Which car category depreciates the least?

Trucks and body-on-frame SUVs consistently retain the most value. The Toyota Tacoma, Jeep Wrangler, and Toyota 4Runner are perennial leaders, often retaining 60–70% of their value after 5 years.

Do electric vehicles depreciate faster?

Early EVs depreciated rapidly (30%+ in year 1) due to battery concerns and rapid technology changes. However, popular models like Tesla Model 3/Y have improved significantly, and EV depreciation is trending closer to conventional vehicles.

Why do luxury cars depreciate so fast?

Luxury brands release frequent updates with new technology, making older models feel dated quickly. Additionally, high maintenance costs and expiring warranties reduce used-market appeal. Some luxury vehicles lose 60%+ of value in 5 years.

How accurate are category-average depreciation rates?

They provide a reasonable baseline but individual models vary significantly. A Toyota Camry will depreciate less than a Nissan Altima despite both being midsize sedans. Brand reputation, reliability, and demand drive individual differences.

Does color affect 5-year depreciation?

Slightly. Neutral colors (white, black, silver, gray) are easier to resell and may retain 1–3% more value. Unusual colors like orange or purple can narrow the buyer pool and lead to slightly faster depreciation.

Should I factor depreciation into my buying decision?

Absolutely. Depreciation is often the largest cost of ownership, exceeding fuel, insurance, and maintenance combined. A car that costs $5,000 less to buy but depreciates $8,000 more is actually the more expensive choice.

5-Year Car Depreciation Calculator

Estimate your car's value after 5 years by vehicle category. See how trucks, luxury, economy, and EV models depreciate differently.

Purchase Price

Vehicle Category

Value After 5 Years

$25,919.55

Total Depreciation

$19,080.45

Sum of all values

Value Retention

57.6%

Truck / SUV

Year	Rate	Year Loss	Estimated Value
0 (New)	—	—	$45,000.00
1	15%	$6,750.00	$38,250.00
2	12%	$4,590.00	$33,660.00
3	10%	$3,366.00	$30,294.00
4	8%	$2,423.52	$27,870.48
5	7%	$1,950.93	$25,919.55

Planning notes, formulas, and examples

About the 5-Year Car Depreciation Calculator

Different vehicle categories depreciate at vastly different rates over five years. A pickup truck might retain 60–70% of its value while a luxury sedan could lose 55–65%. This 5-year car depreciation calculator lets you select a vehicle category and see the projected value at each year through year five.

Understanding category-specific depreciation is essential when deciding between vehicle types. A $50,000 truck that retains $35,000 after five years effectively costs $15,000 in depreciation, while a $50,000 luxury sedan retaining only $20,000 costs $30,000 — double the depreciation expense.

This calculator uses industry-average depreciation curves for each vehicle type. Real-world values depend on brand, condition, mileage, and market demand, but these averages provide a reliable baseline for planning.

When This Page Helps

Vehicle category is one of the biggest factors in depreciation. Before choosing between a sedan, SUV, truck, or EV, you should know how each type holds its value. It gives category-specific projections so you can factor depreciation into your buying decision.

How to Use the Inputs

Enter the purchase price (MSRP or actual sale price).
Select the vehicle category that best matches your car.
Review the estimated value at the end of each year through year 5.
Compare categories to see which type retains the most value.
Use the 5-year residual value for trade-in or resale planning.

Formula used

Value at Year N = Previous Year Value × (1 − Category Rate)

Category rates vary by type:
Economy: 18%, 14%, 13%, 10%, 9%
Midsize Sedan: 22%, 15%, 14%, 10%, 9%
Truck/SUV: 15%, 12%, 10%, 8%, 7%
Luxury: 25%, 18%, 15%, 12%, 10%
Electric Vehicle: 27%, 18%, 14%, 10%, 8%

Example Calculation

Result: $27,923 after 5 years

A $45,000 truck depreciates to $38,250 (year 1), $33,660 (year 2), $30,294 (year 3), $27,870 (year 4), and $25,919 (year 5) — retaining about 58% of its original value. Much better than a luxury vehicle which would retain only about 39%.

Tips & Best Practices

Trucks and body-on-frame SUVs consistently hold value the best over 5 years.
Luxury vehicles depreciate the fastest due to new-model cycles and technology updates.
Early EV models depreciated rapidly, but popular models like Tesla are improving retention.
Popular, high-demand models within any category depreciate less than niche vehicles.
Consider depreciation as a major ownership cost when comparing vehicles across categories.
Buying a 1–2 year old truck can get you 85%+ of a new truck for 70% of the price.

Depreciation by Vehicle Category

Vehicle type is one of the strongest predictors of depreciation. Trucks and SUVs benefit from consistent demand, durability reputation, and utility value. Economy cars depreciate moderately due to their practical appeal. Luxury vehicles face rapid depreciation from technology obsolescence and high ownership costs.

The EV Depreciation Puzzle

Electric vehicles initially suffered extreme depreciation due to range anxiety, battery degradation concerns, and rapidly improving technology. However, as EVs become mainstream and battery longevity improves, depreciation rates are normalizing. Tesla models have led this trend with strong resale values.

Using 5-Year Depreciation in Your Decision

When comparing a $45,000 truck to a $45,000 luxury sedan, the truck's superior value retention effectively gives you $10,000+ more in resale equity at year 5. Factor this into your total cost of ownership to make a truly informed decision.

Sources & Methodology

Last updated: February 8, 2026

Frequently Asked Questions

Trucks and body-on-frame SUVs consistently retain the most value. The Toyota Tacoma, Jeep Wrangler, and Toyota 4Runner are perennial leaders, often retaining 60–70% of their value after 5 years.