Everyone knows that the value of any car you buy will plummet with every passing year. Unless you’re purchasing a 1964 Ferrari 250 GTO, you can be sure that the value of your car in 5 years will be significantly less than the price you paid.
That’s the bum deal about cars, and it’s true whether buying new or used. Leasing is gaining in popularity for this very reason. The only exceptions to the rule of depreciation are a few collector cars that go up in price every time they hit the auction block.
Any car currently for sale at a dealership in the U.S. won’t be going to a prestigious auction anytime soon, so the best we can do as buyers is to purchase cars that depreciate more slowly than average. The 10 best cars for holding their value are listed below, and they all share one common trait.
Here they are, in order from 1 to 10, along with a percentage of their projected residual values after 5 years.
Toyota Tacoma (worth 60.4 percent of its original value)
Jeep Wrangler (58.9 percent)
Toyota Tundra (58.4 percent)
Chevrolet Colorado (58.3 percent)
GMC Canyon (57.5 percent)
GMC Sierra (55.6 percent)
Chevrolet Silverado (54.7 percent)
Toyota 4Runner (54.3 percent)
Ford F-150 (52.0 percent)
Honda CR-V (50.8 percent)
Where are the sedans? Where are the coupes? Where are the roadsters and sports cars?
All of the top 10 vehicles that hold their value best are trucks or SUVs/crossovers. Sixty percent of them are American trucks.
If you were to buy a 2015 Tacoma this year for $30,000, you could sell it in 2020 for about $19,200. Even that might be a low estimate. I did a search for 5-year-old Tacomas in my area on CarGurus and found five trucks priced between $22,000 and $28,000, which isn’t far off from the original MSRP.
You’ll obviously pay more for a used vehicle on this list, and it might make more financial sense to buy new if prices are that close. If you’re in the market for one of these vehicles, be sure to shop both new and used and see what kind of deal you can find.
Does resale value matter to you when buying a car?