The average car in the U.S. costs a whopping $38,000, and though people are willing to pay that much, that shiny new car or truck according to Forbes.com will depreciate within five years by $19,000, an astonishing $3800 a year just vanishing right before your eyes.
It doesn’t have to be that way, however. You can buy ty if you a new car or truck and save plenty if you choose wisely.
And depreciation doesn’t only affect the car or trucks you buy. Lease rates are also greatly related to how quickly the vehicle depreciates.
What are the best available brands with the lowest depreciation rate
According to Edmunds.com the famed automotive shopping and review site, Toyota for its luxury vehicles were named by the company as the winner of its 2019 Best Retained Value Awards.
Other brands that tended to hold up well are Ram pickups, Jeep, Honda, and Porsche.
However, it might be just as important to you to know what not to buy if depreciation is important to you, and that includes BMW, Acura, Jaguar, Maserati, and pretty much any electric or hybrid car.
Trucks and SUVs generally held their value the most, while electric vehicles, hybrids, and luxury sports cars did the worse.
But don’t just go by the type of vehicle according to the data from IseeCars.com whom Forbes used to write their article.
The best in the SUV category was the Jeep Wrangler Unlimited, which had a 30 percent depreciation rate over five years, and the overall SUV category has a typical depreciation rate of around 50 percent.
However, the Lincoln MKT deprecated 68 percent, far worse than normal, and there were 9 other SUV’s that depreciated in the 60 percent and above range.
The highest depreciating brands, overall were Maserati, BMW, Cadillac, Lincoln, Volvo, Jaguar, Audi, Mercedes Benz, Infiniti and Buick, all who had over 60 percent depreciation.
The bottom line
It’s important to realize that depreciation alone should not overly influence you as to whether you want to buy a car or truck, particularly if you plan on keeping it for a long time.
Forbes also ran an article about vehicles that you can expect to get 250,000 miles from in, and it included Acura RDX, Honda Ridgeline, the Lexus RX250, and the Toyota Forerunner.
So when you decide to buy a car, weigh reliability against depreciation. If possible, get a vehicle with both reliability and low depreciation.