10 New Cars That Hold Their Value
Most cars lose about 10% of their value just one month after being driven off the lot. (1) As a discerning car shopper, you want to minimize that damage so you can retain more of the investment that you made in your new vehicle.
Luxury sedans are the biggest culprit when it comes to losing value. Brands like Maserati and BMW lose their value at an exponential rate. This is to be expected; luxury car shoppers want a luxury experience, and buying a used car off of Craigslist doesn't exactly fit the bill. That, in combination with pricy repairs makes foreign and luxury cars tough to resell.
Trucks and SUV's hold their value much better. For one, these vehicles are usually made with tough, practical applications in mind. That means that manufacturers design them with more durability. Factors like brand loyalty and design play in as well. The Jeep Wrangler, for instance, maintains one of the highest resale values in the market because of its massive popularity among SUV owners and its timeless, iconic design. (2)
Car brands that hold their value the best have a reputation for long-term reliability and safety. Brands like Honda and Toyota tend to make the short list of cars with the best resale value because of their long history of making extremely dependable cars.
If you're in the market for a new car and want to make sure that you're making a good investment, resale value is a major factor you need to consider. Here's 10 new cars that will hold their value over the years.
1. Jeep Wrangler
While other Jeep models have a fairly low resale value, the Wrangler is an exception. Used Jeeps are often as expensive as brand-new ones. Part of the reason for their incredible resale value is the enthusiast culture that surrounds Wranglers. Hobbyists and off-road enthusiasts look for particular models of Wranglers in body styles that they prefer. The newer iterations of the Wrangler have given its rugged, off-road shell an increasingly luxurious interior. Because of this, it's a popular daily driver.
Average 5-Year Depreciation: 30.9% $ Drop Over 5 Years: $12,168
2. Toyota Tacoma
As mentioned previously, reliability is the biggest factor that contributes to resale value. A reputation for reliability drives demand for a used car.
Perhaps more than anything else, Toyota has a reputation for making ridiculously reliable cars and trucks. The Tacoma in particular has a cult following for its ability to go the distance, even at high mileage. An older Tacoma with over to 200,000 miles on the odometer will still fetch around $5,000 to $6,000.
The right features, along with reliability, will also drive resale value up in new cars. New new 4Runner features an 8-inch touchscreen with Apple Car Play and Amazon Alexa capabilities. It also features a Panoramic View Monitor and a Multi-Terrain Monitor in all models.
Average 5-Year Depreciation: 32.4% $ Drop Over 5 Years: $10,496
3. Porsche 911
Exotic cars aren't known for reliability or resale value. When people buy cars like the Porsche 911, they're buying performance. They're buying the elegant, red-blooded virility that the power of 640 horses provides.
Somehow, Porsche has managed to create a high-performance sports car that, although expensive to fix, is very reliable. In fact, Porsche has become somewhat known for its reliability in the past few years. That, on top of the demand for classic Porsches that exists today, make the Porsche 911 a safe bet for resale value.
Average Five-Year Depreciation: 36.0% $ Difference: $56,133
4. Subaru WRX
Subaru is another car brand known for reliability. Although the Forester and Outback are known for being high-value family cars, the WRX still holds its value more than any car Subaru makes.
The WRX isn't for everyone. Its peculiar, stiff driving style, loud engine, and overall quirkiness make it despised by some drivers. That same quirkiness, however, has birthed a small army of WRX loyalists who claim that it's the best, most affordable sports car you can buy.
Aside from being an affordable performance car, Subaru's reputation as a reliable Japanese car manufacture gives the WRX a high value.
Average 5-Year Depreciation: 39.8% $ Drop Over 5 Years: $14,192
5. Dodge Challenger
If there's one car that deserves the prefix 'muscle', it's the Challenger. The Challenger is unapologetic. It's not economical. It's not a 'safe' car, nor is it family-friendly. But it does what it was made to do very, very well, and that is provide a thrill of a ride in a ruggedly handsome package.
New Challengers continue to be one of the best cars to buy for resale value. That's because their classic styling and legendary performance makes them a collectible car among enthusiasts. New models provide features like in-console infotainments systems and ventilated seats.
Average 5-Year Depreciation: 40.6% $ Drop Over 5 Years: $16,303
6. GMC Canyon
GMC is known for producing a sturdy workhorse of a pickup truck. The Canyon is GMC's midsize pickup model, offering high value for people who want the versatility of a daily driver and a capable work vehicle. The Canyon comes with either a 4-cylinder or 6-cylinder engine with those two goals in mind.
While it is a capable truck, it's not the off-road vehicle that the Tacoma is. It's better for hauling supplies away from Home Depot.
The interior in most trucks isn't much to talk about, but the Canyon offers some pleasant surprises. The interior is quiet with a 4-inch display screen and impressive styling.
Average 5-Year Depreciation: 41.2% $ Drop Over 5 Years: $16,115
7. Toyota Tundra
The pickup truck for people who really want a pickup truck, the Toyota Tundra is the perfect vehicle for off-roading, towing, and outdoor enthusiasts. Trademark Toyota dependability means a new Tundra is one of the best cars you can buy as a long-term investment. (3)
Average 5-Year Depreciation: 37.0% $ Drop Over 5 Years: $17,020
8. Nissan Frontier
The 2020 Frontier is the exact same as it was 14 years ago, minus a few facelifts and the new powertrain. Although the interior of the truck (and the overall experience of driving it) truly show its age, it's still a great, midsize pickup truck. The Frontier will still hold its value over time due to its reliability and practicality. (4)
Average 5-Year Depreciation: 43.5% $ Drop Over 5 Years: $12,823
9. Volvo XC40
Volvo's vehicles has progressed quite a bit in terms of styling recently. The XC40 is a luxury SUV that beats every over vehicle in its class in terms of resale value. Among other things, Volvo buyers keep coming back because of safety. The XC40 includes active safety features like collision warnings and emergency auto brakes. It even comes with an assisted driving mode. (5)
Average 5-Year Depreciation: 34.6% $ Drop Over 5 Years: $11,660
10. Toyota Avalon
A bigger, de-tuned engine in this luxury sedan means longevity and a high resale value. The Avalon also boasts one of the most comfortable driving experiences around with its plush leather seats and buttery-smooth acceleration.
Average 5-Year Depreciation: 31.1% $ Drop Over 5 Years: $11,157
While some people are partial to one or two car manufacturers, there are great models in just about every brand. Any one of these vehicles is a safe bet for reliability, longevity, and value.