for Resale Value in 2025
• Why Electric Cars Depreciate So Fast (And When That Might Change)
• The Trade-In Tax Trick That Saves You $1,000+

Data sourced from iSeeCars (2024-2025 analysis of 800,000+ vehicles), Kelley Blue Book, and CarEdge.