You don’t need me to tell you how bonkers the used car market is right now. However, for those who can’t sit on the sidelines for the next year or more, there are some models that could present better values due to sharper depreciation. iSeeCars.com’s most recent study highlights the cars that depreciate the most and the least.
There have been some interesting shifts in the pre-owned market, mostly due to inventory shortages in the new market. iSeeCars.com’s most recent survey highlighted which cars are holding their value and which ones have more dramatic depreciation.
The study used the following methodology:
“iSeeCars.com analyzed more than 800,000 used cars from model year 2016 sold between January and August 2021. Heavy-duty trucks and vans, models no longer in production as of the 2021 model year, and low-volume models were removed from further analysis. MSRPs from 2016 were inflation-adjusted to 2021 dollars, based on data from the US Bureau of Labor Statistics. The difference in average asking price for each vehicle between its MSRP and its used car pricing was mathematically modeled to obtain the vehicle’s 5-year depreciation.”
Just like previous lists, you will find the Wrangler, Tacoma, Tundra and 4Runner in the top ten. Though, the rest of the list is surprisingly occupied by sports cars with the 911 taking the number three spot and American muscle cars completing the list.
So right now is not the best time to buy a used Jeep, off-road Toyota, or two-door coupe. However, there may be some opportunities in less popular segments like EVs and luxury sedans.
Given the rapidly changing technology and improvements in battery range, early EVs such as the Leaf and i3 take a big drop — though these used EVs could provide a more affordable option for folks that just need a gas-free commuter car for short distances.
In regards to luxury four-doors, while the study focuses on five-year-old cars, most consumers tend to be a bit hesitant to buy a European model without a warranty. However, I have found that even 1- to 3-year-old certified pre-owned models can still provide enough savings to make a used purchase worthwhile.