Photo of 2016 Toyota Tacoma TRD via Wikipedia user Kevauto. Creative Commons license

published on November 13, 2020 - 1:17 PM
Written by The Business Journal Staff

A new study has been published online showing which cars have the highest and lowest rates of depreciation for Central Valley areas.

On Monday, the online automotive research firm released its report on automotive depreciation. The average new car in the Fresno-Visalia area loses 49.5% of its value after five years. According to the study, the car with the highest rate of depreciation is the BMW 5 Series, which loses 70.5% of its value over five years. Following BMW are the Infiniti QX60 (65.1%), the BMW 3 Series (62.4%), the Chevrolet Camaro (61.9%) and the Buick Enclave (61.7%). For the BMW 5 Series, that can be a loss of $47,038 in some markets, according to the report.

On the opposite end, the study found that at 21.5%, the Toyota Tacoma has the lowest five-year depreciation rate. That represents a potential loss of $10,496, depending on sticker price. The Jeep Wrangler Unlimited (27.6%), Toyota Tundra (28.1%), Toyota 4Runner (31.6%) and the Honda Civic (34.1%) round out the list.

“While the average new vehicle loses almost half of its value over five years, there are vehicles that retain more of their value and depreciate less than average,” said Karl Brauer, executive analyst for iSeeCars. “For consumers who purchase new vehicles and plan to sell them in the first five years of ownership, choosing a model that retains the most value is a smart economic decision, especially when you consider depreciation is the single largest ‘cost’ to owning a vehicle.”

iSeeCars analyzed more than 8.2 million car sales to identify the models with the highest and lowest loss in value.

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