Prices are still high for both new and used cars, study shows

  • Prices for new and used cars, trucks and SUVs remain at record highs.
  • Five models actually increased in value after three years: the Porsche 911 and 718 CaymanToyota RAV4 Hybrid and Jeep Wrangler and Wrangler Unlimited.
  • The biggest depreciation came in luxury cars after five years, with all of the top ten vehicles depreciating by more than 50% from their original MSRP.

    Prices remain at record highs for new, used and off-lease cars, according to a recent study by price tracking engine iSeeCars.com.

    “Pandemic-related disruptions to automakers’ supply chains and their impact on new and used vehicle pricing have also dramatically impacted retained-value prices,” said iSeeCars.com Executive Analyst Karl Brauer. “An analysis of three- and five-year vehicle depreciation reveals that cars retain a higher value than they have previously, and that a small number of cars have even increased in value.”

    iSeeCars looks at millions of new and used car purchase and lease transactions to get its data. For this latest study, the company analyzed over three million three-year-old and five-year-old used cars sold in 2022 and found that the average five-year-old car lost only 33.3% of its value from MSRP. Compared to 2021, it represents a 17.0% reduction in depreciation, meaning vehicles held their value better and longer.

    Jeep Wrangler downsized at least in five years.

    FCA US LLC

    The king of retained value is the humble and spunky Jeep Wrangler, which lost just 7.3% of its value after five years, losing only $2361 off its sticker price, followed by the Wrangler Unlimited which lost 8.7%. The Porsche 911 came in third and had 14.6% of value after five years.

    The worst vehicle in terms of five-year depreciation was the BMW 7 Series, which lost 56.9% of its sticker price over five years, or a whopping $61,923. It was followed by the Maserati Ghibli at 56.3% and $51,168 and the Jaguar XF at 54% and $36,081 after five years.

    2020 bmw 7-series sports revised styling

    The old BMW 7 Series took the biggest hit after five years.

    BMW

    In fact, high-end luxury cars packed the top 10 depreciators, with the Infiniti QX80, Cadillac Escalade ESV, Mercedes S-Class, Lincoln Navigator, Audi A6, Volvo S90 and Ford Expedition rounding out the 10 vehicles with the highest five-year depreciation according to the study.

    So if you want to save big on a luxury car, buy used.

    If you look at vehicles that dropped the least after just three year, the Porsche 911 wins. Indeed went up in value in three years, increasing in value by 5.7%, or $11,373. It was followed by the Toyota RAV4 Hybrid, up 2.5% or $883; Jeep Wrangler Unlimited, up 2.0% and $880; Porsche 718 Cayman, up 1.8% and $1,342, and Jeep Wrangler, up 0.3% and $90.

    The result? Buy that Porsche! And that Wrangler you always wanted. Throw this statistic at the significant other – your argument cannot be refuted. But click on iSeeCars.com and throw even more stats out there. The time to buy Porsches and Jeeps is now.

    Used three-year-old vehicles worth more than their new MSRP

    used car valuation

    iSeeCar’s study

    “Demand for both new and used cars remains strong, keeping their prices high and depreciation low,” says Brauer. “While the shiny new Chevrolet Corvette, GMC Yukon, Land Rover Range Rover Velar or Lexus IS may look great on the showroom floor, consumers looking to buy a car should consider how long they plan to own it and how much depreciation they want to experience when it’s time to sell or trade in your vehicle. Models with the lowest depreciation tend to cost more up front, but the higher purchase price can be more than offset by reduced depreciation over time.”

    But remember that all this is based on values ​​from the last three and five years. What will happen in the next three and five years? If you know, buy a ticket.

    Top 10 vehicles with the lowest five-year depreciation

    used car value depreciation

    iSeeCar’s study

    Which pricing environment do you find as you buy new or used cars? Are you concerned about depreciation? Feel free to comment below.

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