Every new vehicle depreciates over time, but some cars have a higher average depreciation rate than others. This could be because of vehicle type, reliability ratings, or even demand. While it's tough to know exactly how much a car will depreciate over time, you can get an idea based on past performance.
Automotive website iSeeCars.com looked at this and determined which vehicles have the best and worst average depreciation rates. Here's what their findings look like:
Cars that Retain the Most Value
According to iSeeCars.com, these are the top 10 vehicles that retained their value the best over a recent five-year period:
Cars that Retain the Least Value
In addition, iSeeCars.com ranked these 10 vehicles as having the highest depreciation rate:
Why Does Depreciation Matter?
Although depreciation is put on the back burner for many car buyers, it's something they should pay attention to unless they're planning on keeping a vehicle well past the time it's paid off. Depreciation is constant, and can't be stopped. In fact, as soon as the car leaves the dealer's lot, it begins to depreciate. Within the first year of ownership, a new vehicle typically loses around 20 of it's value, and around 50 to 60 percent of it's value is lost over five years Depreciation is important if you buy a new car and plan on trading it in or selling it within three to five years of buying it -- as it could make a big difference in how much you could sell it for.
The Bottom Line
Vehicles depreciate over time, and while some depreciate at slower rate than others, you can't prevent it from occurring. What you can do is keep up with regular maintenance so your car retains as much value as possible during the time you own it.
If you need to finance a new or used vehicle, or have a car you want to trade in, but worry your bad credit is in the way, let Auto Masters of Murfreesboro help. We help car buyers find the financing they need by setting them up with local special finance dealerships. Start the process today by filling out our secure and free auto loan request form.
Charles Higgins has been in the automotive industry now for over 17 years. He has built a career by helping people with unique credit situations get financing. Charles believes everyone deserves the chance to build their credit while driving a reliable vehicle. Contact Charles today for your all of your credit needs.