A car begins to depreciate as soon as you drive it off the lot — but not all cars lose as much value over time. The car that holds its value better than any other in America is the Jeep Wrangler.
Used cars have done relatively well recently. Sizing up the car market over the past year, iSeeCars Executive Analyst Karl Brauer put it this way, “We’ve seen record high used car prices over the past 15 months as a result of the microchip shortage, and that has slowed down the average depreciation rate across all vehicles.”Â
Still, Brauer added that indeed “Vehicles that have historically maintained their value well have depreciated even less this past year, but even in today’s market some cars continue to drastically drop in value.” (Find out which is the longest lasting cars on the road.)
Car prices, both used and new, have skyrocketed in the past year for several reasons. Among them is pent-up demand. Dealerships were closed for weeks, and sometimes months, due to the COVID-19 pandemic.Â
More recently, the supply of cars has plummeted, due in part to a severe shortage of the semiconductors used in car electronics systems. This shortage will not let up until next year. In the meantime, many dealers are nearly empty of inventory, and manufacturers have had to shutter some assembly lines. (As for new cars, these are the fastest selling cars in America right now.)
The reason for used car price spikes is simple. People who do not want to wait for the latest make and model of the cars they want buy them used instead. Yet, not all cars hold their value well over time, despite this recent surge in demand.
For its Top 10 Cars That Hold Their Value Best: Five-Year-Car Depreciation Across All Vehicle Segments study, research and car sales company iSeeCars reviewed more than 800,000 used cars from model year 2016 sold between January and August 2021 to find those with the lowest and highest loss in value from manufacturer’s suggested retail price after five years.Â
24/7 Wall St. reviewed iSeeCars study and listed the 20 cars that hold their value the best. While the average five-year depreciation across all vehicles considered was 40.1%, the cars on this list lost 31.2% of their value or less over the last five years.
The car with the lowest five-year depreciation is the Jeep Wrangler at only 9.2%. The car with the second-lowest depreciation is a Jeep as well, the Jeep Wrangler Unlimited, which has four doors and a five-year depreciation rate of only 10.5%.
Jeep Wranglers retain their value “due to their enthusiastic fanbase, as well as their durability and performance across all terrains, especially off-road. Jeep Wranglers also have maintained their iconic design, so even older models don’t appear dated.”
Click here to see the car that holds its value better than any other in America
Source: Heritage Images / Hulton Archive via Getty Images
20. Mazda MX-5 Miata
> Five-year depreciation (pct.) 31.2%
> Dollar difference: $10,288
[in-text-ad]
Source: Bill Pugliano / Getty Images News via Getty Images
19. Chevrolet Silverado 1500
> Five-year depreciation (pct.) 31.0%
> Dollar difference: $13,441
Source: Courtesy of GMC
18. GMC Sierra 1500
> Five-year depreciation (pct.) 30.7%
> Dollar difference: $13,649
Source: Raymond Boyd / Michael Ochs Archives via Getty Images
17. Honda Civic
> Five-year depreciation (pct.) 30.4%
> Dollar difference: $7,240
[in-text-ad-2]
Source: subaru.com
16. Subaru WRX
> Five-year depreciation (pct.) 29.4%
> Dollar difference: $10,339
15. Subaru BRZ
> Five-year depreciation (pct.) 28.0%
> Dollar difference: $8,601
[in-text-ad]
Source: Raymond Boyd / Michael Ochs Archives via Getty Images
14. Nissan Frontier
> Five-year depreciation (pct.) 27.8%
> Dollar difference: $8,391
Source: Raymond Boyd / Michael Ochs Archives via Getty Images
13. Chevrolet Corvette
> Five-year depreciation (pct.) 27.7%
> Dollar difference: $23,535
Source: Scott Legato / WireImage via Getty Images
12. Chevrolet Colorado
> Five-year depreciation (pct.) 27.1%
> Dollar difference: $7,677
[in-text-ad-2]
Source: Bill Pugliano / Getty Images
11. GMC Canyon
> Five-year depreciation (pct.) 25.6%
> Dollar difference: $8,088
Source: toyota.com
10. Toyota 4Runner
> Five-year depreciation (pct.) 24.6%
> Dollar difference: $10,818
[in-text-ad]
Source: Raymond Boyd / Michael Ochs Archives via Getty Images
9. Dodge Challenger
> Five-year depreciation (pct.) 24.4%
> Dollar difference: $10,308
Source: Raymond Boyd / Michael Ochs Archives via Getty Images
8. Chevrolet Camaro
> Five-year depreciation (pct.) 23.6%
> Dollar difference: $8,553
Source: Hirkophoto / Getty Images
7. Chevrolet Corvette
> Five-year depreciation (pct.) 22.7%
> Dollar difference: $17,655
[in-text-ad-2]
Source: Konoplytska / Getty Images
6. Ford Mustang
> Five-year depreciation (pct.) 21.0%
> Dollar difference: $7,280
Source: toyota.com
5. Toyota Tundra
> Five-year depreciation (pct.) 19.5%
> Dollar difference: $8,458
[in-text-ad]
Source: Scott Olson / Getty Images
4. Toyota Tacoma
> Five-year depreciation (pct.) 13.8%
> Dollar difference: $4,899
24/7 Wall St.
Source: VanderWolf-Images / Getty Images
3. Porsche 911
> Five-year depreciation (pct.) 12.8%
> Dollar difference: $20,710
Source: Raymond Boyd / Michael Ochs Archives via Getty Images
2. Jeep Wrangler Unlimited
> Five-year depreciation (pct.) 10.5%
> Dollar difference: $3,810
[in-text-ad-2]
Source: Robert Hradil / Getty Images
1. Jeep Wrangler
> Five-year depreciation (pct.) 9.2%
> Dollar difference: $2,796
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
