Honda Depreciation Rates

Honda is consistently ranked as one of the best vehicle brands when it comes to depreciation, but some models are better than others.
Written by Amber Reed
Reviewed by Brenna Swanston
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A new Honda can depreciate as little as 15% in its first year of ownership, which is well below the industry average of around 20%.
It’s a harsh fact of life that all vehicles lose value as the years go by. Unlike property values, your car’s value generally goes only in one direction: down. But some makes and models depreciate faster than others, and it’s a critical (and often overlooked) factor when purchasing a car.
How does Honda do when it comes to depreciation, and how might this affect your choice of
car insurance
policy? Read on to find out!

Do Hondas hold their value?

Good news! Hondas have long been one of the best brands when it comes to depreciation. Honda has a solid reputation for building cars that are reliable, functional, and enjoyable to drive—and this is reflected in their high retained value. 
Hondas as a whole perform better on average than rivals when it comes to depreciation, but some models knock it out of the park. Edmunds estimates that a 2022
Honda Accord
will lose 16.8% of its value in its first year, and the
Accord hybrid
does even better, with a 15.1% rate of depreciation in its first year. This is much better than the industry average of around 20%!
Even Honda models with the highest rate of depreciation are still within the industry average, with the
Honda Pilot
losing 21.4% of its value and the
Passport
22.2% in the first year of ownership. So not only can you count on your Honda to be reliable on the road, but it also has your back when it comes to depreciation!

What does “depreciation” mean? 

Before we forge ahead, what exactly is depreciation? A car’s depreciation is the difference between the purchase price of your car and its current value. You’ve probably heard it said that new cars lose a lot of value the split second they’re driven off the lot.
And as depressing as it is, that’s true. A vehicle continues to lose value over its lifespan, largely based on factors like: 
  • Purchase price
  • Mileage
  • Ownership and accident history
  • Condition
  • Market activity
On average, a new vehicle depreciates about 40% in the first five years of its life span, and around half of that is lost in the first year. But these figures can vary a lot, even for the same model. A 2016
Honda Civic
that has a ton of miles on it and is in a serious state of disrepair is worth much less than one that has low mileage and has been well cared for. One more reason to take good care of your ride! 
Depreciation is an oft-overlooked part of a car’s true cost of ownership and is a critical thing to keep in mind when you’re purchasing or insuring a vehicle.
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Do Hondas depreciate faster than other vehicles? 

On the contrary—Hondas depreciate at a slower rate when compared to other vehicle brands. Honda makes a frequent appearance on the list of brands with the lowest depreciation, alongside other popular favorites like
Toyota
and
Subaru
On the other end of the curve, you’ll find high-end cars like the
Audi A6
, which loses around 69% of its value in five years.
BMW
makes amazing cars that are a blast to drive, but as a brand, they are notorious for rapid depreciation. Broadly speaking, luxury cars tend to depreciate faster.
MORE: Are Hondas expensive to maintain? 

Honda depreciation rates

Take a look at the tables below to see Edmunds’ estimates of the average one-, three-, and five-year depreciation rates for some of the current base models of Honda
These are estimated assuming 15,000 miles are driven per year and that the routine maintenance schedule has been followed. The residual value is calculated based on Edmunds’ Total Cash Price, which appears in the top row of the table. 
This is just a general idea—your exact numbers will vary depending on factors like mileage, trim level, condition, and market fluctuation. 

Honda Accord depreciation

Years old
Depreciation rate
Residual value
0
0%
$31,398
1
16.8%
$26,100
3
29.1%
$22,626
5
40%
$18,767

Honda Civic depreciation 

Years old 
Depreciation rate
Residual value
0
0%
$27,341
1
19.3%
$22,054
3
28.5%
$19,535
5
37.8%
$16,986

Honda Odyssey depreciation

Years old 
Depreciation rate
Residual value
0
0%
$36,165
1
20%
$28,925
3
30%
$25,283
5
41.2%
$21,237

Honda Passport depreciation

Years old 
Depreciation rate
Residual value
0
0%
$44,759
1
22.2%
$34,811
3
34.1%
$29,493
5
47.3%
$23,586

Honda Pilot depreciation

Years old 
Depreciation rate
Residual value
0
0%
$44,769
1
21.4%
$35,162
3
33.8%
$29,607
5
52.3%
$23,435

Honda Ridgeline depreciation

Years old 
Depreciation rate
Residual value
0
0%
$45,736
1
18.9%
$37,064
3
31.9%
$31,129
5
53.6%
$24,536

Honda Accord Hybrid depreciation

Years old 
Depreciation rate
Residual value
0
0%
$33,858
1
15.1%
$28,743
3
30.5%
$23,526
5
52.3%
$17,732

Honda HR-V depreciation

Years old 
Depreciation rate
Residual value
0
0%
$29,249
1
20.5%
$23,232
3
30.2%
$20,394
5
41%
$17,241

Honda CR-V depreciation

Years old 
Depreciation rate
Residual value
0
0%
$36,165
1
20%
$28,925
3
30%
$25,283
5
41.2%
$21,237

How to find out how much your Honda has depreciated

It’s a good idea to be aware of your car’s depreciation rate if you’re trying to figure out how much owe vs how much it’s worth, and it’s also a good thing to take into consideration when you’re deciding what kind of insurance to purchase.
To get an idea of how much your car has depreciated, subtract its current fair market value from the original purchase price. The difference is your depreciation, or how much value your car has lost since you’ve bought it. Online tools like Kelley Blue Book and Edmunds are reputable sources for determining your car’s fair market value, and you can also have it professionally appraised if you like.
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How to limit Honda depreciation

Just because Hondas hold their value like champs doesn’t mean that you shouldn’t still try to keep depreciation to a minimum. A car is a big investment, and taking care of it is simply a smart move. Here are a few things to keep in mind when trying to limit depreciation in your Honda—or any vehicle, for that matter. 
  • Storage: The elements take their toll on anything, and rain, ice, snow, and heat all accelerate the rate at which your Honda shows its age. If it’s an option, storing/parking your Honda in a garage or covered parking spot helps to keep the damage to a minimum.
  • Mileage: The general depreciation rates are based on a vehicle  that’s driven around 15,000 miles a year. If you put a lot more miles on your Honda than that, it causes it to depreciate faster. On the flip slide, a Honda with lower-than-average mileage generally has more value. 
  • Maintenance: A well-cared for Honda is one that depreciates slower, so be diligent about your routine
    car maintenance schedule
    . And it’s not just under the hood maintenance that counts—keeping your ride clean and waxed is not only nice for you, it helps maintain its value.
  • Color: Turns out, depreciation is not color-blind! Vehicles that are exotic colors tend to depreciate faster, so stick with white, black, and grayscale shades to minimize depreciation. 

Should you buy gap insurance for your Honda?

If you’ve ever financed a vehicle, odds are you’ve been offered
gap insurance
. Because new cars depreciate quickly, it’s possible that in the early days of your auto loan you might owe more than what the car is worth. 
If your Honda is stolen or totaled during this time, then gap insurance covers the difference between what the car is worth and the
actual cash value (ACV)
that your insurance pays out. The “gap” stands for Guaranteed Asset Protection, but it helps to think about it as covering the gap between what you owe and what your insurance pays. 
Gap insurance is more common with luxury vehicles that have a higher price tag (and faster rate of depreciation), but depending on what Honda you’ve purchased and how much you’ve put down on it, it might be a smart move. A fully loaded Honda Pilot can push into the $50,000 arena, which is a big chunk of change! 
Gap insurance is required with some financing arrangements, but it’s wise to consider it if you’re purchasing a more expensive model and/or aren’t making a large down payment. 
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