The cars that hold their value best are SUVs with a truck-like body, sports cars, and trucks such as the Toyota 4Runner, Dodge Challenger, and Chevrolet Camaro.

Written by Mary Cahill

Reviewed by Jessica Barrett

Updated on Jun 12, 2023

Table of Contents

What is depreciation?
Why is low depreciation important?
What vehicles hold their value best?
Finding affordable insurance for your car
FAQs

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A car that holds its value will command a higher resale price when you decide it’s time to sell. According to a recent study, the cars that top the list for holding their value in 2021 are trucks, SUVs with a truck-like body style, and

sports cars

. When shopping for a vehicle, you’ll want to consider one with low depreciation.

Value is determined by much more than just the type of car you choose to buy. Something else to factor in is finding the best deal on

car insurance

to help offset the cost of your

car loan

. When it comes to saving the most money possible on your policy,

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In addition to providing you with the most competitive quotes out there, Jerry has put together a comprehensive guide on the importance of low depreciation and which vehicles best hold onto their value over time.

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What is depreciation?

The rate at which a vehicle loses its value over time is known as depreciation. On average, a new car depreciates at a rate of 49.1% over the course of five years. Trucks, certain SUV models, and sports cars have the lowest depreciation percentages, while luxury sedans have the highest rate of depreciation.

What factors contribute to a car’s depreciation?

When cars are assessed for their value, certain contributing factors can chip away at how much they’re worth. These include:

Age: A car’s value decreases the older it gets.

Mileage: High mileage typically shortens the lifespan of a vehicle.

Overall condition: Worn out or damaged interior or defects in the vehicle’s body will affect the resale price.

Make and model: Vehicles with a reputation for performance and longevity hold their value longer.

Color: Popular classic shades like black and silver resell for a higher price than vehicles with atypical or custom colors.

Fuel efficiency: A vehicle that uses a lot of gas may not sell for as much as one with better fuel economy.

Why is low depreciation important?

A low depreciation rate keeps your overall payments on your vehicle reasonable. When you sell your vehicle for a price that is close to what you paid for it, you’ll know you’ve made a worthwhile investment.

Since a lot of cars lose 20% of their value in the first year, if you don’t put a 20 to 25% down payment on your vehicle you may find yourself in a situation where you owe more on your loan than the car is worth. By putting down a bit more money upfront, you can save yourself from having to shell out in the future.

MORE:

How to determine the retail value of your used car

What vehicles hold their value best?

In a new study, depreciation data was examined from 800,000 vehicle sales in 2021 of five-year-old cars. Now that you know what goes into a car’s depreciation rate, let’s take a look at the top 10 vehicles that lost the lowest percentage of their original value.

Toyota 4Runner

Depreciation: 24.6%

Toyotas

stand out for their reliability and the 4Runner is no exception. This rugged SUV hasn’t undergone a lot of changes to its body style over the years which may be why it’s been featured on the low depreciation list year after year.

Dodge Challenger

Depreciation: 24.4%

This is a timeless American muscle car that remains popular today. Keeping up with your

Challenger

’s regular maintenance will maximize its resale price.

Chevrolet Camaro

Depreciation: 23.6%

The

Camaro

is a great choice for those looking for an affordable sports car. Camaro owners will stretch their money even further thanks to the low depreciation rate. Offering driveability and consistency in its body style has brought the Camaro continued success.

Chevrolet Corvette

Depreciation: 22.7%

Another classic US sports car, the

Corvette

boasts an impressively low depreciation rate. When well maintained, its powerful V8 engine and sleek profile keep resale values high.

Ford Mustang

Depreciation: 21%

Ranking higher than its fellow sporty American models, the

Ford Mustang

is depreciating by a mere 21% over five years. Part of what boosts the Mustang’s resale rate is the variety of features and engine capabilities on the market.

Key Takeaway American sports cars are among the cars that hold their value best.

Toyota Tundra

Depreciation: 19.5%

The

Tundra

is the biggest truck on the list and has maintained its position on the low depreciation list from last year. If you’re looking to save money on gas, the Tundra is also available as a hybrid model.

Toyota Tacoma

Depreciation: 13.8%

Pickup trucks have an excellent resale value because of their remarkable durability and ability to perform well even when they have upwards of 200,000 miles on the odometer. The

Tacoma

is Toyota’s midsized offering with an enviable depreciation rate.

Porsche 911

Depreciation: 12.8%

One sports car in particular is ahead of the curve when it comes to holding its value. Not only is the

Porsche 911911

a stunner, but its ability to hold its value is downright impressive. A depreciation rate this low makes a good case for the high manufacturer’s suggested retail price.

MORE:

How to buy a car from a private seller

Jeep Wrangler Unlimited

Depreciation: 10.5%

As most

Wrangler

owners know, this SUV with a truck-like body style is built to last. The Unlimited is Jeep’s four-door model and is increasingly popular, due in part to its extremely low depreciation rate.

Jeep Wrangler

Depreciation: 9.2%

Wrangler devotees have good reason to stick with the two-door

Jeep

model. The Wrangler is an agile off-roader that keeps on chugging long after hitting the 200,000-mile mark. In fact, the average lifespan for a Wrangler is 10 to 15 years.

Finding affordable insurance for your car

Once you’ve found your next car, you’ll want to complement your purchase with affordable

car insurance

. Finding the cheapest price can be a daunting task—but that’s where

Jerry

comes in.

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