Which vehicle category depreciates the least?

Trucks and body-on-frame SUVs consistently retain the most value. They benefit from high demand, utility value, and strong brand loyalty. Models like the Toyota Tacoma and Jeep Wrangler lead all vehicles in value retention.

Why do luxury cars depreciate so fast?

Luxury brands update frequently with new technology, making older models feel dated. High maintenance costs after warranty expiration and a buyer base that prefers new models both drive faster depreciation.

Is buying a used luxury car a good deal?

It can be. A 3-year-old luxury sedan may cost 40–50% less than new while still being a relatively modern vehicle. However, factor in potentially higher maintenance and repair costs.

How is EV depreciation changing?

Early EVs depreciated extremely fast due to rapid tech improvements and range anxiety. As EVs mature, popular models are retaining value much better. Tesla Model 3 and Model Y now depreciate at rates similar to mainstream vehicles.

Does the specific model matter within a category?

Significantly. Within the truck category, a Toyota Tacoma might retain 70% of its value while a less popular truck retains only 50%. These category averages are starting points; specific model research is also important.

How does depreciation affect insurance costs?

As your car depreciates, its replacement value drops, which generally lowers comprehensive and collision insurance premiums. However, this also means your insurance payout is lower if the car is totaled.

Car Depreciation by Category Calculator

Compare depreciation curves across vehicle categories: trucks, luxury, economy, SUV, and EV. See which types hold value best.

Purchase Price

Best Retention

Truck / SUV: $28,799.50

57.6% after 5 years

Worst Retention

Luxury: $20,700.90

41.4% after 5 years

Difference

$8,098.60

Value gap between best and worst

Category	Year 1	Year 2	Year 3	Year 4	Year 5	Retained
Economy	$41,000.00	$35,260.00	$30,676.20	$27,608.58	$25,123.81	50.2%
Midsize Sedan	$39,000.00	$33,150.00	$28,509.00	$25,658.10	$23,348.87	46.7%
Truck / SUV	$42,500.00	$37,400.00	$33,660.00	$30,967.20	$28,799.50	57.6%
Luxury	$37,500.00	$30,750.00	$26,137.50	$23,001.00	$20,700.90	41.4%
Electric Vehicle	$36,500.00	$29,930.00	$25,739.80	$23,165.82	$21,312.55	42.6%

Planning notes, formulas, and examples

About the Car Depreciation by Category Calculator

Not all vehicles depreciate at the same rate. The type of vehicle you buy has an enormous impact on how quickly it loses value. Trucks and SUVs consistently hold value better than sedans, while luxury vehicles often experience the steepest declines.

This calculator lets you enter a purchase price and see how that same amount plays out across multiple vehicle categories simultaneously. Side-by-side comparison reveals just how much vehicle choice matters for long-term value retention.

Depreciation differences between categories can amount to tens of thousands of dollars over a vehicle's life. A $50,000 truck might be worth $30,000 after five years while a $50,000 luxury sedan could be worth only $20,000. This calculator makes those differences crystal clear.

When This Page Helps

If you're deciding between vehicle types, depreciation should be a major factor in your decision. This calculator shows you exactly how much more you'll lose in value by choosing one category over another, helping you make a decision that considers long-term financial impact.

How to Use the Inputs

Enter the purchase price to compare across all categories.
Review the depreciation table showing all vehicle types side by side.
Compare 5-year values to see which category retains the most value.
Use the retention percentages to factor depreciation into your buying decision.
Consider the total cost difference when choosing between vehicle types.

Formula used

Each category has its own depreciation curve:
Economy: 18%, 14%, 13%, 10%, 9% per year
Midsize: 22%, 15%, 14%, 10%, 9%
Truck/SUV: 15%, 12%, 10%, 8%, 7%
Luxury: 25%, 18%, 15%, 12%, 10%
EV: 27%, 18%, 14%, 10%, 8%

Example Calculation

Result: Range: $29,893 (Truck) to $18,792 (Luxury)

At $50,000, a Truck/SUV retains $29,893 (60%), Economy holds $26,181 (52%), Midsize keeps $23,161 (46%), an EV retains $22,277 (45%), and Luxury drops to $18,792 (38%). The difference between Truck and Luxury is $11,101.

Tips & Best Practices

If resale value matters to you, trucks and body-on-frame SUVs are the strongest category.
Luxury vehicles lose value fastest but can be great used buys for someone else.
EV depreciation has been improving as the technology matures and demand grows.
Within each category, brand reputation plays a huge role — Toyota trucks outperform others.
Consider buying used in high-depreciation categories to let someone else absorb the loss.
Factor depreciation into total cost of ownership, not just purchase price.

The Depreciation Spectrum

Vehicle depreciation ranges widely across categories. At one extreme, trucks and SUVs retain 55–65% of value after 5 years. At the other, luxury vehicles may retain only 35–45%. Understanding this spectrum helps you predict your car's future value and total cost of ownership.

Why Category Matters More Than You Think

Two vehicles with the same $40,000 price tag can cost very different amounts after depreciation. The truck retains $24,000 in value; the luxury sedan retains only $15,000. That $9,000 difference is a hidden cost that doesn't show up in monthly payments.

Making Smart Category Choices

If you plan to keep a car for 5+ years or trade it in regularly, choose a high-retention category. If you love luxury vehicles, consider buying 2–3 years used when the steepest depreciation has already occurred. EV buyers should research specific model retention rates, as they vary more than any other category.

Sources & Methodology

Last updated: February 8, 2026

Frequently Asked Questions

Trucks and body-on-frame SUVs consistently retain the most value. They benefit from high demand, utility value, and strong brand loyalty. Models like the Toyota Tacoma and Jeep Wrangler lead all vehicles in value retention.