Top 8 Cars With The Least Depreciation Over Five Years
Depreciation is one of the primary reasons why a car loses value during its first five years. However, some models depreciate less compared to other models.
Read on if you’re looking for the most optimal car purchase and eventual resale value.
How Does Depreciation Affect Car Financing?
Car depreciation is an inevitable fact. After you have purchased a new or used vehicle, you’ll start making payments on that vehicle. Due to the interest accrued on a conventional car loan, the outstanding principal balance of the car loan is usually reduced very slowly.
Depending on the type of vehicle you purchase, your car can decline in value at a much faster pace than the principal balance of the loan. If this happens, you’ll eventually reach a point where you owe more money to the bank than what your vehicle is actually worth. This loan situation is termed ‘upside down’. It means you’ll have to come up with extra money to cover the loan balance, even if you decide to sell the car.
Which Cars Depreciate The Least
Almost every car loses its value over five years. However, there are some models that have a comparatively lower rate of depreciation. Here are the market’s top eight cars worth exploring to help minimize your chances of going upside down on a loan.
Jeep Wrangler
The Jeep Wrangler ranks at the top among the slowest depreciating cars. It loses around 30.75% value in the initial five years.
- Excellent off-road capabilities
- Strong diesel and petrol engine options
- Impressive audio clarity
- Instinctive tech features
The MSRP of this SUV ranges between $33,495 to $42,195 which comes to a difference of $8,700 for the newest model.
Toyota Tacoma
The midsize Toyota Tacoma truck comes with a depreciation curve of around 32% in the first five years.
- Standardized features with amazing interiors
- User-friendly technology
- Brilliant off-roading abilities
The Toyota Tacoma MSRP ranges from around $26,050 to $46,665 with a difference of about $8,336 in the five years.
Toyota Tundra
If you’re looking for something similar to the Tacoma, the Tundra is the best choice to go with. The car loses around 35.9% of its value in five years.
- Standard V8 power
- Advanced safety and driver assistance features
- Off-road capabilities
The average MSRP of a Toyota Tundra ranges between $33,575 to $48,656 with a difference of $12,000 after completion of five years.
Porsche 911
A top of the line sports car, the Porsche 911 loses merely 37.2% of its value which is a difference of $36,735 in five years.
- Improved driving confidence with flawless handling
- Powerful and fuel-efficient engines
- Premium and customizable interiors
- Exceptionally agile
The Porsche 911 comes with an average MSRP of $97,400 to $120,600.
Honda Ridgeline
With a depreciation percentage of merely 38%, this truck from Honda declines by around $11,426 in the initial five years.
- Advanced two-way tailgate
- Additional lockable in-bed truck
- Comfortable interiors with amazing finishing
- Independent rear suspension for greater rides
This long-standing truck from Honda is available at an MSRP ranging from $33,900 to $43,520.
Nissan GT-R
Introduced in 2020, the Nissan GT-R is among the rare luxurious sports cars that come with a reduced depreciation value of 39.4%, which makes a difference of $44,848 in five years.
- Explosive acceleration with twin-turbo V6
- Easy driving with additional performance
- Comfortable interiors for convenient riding
The Nissan GT-R is available at an MSRP of $113,540 to $210,740.
Nissan Frontier
A reliable choice from Nissan is the Frontier. This vehicle loses its value to around 39.5% over five years, which makes a difference of only $7,620.
- Off-road capabilities with Pro-4X model
- Available with manual and automatic transmission
- Amazing reliability rating
- V6 engine capabilities
The Nissan Frontier 2020 can be booked at an MSRP of $19,290 to $33,730.
Subaru WRX
The Subaru WRX is the best sedan on the list with a depreciation reduction value of around 40%, which drops the value to $10,998 in five years.
- Amazing steering and handling responses for curved roads
- All-wheel full-time driving facets for improved performance
- Increased safety measures
This car is available at an MSRP that ranges from $27,495 to $32,995.
Loan Options
After you have selected the model, your first step will be to check out the various loan options available. Make sure you check out all the options by properly considering the interest rates and eligibility criteria, along with other financial requirements. Learn about the pre-approval options that can assist you in obtaining the best price from the dealers.
You can compare and review details from popular lenders such as Capital One, Carvana, LendingClub, OpenRoad, Consumer Credit Union, and more.
Bottom Line
No matter the type of car, it’s important to consider the long-term cost of it. When you take into account the depreciation rate, you’ll be able to better estimate its worth and ROI. Once you have selected the right model, make sure to check out numerous reviews and plans for financing.
