Up to 50% loss in 3 years
Vehicle depreciation patterns by type
Five-year depreciation by vehicle type: luxury sedans 65-75%, mainstream sedans 50-60%, SUVs 45-55%, pickup trucks 35-45%, EVs 50-65% (rapidly improving). Specific models like the Toyota Tacoma and Porsche 911 hold value far above category averages. Depreciation is the single largest cost of new-car ownership — buying 2-3 year old used vehicles avoids most of it.
Level
Try calculatorKey takeaways
04 · ideas- New vehicles typically lose 15-25% of value in the first year
- Luxury vehicles often depreciate faster in percentage terms
- Trucks and off-road SUVs have historically held value well
- Discontinued models tend to depreciate faster
Depreciation is the difference between what you paid for a vehicle and what it is worth when you sell or trade it. For most consumers, it is one of the largest single costs of vehicle ownership.
General pattern by type (approximate 3-year value retention):
| Vehicle type | Typical 3-year retention |
|---|---|
| Full-size pickup trucks | 60-70% |
| Off-road SUVs | 65-75% |
| Mainstream crossovers | 50-60% |
| Mainstream sedans | 45-55% |
| Luxury sedans | 35-50% |
| Electric vehicles | 40-60% (high variance) |
These are general ranges; individual models vary significantly within each category.