Everyone has heard the saying “a new loses value the second you drive if off the lot.” This is true of every single car, with the exception of some very limited, very exclusive million dollar supercars with badges like Bugatti and Ferrari.
But there’s more to this saying than most buyers know. Many simply assume that new cars all lose the same percentage of value over time, but that couldn’t be further from the truth. In fact, depreciation can vary greatly from brand to brand, even within the same vehicle segment.
For instance, a Fiat 500L loses more value in one year than the average Toyota Tacoma or Toyota 4Runner do in three years. In fact, the Tacoma only depreciates 38.9% in the first five years, which is clearly why it’s the #1 in residual value according to Kelley Blue Book.
There’s no beating time when it comes to car depreciation, but if residual value is a big concern you should research the top vehicles in the segment you’re purchasing from and pick your favorite!
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