In some ways, buying a new car is like taking a step off a financial cliff. As soon as you drive off the dealer’s lot, the car begins to depreciate in value. However, not all cars depreciate at the same rate. Various factors such as brand, model, color, and features play a crucial role in determining the depreciation of a vehicle.
The reputation of a brand can significantly impact the future value of a car. Similarly, cars equipped with advanced features and options like leather seats, advanced entertainment systems, and safety features tend to retain higher resale values. Additionally, factors such as mileage, overall condition, maintenance records, and any damage to the vehicle can also affect its resale value.
For consumers planning to purchase a new vehicle, it’s essential to be aware of which models are expected to experience a significant price drop in 2026. Gobankingrate, a financial website, has compiled a list of three models that are projected to see a substantial decrease in price, along with three vehicles known for their strong resale value and worth considering in 2026.
Starting at $28,140, the Nissan Altima is one model expected to see a significant drop in value due to ongoing financial struggles at Nissan. The company’s plan to close several assembly plants in Mexico and its declining global sales have contributed to the Altima’s depreciation. Furthermore, the continual troubles with the CVT transmission system have led Nissan to announce a complete halt in Altima production by mid-2026.
On the contrary, the Honda Accord is projected to retain approximately 63% of its original value after five years, according to CarEdge’s research. The Accord comes equipped with features such as a 7-inch touchscreen, Apple CarPlay, Android Auto, and automatic climate control. The top-tier SE model, priced at $30,560, offers additional features like a sunroof and heated front seats.
Experts like Alan Gelfand from the German Car Depot point out three main factors affecting the resale demand for Tesla’s Model S: rapid advancements in battery technology, unstable manufacturing standards, and Tesla’s aggressive pricing strategy. Buyers who spent $86,880 or more on a Model S found their cars depreciating by half in just a few years. Similarly, the 2022 Model 3 was recognized by U.S. News & World Report as one of the fastest depreciating vehicles, with a depreciation rate of 61% over three years.
The Lexus LS, known for its exceptionally high resale value in 2025, remains one of the most outstanding full-size luxury sedans in the market. It boasts advanced technology and practical features, including a cutting-edge hybrid powertrain option that ensures long-lasting performance on the road. The comfort, quietness, and craftsmanship of the LS exemplify meticulous attention to detail, leaving a lasting impression on drivers.
Priced at $37,095, the Cadillac CT4 is slated to cease production at the Lansing plant in Michigan in June 2026. Fisher explains that sedans are no longer as popular in the current automotive market, and a sedan that is officially discontinued is likely to depreciate even faster. The CT4 has been recognized on the Kelley Blue Book list for its high resale value, with Fisher highlighting the Integra’s reputation for reliability and strong resale value. Furthermore, the Integra is priced thousands of dollars lower than the soon-to-be-discontinued CT4, making it a compelling alternative.