Car Depreciation Rates by Brand 2026: Which Vehicles Hold Value Best?
Toyota, Honda, and Subaru lead in depreciation resistance, losing 35–40% over 5 years, while luxury brands like BMW and Mercedes-Benz lose 50–60% in the same period.
Why Depreciation Matters for Car Buyers
Depreciation is the single largest cost of car ownership, exceeding fuel, insurance, and maintenance combined for most vehicles. Understanding which brands and models hold their value best can save you thousands when it's time to sell or trade in. A car that depreciates 35% over 5 years costs $7,000 less in lost value than one that depreciates 55% on a $35,000 vehicle.
Best Depreciating Brands (5-Year Depreciation)
According to 2026 industry data from Kelley Blue Book and Edmunds, Toyota leads with a 37% average 5-year depreciation rate. Honda follows at 38%, Subaru at 39%, and Mazda at 41%. These brands consistently rank at the top due to strong reliability ratings, wide model lineup, and high demand in the used car market. Toyota's hybrid models like the Prius and Camry Hybrid are especially strong, with some years showing less than 30% depreciation.
Worst Depreciating Brands (5-Year Depreciation)
Luxury European brands tend to have the highest depreciation. BMW averages 52% 5-year depreciation, Mercedes-Benz at 54%, and Audi at 50%. New luxury models can lose 20–30% of their value in the first year alone. Among non-luxury brands, Chrysler and Dodge have higher-than-average depreciation at around 48%, due to lower consumer demand and reliability concerns.
How to Minimize Depreciation
You can minimize depreciation by choosing vehicles with proven resale track records, opting for popular trim levels and colors, maintaining the vehicle regularly with documented service records, and avoiding excessive modifications. Keeping mileage under 12,000 miles per year also helps preserve value. Certified pre-owned vehicles from franchised dealers typically retain value better than those sold by private sellers or independent lots.
Depreciation by Vehicle Type
Trucks and SUVs generally depreciate slower than sedans and coupes. Full-size trucks like the Ford F-150 and Chevrolet Silverado have some of the best resale values in any vehicle category. Electric vehicles have shown mixed results—Tesla models hold value relatively well, but some EV brands have experienced faster depreciation as battery technology rapidly evolves.
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