Buying a new car is a significant investment for most people, and one of the crucial factors to consider is the resale value of the vehicle. By examining the depreciation rate of cars, one can gain insights into the performance, durability, and popularity of specific models, making it a key reference point for car buyers.
On March 25, the automotive search and research company iSeeCars analyzed over 800,000 5-year-old used cars sold between March 2024 and February 2025 to determine the 5-year depreciation rates of different car models and the overall depreciation rate of all cars.
The analysis revealed significant differences in the depreciation rates of different car segments, with electric cars experiencing the highest depreciation after purchase, losing 58.8% of their value within 5 years. Trucks and hybrid cars retained their value the most, depreciating by 40.4% and 40.7% respectively.
Sports cars like the Porsche 911 and 718 Cayman (Cayenne), Chevrolet Corvette, Toyota RAV4, and Honda CR-V dominated the top 25 ranking of cars with the best resale value.
Electric vehicles and luxury models such as the Jaguar I-PACE, BMW 7 Series, Tesla Model S, and Nissan LEAF accounted for 23 out of the 25 cars with the highest depreciation rates.
The depreciation rates for all car models in 2025 were higher compared to 2023, reflecting a general decrease in used car prices since the peak during the pandemic. This data suggests that new cars will incur more losses after 5 years due to slow recovery of both new and used car supplies post COVID-related factory shutdowns.
The average depreciation rate for all vehicles stood at 45.6%, higher than the 38.8% decrease in 2023 but lower than the 49.6% decrease in 2019.
iSeeCars’ executive analyst Karl Brauer noted, “Depreciation remains a significant cost factor when buying a new car. The differences between vehicle types and specific models should be considered by consumers when researching their next purchase.”
“The difference between buying a hybrid car and an electric car could result in value losses of tens of thousands of dollars,” he added.
Among the top 25 models with the best resale value, Toyota vehicles accounted for eight slots, with Honda’s popular sedan Civic ranking fifth.
1. Porsche 911 sports car: 19.5%
2. Porsche 718 Cayman sports car: 21.8%
3. Toyota Tacoma pickup truck: 26.0%
4. Chevrolet Corvette coupe: 27.2%
5. Honda Civic sedan/hatchback: 28.0%
6. Chevrolet Camaro sports car: 28.0%
The demand for compact SUVs like the Toyota RAV4, Honda CR-V, and Subaru Forester remains strong in the new car market, translating into high resale values in the used car market.
1. Toyota RAV4/RAV4 Hybrid: 30.9%
2. Subaru Crosstrek: 33.0%
3. Honda HR-V: 34.0%
4. Honda CR-V: 35.2%
5. Subaru Forester: 37.9%
According to Brauer, “The combination of practicality, fuel efficiency, and affordable prices makes compact SUVs one of the most popular categories in the industry, both for new and used car buyers.”
The overall 5-year average depreciation rate for small SUVs is 45.5%.
In the electric vehicle category, only two electric cars (Tesla Model 3 and Hyundai Kona Electric) had depreciation rates lower than the average of 58%. However, electric cars were rare five years ago, with the Jaguar I-PACE ranking the worst, depreciating by over 72% in 5 years.
The overall 5-year average depreciation rate for electric cars was 58.8%, with the following models showing the best resale value:
1. Tesla Model 3: 55.9%
2. Hyundai Kona Electric: 58.0%
3. Kia Niro EV: 59.2%
4. Porsche Taycan: 60.1%
5. Tesla Model Y: 60.4%