Prices Remain High for Both New and Used Cars, Study Shows
Luxury cars depreciate the most, hearty Jeep Wrangler the least, and Porsches actually go up in value.
Khodrocar - Prices are still at all-time high levels for new, used, and off-lease cars, according to a recent study by the price-tracking car search engine iSeeCars.com.
"Pandemic-related disruptions to automaker supply chains and their impact on new-vehicle and used-vehicle pricing have dramatically affected retained value rates as well,” said iSeeCars.com Executive Analyst Karl Brauer. "An analysis of three- and five-year vehicle depreciation reveals that cars retain more value than they have in recent memory, and that a small number of cars have even appreciated in value.”
iSeeCars looks at millions of new- and used-car purchase and lease transactions to get its data. For this latest study, the firm analyzed over three million three-year-old and five-year-old used cars sold in 2022 and found the average five-year-old car lost only 33.3% of its value from MSRP. Compared to 2021, that represents a 17.0% decrease in depreciation, meaning the vehicles held their value better and longer.
The king of retained value is the humble and spunky Jeep Wrangler, which lost only 7.3% of its value after five years, losing only $2361 of its retail sticker price, followed by the Wrangler Unlimited which lost 8.7%. The Porsche 911 came in third, holding 14.6% of value after five years.
The worst vehicle in terms of five-year depreciation was the BMW 7-Series, which lost 56.9% of its sticker price over five years, or a whopping $61,923. That was followed by the Maserati Ghibli at 56.3% and $51,168, and the Jaguar XF at 54% and $36,081 after five years.
In fact, high-end luxury cars packed the top 10 biggest depreciators, with the Infiniti QX80, Cadillac Escalade ESV, Mercedes S-Class, Lincoln Navigator, Audi A6, Volvo S90, and Ford Expedition rounding out the 10 vehicles with the highest five-year depreciation according to the study.
So if you’re looking to save big bucks on a luxury car, buy used.
If you look at vehicles that depreciated the least after just three years, the Porsche 911 wins. It actually went up in value in three years, increasing in value by 5.7%, or $11,373. That was followed by the Toyota RAV4 Hybrid, up by 2.5% or $883; the Jeep Wrangler Unlimited, up by 2.0% and $880; the Porsche 718 Cayman, up 1.8% and $1342, and the Jeep Wrangler, up 0.3% and $90.
The upshot? Buy that Porsche! And that Wrangler you’ve always wanted. Throw these stats at the significant other—there can be no refutation of your argument. But click on iSeeCars.com and throw still more stats out there. The time for Porsche and Jeep buying is now.
"Demand for both new and used cars remains high, keeping their prices high and depreciation low,” Brauer says. "While that shiny new Chevrolet Corvette, GMC Yukon, Land Rover Range Rover Velar or Lexus IS may look great on the showroom floor, consumers looking to buy a car should consider how long they plan to own it and how much depreciation they want to experience when it’s time to sell or trade in their vehicle. Models with the lowest depreciation tend to cost more up front, but the higher purchase price can be more than made up in reduced loss of value over time.”
But remember, this is all based on values from the last three and five years. What’s going to happen in the next three and five years? If you know that, buy a lottery ticket.
"Pandemic-related disruptions to automaker supply chains and their impact on new-vehicle and used-vehicle pricing have dramatically affected retained value rates as well,” said iSeeCars.com Executive Analyst Karl Brauer. "An analysis of three- and five-year vehicle depreciation reveals that cars retain more value than they have in recent memory, and that a small number of cars have even appreciated in value.”
iSeeCars looks at millions of new- and used-car purchase and lease transactions to get its data. For this latest study, the firm analyzed over three million three-year-old and five-year-old used cars sold in 2022 and found the average five-year-old car lost only 33.3% of its value from MSRP. Compared to 2021, that represents a 17.0% decrease in depreciation, meaning the vehicles held their value better and longer.
The king of retained value is the humble and spunky Jeep Wrangler, which lost only 7.3% of its value after five years, losing only $2361 of its retail sticker price, followed by the Wrangler Unlimited which lost 8.7%. The Porsche 911 came in third, holding 14.6% of value after five years.
The worst vehicle in terms of five-year depreciation was the BMW 7-Series, which lost 56.9% of its sticker price over five years, or a whopping $61,923. That was followed by the Maserati Ghibli at 56.3% and $51,168, and the Jaguar XF at 54% and $36,081 after five years.
In fact, high-end luxury cars packed the top 10 biggest depreciators, with the Infiniti QX80, Cadillac Escalade ESV, Mercedes S-Class, Lincoln Navigator, Audi A6, Volvo S90, and Ford Expedition rounding out the 10 vehicles with the highest five-year depreciation according to the study.
So if you’re looking to save big bucks on a luxury car, buy used.
If you look at vehicles that depreciated the least after just three years, the Porsche 911 wins. It actually went up in value in three years, increasing in value by 5.7%, or $11,373. That was followed by the Toyota RAV4 Hybrid, up by 2.5% or $883; the Jeep Wrangler Unlimited, up by 2.0% and $880; the Porsche 718 Cayman, up 1.8% and $1342, and the Jeep Wrangler, up 0.3% and $90.
The upshot? Buy that Porsche! And that Wrangler you’ve always wanted. Throw these stats at the significant other—there can be no refutation of your argument. But click on iSeeCars.com and throw still more stats out there. The time for Porsche and Jeep buying is now.
"Demand for both new and used cars remains high, keeping their prices high and depreciation low,” Brauer says. "While that shiny new Chevrolet Corvette, GMC Yukon, Land Rover Range Rover Velar or Lexus IS may look great on the showroom floor, consumers looking to buy a car should consider how long they plan to own it and how much depreciation they want to experience when it’s time to sell or trade in their vehicle. Models with the lowest depreciation tend to cost more up front, but the higher purchase price can be more than made up in reduced loss of value over time.”
But remember, this is all based on values from the last three and five years. What’s going to happen in the next three and five years? If you know that, buy a lottery ticket.
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