When you buy a car, you want one that will hold its value even after several years. A new report shows that vehicles that fall into that category might not be what you expect and cover a wide range of styles.
Automotive site iSeeCars recently released a study that indicates that the average car model depreciates 49.6% over the first five years.
The site analyzed sales records of more than 7.7 million new and used vehicles to identity which of them lose their value the least and most over that time period.
Here are some key findings from the report:
- Depreciating only 30% over the first five years, the Jeep Wrangler Unlimited has the best resale value
- The Maserati Quattroporte has the highest depreciation over five years, declining a whopping 72.2% ( or $95,393) on average
- Overall, SUVs, trucks, and sports cars hold their value the most
- Electric vehicles like the Chevrolet Volt and Nissan Leaf hold their value the least
Let's take a look at vehicles that depreciate the least, according to iSeeCars:
"While the average new vehicle loses nearly half of its value after five years, there are vehicles that retain more of their value and depreciate less than average," said iSeeCars CEO Phong Ly. "For consumers who purchase new vehicles and sell them after five years, choosing a car that holds its value is a smart economic decision."
You may be wondering which vehicles depreciate the most after five years. Findings from iSeeCars show that the highest-depreciating cars lose 68% or more of their value compared to the average vehicle.
When it comes to highest depreciation, there are four vehicles in the minus 70% club.
Here are the vehicles that depreciate the most, according to iSeeCars:
“If you plan on trading in or selling your next vehicle at around the five-year mark, a car that retains most of its value can lessen the expense of your purchase,” said Ly. “Conversely, if you are a used car shopper, choosing a car that has already taken a depreciation hit can provide you with a significant deal.”
Money expert Clark Howard says you can get great value by looking at pre-owned vehicles.
"My preference is for you to buy a two or three-year-old used car, rather than a new car. Because when you buy a new car, it loses value the minute you drive off the lot."
If you're interested in learning what to look for in a pre-owned vehicle, here's how to buy a used car .
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- 4 Tips for Better Car Maintenance on the Cheap
The post Here Are the Cars That Depreciate the Most and Least appeared first on Clark Howard.