The threat of depreciation has always been one of the great killers of the buzz around new vehicles for practical minded buyers and the improving quality, reliability and durability really has not changed the equation much.
Vehicle depreciation also is critical in the way banks and automotive finance companies calculate lease payments. Faster depreciations can lead to higher lease payments.
Currently the average new car loses 49.6 % of its value after five years of ownership, according to the latest study by the website iSeeCars.
On balance, the new cars that retain the most value after five years are SUVs, trucks, and sports cars; while electric vehicles and luxury sedans depreciate the most, the survey said.
Nonetheless, some vehicles and brands hang on to their value better than others, iSeeCars reports in its new study. They depreciate at a slower rate, on average, than other vehicles. Other vehicles, however, tend to depreciate more quickly than other models in the survey.
One of the findings from the iSeeCars survey is that the SUVs with the highest depreciation are exclusively luxury vehicles with the exception of the GMC Yukon XL.
The study also show that some high hand luxury models were got badly dented by depreciation after five years.
For example, the Maserati Quattroporte lost 72.2% of its value during the five-year horizon of the study. The BMW 7 Series also lost 71.3% of its value after five years while the Nissan Leaf lost 71% of its value. The BMW i3, another electric vehicle, lost 70.9% of its value, while the BMW 5 Series lost 69.2 % of its value over five years by iSeeCars estimate.
The Acura RLX, For Fusion Energy, BMW 6 series, Jaguar XJL and Chevrolet Volt rounded out the list of cars from iSeeCars that lost more than 68% of their value.
On the other side of the ledger the Jeep Wrangler lost only 31.5% of their value after five years and the Toyota Tacoma lost 32%. The Toyota Tundra lost 35.9%, the Toyota 4Runner lost 36.5% and the Porsche 911 lost 37.2%.
Other vehicles that held their value after five years included the Honda Ridgeline, the Nissan GT-R, the Nissan Frontier, Nissan Frontier and Subaru Impreza WRX all of which lost 40% or less of their value, according to the study.