What according to you is the costliest part of owing a car? Is it fuel, taxes or maintenance? Surprisingly it is the depreciation value that really hits hard. A new car is a big investment but not always the wise one. As soon as a new car moves out of the dealer’s parking lot, its value instantly plummets. This gets more tedious and stressful with certain makes and models.
You will be surprised to find that your new car loses more than 15% of its retail value right within the first year. This can go up to 60% in the consecutive two years. There are variety of factors like the price, running cost and quality that decides the depreciation value.
However, a major concern is why anyone will stick to a vehicle that loses its value so quickly? It is because you are not aware of the models that can withstand the test of time better than others. With the cars mentioned below, you can actually get a better value for your money over the life of your vehicle. Indeed, the value of one of these cars increases after the first year of ownership.
Average Decrease in Price after 12 Months of Ownership: 9%
Honda generally holds a high value and is known for making safer, cheaper and reliable cars for the entire family. If you want all the benefits of Honda Pilot in a smaller package, then CR-V is best for you. Thanks to its good ride quality and proven reliability, Honda CR-V is highly regarded by car owners. We recommend buying new models as their deprecation value with 9% for the first year is the lowest in the market.
Toyota FJ Cruiser
Average Decrease in Price after 12 Months of Ownership: 8.7%
If you have a Toyota FJ Cruiser, you would be amazed to find that this retro-themed FJ is worth more than your imagination. With its rough and tumbled truck-based SUV, Toyota reignited the spark of the FJ40 series of Land Rover. While this old-school body-on-frame SUV has been known for its superior off road capabilities, you will also value it for having lowest depreciation rates.
Average Decrease in Price after 12 Months of Ownership: 8%
While we are waiting for the 2017 Mercedes Benz G-Class, we have to admit that the makes in the market are as robust as the upcoming one. Built on an antiquated system, G-Class is a luxury midsize, cross-country vehicle. Since the production started in 1979, the company made no big changes. It still has the same traditional truck-type body-on-frame construction with outstanding off-road ability. Perhaps, its forever look and strong built makes G-Class so demanding that it could rarely depreciate in value.
Average Decrease in Price after 12 Months of Ownership: 7.9%
The company has the longest history in the US amongst import automakers of selling compact and midsize pickup trucks. The current midsize truck of Nissan is the Frontier. With choices between four-cylinder or V-6 power and rear or four-wheel drive, it is a popular choice in light and medium workloads. If you own a Frontier or planning to buy one, stay relaxed as its value decreases at a consistent rate of 7.9% after first year.
Average Decrease in Price after 12 Months of Ownership: 7.1%
Jeeps are among the toughest vehicles that can take on the most intense off-road trails. They have the history of being the most authentic SUV and therefore command the highest resale value. If you have a chance, we recommend buying a new Wrangler.
Average Decrease in Price after 12 Months of Ownership: 6.9%
2015 Tacoma has many upgrades which simply made this mid-sized truck more reliable and robust. Though lightweight, it allows the driver to haul like a full-sized truck. While the add-ons have certainly made Toyota Tacoma a consumer’s choice to drive the wheels off of without worrying much about gas mileage and repairs, it is also the company’s reputation that adds more value to this extremely durable and long lasting mid-sized truck.
Average Decrease in Price after 12 Months of Ownership: 3%
One of the best car brands in the US, Subaru is known for making most reliable cars. The Impreza is certainly the best impression of the brand to show that a multi-purpose vehicle can be luxurious, cost effective, and low in maintenance and holds second lowest depreciation value in the country.
Land Rover Range Rover
Average Price Increase after 12 Months of Ownership: 3.3%
With a vintage appeal and a built that lasts forever, Land Rover is the only car on our list that’s value increases over the first 12 months of ownership. Land Rovers were first made in 1947 for being used as light farm machinery. Since then their evolution as a G-Class luxury SUV is remarkably faster. They are designed not only to let you own a car that is timeless but is also smoothest in driving. These beauties have a historic appeal and even today, the waiting list fills quickly. Due to this many owners have reportedly sold their Range Rovers for $5,000 above the retail price.