CarTrek Used Car Price Tracker: Depreciation by Make/Model
Last updated: March 2026
Used Car Price Tracker: Depreciation by Make/Model
Every car starts losing value the moment you drive it off the lot. But how fast — and how much — depends enormously on what you bought. A Toyota Tacoma retains roughly 75% of its value after five years. A Lucid Air can lose over 60% in the same period. Understanding depreciation is the difference between a smart purchase and an expensive mistake.
This guide explains how car depreciation works, shows you which makes and models hold their value best (and worst), and walks you through a manual calculation so you can estimate the future value of any vehicle.
Key Takeaways
- The average new car loses approximately 55% of its value in the first five years.
- Year one is the steepest drop — expect a 20 to 30% loss.
- Trucks and body-on-frame SUVs depreciate the slowest; luxury sedans and some EVs depreciate the fastest.
- Toyota and Porsche consistently lead in value retention across all segments.
- Buying a 2- to 3-year-old used vehicle lets you skip the worst depreciation hit while still getting a modern car.
How Car Depreciation Works
Depreciation is the difference between what you paid for a vehicle and what it is worth at any point afterward. It is driven by several factors:
| Factor | Impact |
|---|---|
| Brand reputation | Toyota, Honda, Porsche hold value; luxury European brands lose more |
| Body style | Trucks and SUVs retain more than sedans |
| Powertrain | Hybrids are strong; some EVs depreciate fast due to rapid tech changes |
| Mileage | Higher mileage = lower value; average is ~12,000 miles/year |
| Condition | Maintenance records, accident history, and cosmetic condition matter |
| Market demand | Supply shortages boost used values; oversupply depresses them |
| Color | Neutral colors (white, black, gray) hold value better than unusual colors |
Depreciation by Year: The Average Curve
Here is the typical depreciation curve for an average new car:
| Vehicle Age | Approx. Value Retained | Cumulative Loss |
|---|---|---|
| New (off the lot) | 90–95% | 5–10% |
| 1 year | 70–80% | 20–30% |
| 2 years | 65–72% | 28–35% |
| 3 years | 58–65% | 35–42% |
| 4 years | 50–58% | 42–50% |
| 5 years | 40–50% | 50–60% |
| 7 years | 30–40% | 60–70% |
| 10 years | 20–30% | 70–80% |
After year five, depreciation slows significantly. This is why many financial advisors recommend buying used vehicles in the 2- to 4-year-old sweet spot — the original owner absorbed the steepest losses.
Best Value Retention by Make (5-Year)
Based on 2026 data from CarEdge and Kelley Blue Book:
Top 10 Slowest-Depreciating Vehicles
| Rank | Vehicle | 5-Year Value Retained | Type |
|---|---|---|---|
| 1 | Porsche 911 | ~91% | Sports car |
| 2 | Toyota Tacoma | ~75% | Mid-size truck |
| 3 | Jeep Wrangler | ~73% | Off-road SUV |
| 4 | Toyota 4Runner | ~70% | Mid-size SUV |
| 5 | Toyota Corolla Cross | ~68% | Compact SUV |
| 6 | Subaru Crosstrek | ~66% | Compact SUV |
| 7 | Honda Civic | ~65% | Compact car |
| 8 | Toyota Camry | ~63% | Midsize sedan |
| 9 | Ford Bronco | ~63% | Off-road SUV |
| 10 | Tesla Model Y | ~62% | EV SUV |
5 Fastest-Depreciating Vehicles
| Rank | Vehicle | 5-Year Value Retained | Type |
|---|---|---|---|
| 1 | Lucid Air | ~35% | EV luxury sedan |
| 2 | Maserati Quattroporte | ~36% | Luxury sedan |
| 3 | BMW 7 Series | ~38% | Luxury sedan |
| 4 | Mercedes-Benz S-Class | ~39% | Luxury sedan |
| 5 | Jaguar F-Pace | ~40% | Luxury SUV |
The pattern is clear: mainstream trucks and SUVs from Toyota, Jeep, and Ford hold value best. Luxury sedans and niche EVs lose value fastest.
How to Calculate Depreciation Manually
You do not need a paid tool to estimate your car’s depreciation. Here is a manual method:
Step 1: Find Your Car’s Original MSRP
Look up the original MSRP for your vehicle’s exact year, make, model, and trim on Edmunds or Kelley Blue Book.
Example: 2023 Toyota RAV4 XLE — Original MSRP: $31,000
Step 2: Apply the Average Annual Depreciation Rate
Use the year-by-year rates from the curve above, or use a simplified formula:
Estimated Current Value = Original MSRP x (1 - Annual Depreciation Rate)^Years
For most mainstream vehicles, use these annual rates:
- Year 1: 25%
- Years 2–3: 10% per year
- Years 4–5: 8% per year
- Years 6–10: 5% per year
Step 3: Work Through the Example
For our 2023 RAV4 XLE (now 3 years old in 2026):
- After Year 1: $31,000 x 0.75 = $23,250
- After Year 2: $23,250 x 0.90 = $20,925
- After Year 3: $20,925 x 0.90 = $18,833
Estimated value in 2026: ~$18,800
Step 4: Adjust for Your Specific Situation
Adjust up or down based on:
- Mileage: Add 5% for significantly below-average miles; subtract 5–10% for above-average.
- Condition: Excellent condition adds 5–10%; rough condition subtracts 10–20%.
- Market demand: Check current listings on Autotrader, Cars.com, and CarGurus to see what similar vehicles are actually selling for.
For a quick automated estimate, try our Car Value Estimator. If you are looking at EV depreciation specifically, see our EV Buyer’s Guide for how tax credits affect resale values.
Using Depreciation Data to Buy Smart
Best Strategy for Buyers
Buy a vehicle that is 2 to 3 years old from a brand with strong value retention. You get:
- 30 to 40% off the original price
- A still-modern vehicle with current safety tech
- Remaining factory warranty on many models
- A slower depreciation curve going forward
Use our Used Car Inspection Checklist before finalizing any used purchase, and check our New vs Used Car Guide for a deeper comparison.
Best Strategy for Sellers
Sell or trade in before the 5-year mark, when the depreciation curve flattens. The biggest loss happens between years 1 and 3 — if you already own a vehicle past that point, you may be better off keeping it longer rather than trading in during the steepest part of the curve.
For trade-in preparation, see our How to Sell Your Car guide.
Best Strategy for Leasers
If you lease, depreciation is already baked into your payment. However, understanding residual values helps you evaluate whether a lease deal is fair. A vehicle with strong value retention will have a higher residual, which means lower monthly payments. Our Car Loan Calculator can help model different lease scenarios.
Frequently Asked Questions
Why do trucks hold their value so much better than sedans?
Supply and demand. Trucks serve both commercial and personal purposes, broadening the buyer pool. Models like the Tacoma and Wrangler also have cult followings, and manufacturers have historically constrained inventory on high-demand trims, keeping used prices elevated. See our F-150 vs Silverado 2026 comparison for how the top trucks stack up.
Do EVs depreciate faster than gas cars?
It depends on the brand. Tesla models hold value relatively well due to the Supercharger network and software updates. However, many other EVs — especially luxury models like the Lucid Air — depreciate rapidly because technology evolves quickly, newer models offer more range at lower prices, and the used EV market is still maturing.
What color car holds its value best?
Neutral colors — white, black, and gray — consistently yield the highest resale values because they appeal to the broadest pool of used-car buyers. Unusual colors like bright orange or lime green may attract a niche audience but can limit your buyer pool.
How does mileage affect depreciation?
The average American drives approximately 12,000 miles per year. Vehicles significantly above that average (say, 18,000+ miles per year) depreciate faster because higher mileage correlates with more wear and shorter remaining useful life. Conversely, very low-mileage vehicles command a premium on the used market.
Is a certified pre-owned (CPO) car worth the premium?
Often, yes. CPO vehicles typically come with an extended manufacturer warranty, a multipoint inspection, and roadside assistance. The premium over a comparable non-CPO vehicle is usually 5 to 10%, which can be worth it for the peace of mind — especially on vehicles with complex technology or known reliability concerns.