In order to calculate five-year depreciation rates, iSeeCars examined more than 1.1 million vehicles sold between November 2022 and October 2023. This data’s historical comparison revealed that depreciation was lower across major segments than in 2019.
Karl Brauer, executive analyst of iSeeCars, stated, “The good news for car owners is that all used cars hold their value better than they did five years ago.” However, not all used vehicles are worth the same; “the best segments are trucks and hybrids, while electric cars perform the worst.”
Vehicles that depreciated over five years
Currently, all vehicles have an average five-year depreciation rate of 38.8%, but EVs have a depreciation of 49.1%, which is more than 10% points worse. Regarding value loss, SUVs also lose more than the typical car at 41.2%.
The top-ranked Porsche 911 coupe only lost 9.3% of its value after five years, indicating robust demand for this sports car in the used market. Relatively high values for three other Porsches, six Toyotas, four Subarus, and three Chervolets, reflect ongoing consumer demand for sports cars, small SUVs, and fuel-efficient economy cars. Over the past few years, the rise in used car pricing drove many buyers toward these smaller, lower-priced models.
On the other hand, the most recent data revealed luxury cars lose value more quickly than mainstream models—on average, they lose 48.1 % of their worth after five years. In contrast, the industry average for non-luxury cars is 36.8%.
Since electric cars are still a relatively new product on the market, it is difficult to track their depreciation over a five-year period. However, compared to the 38.8% average for all used cars, EVs depreciate at a rate of 49.1%, the highest among the segments analyzed by iSeeCars.
In the last four years, hybrid residual values have improved from a depreciation rate of 56.7% in 2019 to 37.4%, a gain of over 20 percentage points. At the same time, the demand for hybrid vehicles has surged due to rising fuel prices and growing familiarity with the technology.
Compared to other vehicle types, trucks have the highest collective valuation. After five years, the typical vehicle only loses 34.8% of its value, demonstrating its long-term endurance and the steady demand for these models in the market.