Car depreciation & the best time to buy
A new car loses about 41.8% of its value in five years — and most of that drop happens in the first two or three. So the cheapest way to own almost any car is to let someone else eat the cliff: buy it a few years old, hold it through the flat years, then sell. Using real year-by-year resale data plus typical upkeep, we compute each model's own best buy age — it isn't the same for every car. Here's the cost, by model. Every car page includes a depreciation chart and estimated resale values by model year.
Estimates as of July 2026.
Car depreciation by year: the average curve
Averaged across the 26 models we track, here is what a new car is worth as it ages. The drop is front‑loaded — roughly 13.4% gone in year one and 28% by year three, after which the curve flattens out.
% of the original price still retained, by age.
| Age | Model year | Lost that year | Lost in total | Value retained |
|---|---|---|---|---|
| 1 year | 2025 | 13.4% | 13.4% | 86.6% |
| 2 years | 2024 | 7.2% | 20.6% | 79.4% |
| 3 years | 2023 | 7.4% | 28% | 72% |
| 4 years | 2022 | 6.9% | 34.9% | 65.1% |
| 5 years | 2021 | 6% | 40.9% | 59.1% |
Depreciation by body type
Five‑year depreciation varies more by body type than most buyers expect: Sports models lose about 23.5%, while Luxury models lose roughly 62.1% — a wider gap than between most individual cars.
| Body type | Models tracked | 5‑yr depreciation |
|---|---|---|
| Sports | 2 | 23.5% |
| Hybrid | 1 | 25.8% |
| Sedan | 3 | 31.3% |
| Truck | 5 | 35.1% |
| SUV | 7 | 35.4% |
| EV | 3 | 54.5% |
| Luxury | 5 | 62.1% |
Some body types are represented by only one or two models — the count is shown so you can weigh each figure accordingly.
Which cars hold value best — and which drop fastest
| Holds value best | Type | 5‑yr depreciation |
|---|---|---|
| Toyota Tacoma | Truck | 21.3% |
| Chevrolet Corvette | Sports | 22% |
| Toyota Tundra | Truck | 23.9% |
| Porsche 911 | Sports | 25% |
| Toyota Sienna | Hybrid | 25.8% |
| Drops fastest | Type | 5‑yr depreciation |
|---|---|---|
| Maserati Ghibli | Luxury | 71.6% |
| Nissan Leaf | EV | 69% |
| Audi A6 | Luxury | 63.5% |
| BMW 7 Series | Luxury | 61% |
| BMW X7 | Luxury | 59% |
What each model costs per year to own
| # | Model | Type | ~New price | 5‑yr depreciation | Best age to buy | $/yr if bought new | $/yr at best age | You save |
|---|---|---|---|---|---|---|---|---|
| 1 | Honda Accord | Sedan | $33,500 | 33.4% | 2 yr | $2,550 | $1,651 | 35.2% |
| 2 | Toyota Tundra | Truck | $52,000 | 23.9% | 4 yr | $2,958 | $1,708 | 42.3% |
| 3 | Toyota Camry | Sedan | $32,000 | 30.7% | 2 yr | $2,267 | $1,844 | 18.7% |
| 4 | Honda Civic | Sedan | $28,000 | 29.8% | New | $1,956 | $1,956 | 0% |
| 5 | Honda CR-V | SUV | $36,000 | 35.3% | 4 yr | $2,859 | $1,961 | 31.4% |
| 6 | Subaru Crosstrek | SUV | $30,500 | 29.2% | 3 yr | $2,165 | $1,977 | 8.7% |
| 7 | Toyota Tacoma | Truck | $40,000 | 21.3% | New | $2,077 | $2,077 | 0% |
| 8 | Tesla Model 3 | EV | $42,000 | 43% | 3 yr | $3,924 | $2,399 | 38.9% |
| 9 | Toyota RAV4 | SUV | $36,000 | 30.4% | New | $2,523 | $2,523 | 0% |
| 10 | Nissan Leaf | EV | $33,500 | 69% | 4 yr | $5,206 | $2,572 | 50.6% |
| 11 | Toyota Sienna | Hybrid | $46,600 | 25.8% | New | $2,837 | $2,837 | 0% |
| 12 | Jeep Wrangler | SUV | $50,000 | 40.6% | 4 yr | $4,601 | $2,971 | 35.4% |
| 13 | Chevrolet Corvette | Sports | $82,000 | 22% | 2 yr | $4,183 | $3,062 | 26.8% |
| 14 | Ram 1500 | Truck | $63,500 | 50.1% | 2 yr | $6,902 | $3,123 | 54.8% |
| 15 | Toyota 4Runner | SUV | $50,000 | 28.2% | New | $3,221 | $3,221 | 0% |
| 16 | Toyota Highlander | SUV | $47,300 | 36.3% | 1 yr | $3,815 | $3,429 | 10.1% |
| 17 | Jeep Grand Cherokee | SUV | $45,000 | 48.1% | 6 yr | $4,848 | $3,847 | 20.7% |
| 18 | Chevrolet Silverado 1500 | Truck | $57,900 | 44.8% | 1 yr | $5,745 | $4,168 | 27.4% |
| 19 | Tesla Model Y | EV | $51,400 | 51.4% | 1 yr | $5,933 | $4,355 | 26.6% |
| 20 | Ford F-150 | Truck | $53,000 | 35.5% | New | $4,378 | $4,378 | 0% |
| 21 | Audi A6 | Luxury | $66,000 | 63.5% | 5 yr | $9,094 | $4,579 | 49.6% |
| 22 | BMW 7 Series | Luxury | $100,000 | 61% | 6 yr | $12,861 | $5,538 | 56.9% |
| 23 | BMW X5 | Luxury | $74,000 | 55.4% | 4 yr | $9,109 | $5,671 | 37.7% |
| 24 | Maserati Ghibli | Luxury | $88,000 | 71.6% | 4 yr | $13,772 | $6,002 | 56.4% |
| 25 | BMW X7 | Luxury | $92,700 | 59% | 5 yr | $12,187 | $7,557 | 38% |
| 26 | Porsche 911 | Sports | $140,000 | 25% | New | $7,836 | $7,836 | 0% |
"$/yr" is the all‑in cost of owning for five years — depreciation plus typical maintenance — buying new vs. buying at the model's best age. "Best age to buy" is the age that minimizes that figure for each car (computed, not fixed), and the table is ranked by it. How we estimate this →
Frequently asked questions
How much does a car depreciate per year?
Not evenly — that's the part averages hide. Across the models we track, a car loses about 13.4% of its value in the first year alone and 28% by year three, but only reaches 40.9% by year five. So years four and five together cost less than the first year on its own, which is exactly why buying used and holding is cheaper than buying new and selling early.
Which cars depreciate the least?
Of the models we track, Toyota Tacoma holds value best — about 21.3% lost over 5 years versus a ~41.8% market average. The "holds value best" and "drops fastest" tables above rank every model by 5-year depreciation; the big table further down ranks the same cars by what they cost per year to own.
Which type of car depreciates fastest?
Body type matters more than most buyers expect. Luxury models lose the most of the types we track — about 62.1% over five years — while Sports models lose about 23.5%. Sample sizes per type are small, so treat these as direction rather than precision; the per-type table above shows how many models sit behind each figure.
Why is a 3-year-old car the sweet spot?
Depreciation is front-loaded: a typical car sheds ~30% in its first three years, then only a few percent a year. Buying after the cliff and holding through the flat years minimizes cost per year — usually 45–58% cheaper than buying new, depending on the model.