The second you drive a new vehicle off the dealership’s lot, it starts depreciating in value. This is critical to understand if you’re financing your vehicle, plan to one day trade it in for another, or get into an accident and need to restore your vehicle to its original condition.
According to U.S. auto comparison site Edmunds.com, new cars lose 23.5% of their value after a year, and about 60% of their value in the first five years. The percentage of depreciation starts to taper off after that.
This is why some auto insurance companies offer a waiver depreciation on new vehicles. This endorsement ensures that if you were to total your vehicle, you’d receive the manufacturer’s suggested retail price of the vehicle (or, in other words, what you bought it for) from your insurance company, and not the value it had depreciated to in the time since you’ve left the lot.
But not every vehicle holds value in the same way. Some depreciate faster than others.
For the twelfth year in a row, the Canadian Black Book (CBB) released its 2019 Best Retained Value Awards last week, with a list of the vehicles that are best at retaining their value.
“We hope the manufacturers are proud of these awards, but perhaps even more so, we want consumers to recognize these awards and use them as reference point to help direct them into smart buying decisions,” said Brian Murphy, vice president of research and analytics at Canadian Black Book in the release.
Three new categories (Sub-Compact Luxury Crossover, Sub-Compact Crossover, and Zero Emission) were added this year. The CBB’s complete list ranks vehicles from first to third place. We’ve included only the first-place winners in our condensed table below:
|Sub-compact Car||Toyota Yaris|
|Compact Car||Toyota Prius v|
|Mid-size Car||Toyota Camry|
|Full-size Car||Toyota Avalon|
|Entry Luxury Car||Lexus CT200h|
|Luxury Car||Audi A7|
|Premium Luxury Car||Porsche Panamera|
|Premium Sports Car||Chevrolet Corvette|
|Sports Car||Ford Mustang|
|Small Pickup||Toyota Tacoma|
|Full-size Pickup||Toyota Tundra|
|Full-size Van||Mercedes-Benz Sprinter 2500|
|Compact Commercial Van||Chevrolet City Express|
|Compact Crossover/SUV||Jeep Wrangler|
|Mid-size Crossover/SUV||Toyota 4Runner|
|Full-size Crossover/SUV||Chevrolet Tahoe|
|Compact Luxury Crossover/SUV||Porsche Macan|
|Mid-size Luxury Crossover/SUV||Lexus GX460|
|Full-size Luxury Crossover/SUV||Mercedes-Benz G-Class|
|NEW: Sub-Compact Luxury Crossover||Mercedes-Benz GLA-Class|
|NEW: Sub-Compact Crossover||Jeep Renegade|
|NEW: Zero Emission||BMW i3|
For its Overall Brand awards, “which measure retained value across all models a brand offers” CBB named Toyota the winner in both the “Car” and “Truck/Crossover/SUV” class, and Porsche the winner in the Luxury category.