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Car Depreciation by Brand 2026: Which Names Keep Their Value

By Sarah MitchellJuly 20268 min read

Toyota, Honda, and Subaru lose 35–40% over five years while BMW and Mercedes shed 50–60% — and depreciation is usually the biggest ownership cost of all.

Why depreciation is the real boss

Depreciation is the largest single cost of ownership, bigger than fuel, insurance, and maintenance combined. A car that loses 35% over five years costs $7,000 less in lost value than one that drops 55% on the same $35,000 sticker. When you shop resale, you are really shopping your future loss.

The value retainers

Kelley Blue Book and Edmunds 2026 data put Toyota at about 37% five-year depreciation, Honda at 38%, Subaru at 39%, and Mazda at 41%. Reliability, broad demand, and strong used markets keep them high. Toyota hybrids — Prius, Camry Hybrid — can beat 30% thanks to fuel savings buyers will pay for used.

The value losers

Brand5-yr depreciationWhy
BMW~52%High repair cost, tech churn
Mercedes-Benz~54%Steep new discounts, costly upkeep
Audi~50%Lease-heavy, soft used demand
Chrysler/Dodge~48%Weak demand, reliability marks

Body style changes the curve

Pro tip

Trucks and SUVs — F-150, Silverado, 4Runner — hold value best of any category because work buyers keep demand high. EVs are mixed: Tesla resists depreciation better than most, but several newer EV brands have dropped fast as tech and incentives shifted.

How to protect your own resale

Buy a proven model in a popular trim and a neutral color, keep mileage under 12,000 a year, and keep every service record. A documented maintenance history and unmodified body earn more at trade-in than a heavily personalized car nobody else wants.

Frequently asked questions

What is the average car depreciation rate per year?+
About 15–20% the first year, 10–15% the second, then 8–10% annually. Over five years most vehicles lose 40–50% of their original value.
Which car brand has the best resale value?+
Toyota leads mainstream brands at ~37% five-year depreciation, with Honda and Subaru close behind and Porsche strongest among pricier nameplates.
Do luxury cars depreciate faster?+
Yes, typically 10–20 points more than mainstream over five years, driven by high purchase prices, steep new-car discounts, and expensive repairs.
What is the most depreciating car?+
Among mainstream, Chrysler and Dodge models fall fastest; among luxury, BMW and Mercedes show above-average depreciation. Heavy discounts on new units pull used values down.
How can I check my car’s depreciation?+
Compare your purchase price against a current Kelley Blue Book, Edmunds, or NADA value, or use the <a href="/calculators/used-car-value/">used car value calculator</a> on this site.
Sarah Mitchell

Sarah Mitchell is a certified automotive finance specialist with over 12 years of experience helping consumers navigate auto loans, leasing, and vehicle purchasing decisions. She writes for leading automotive finance publications and is recognized as an expert in affordable vehicle financing strategies.

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