Can you completely avoid car depreciation?

No — almost every car loses value with age and use. But you can lose far less of it by choosing a model that holds value, buying it a few years old instead of new, and keeping mileage and condition in check. The goal is to minimize depreciation, not eliminate it.

Does buying a used car avoid depreciation?

Buying used lets the first owner absorb the steepest part of the curve, which is where the biggest dollar losses happen. You still face ongoing depreciation, but a two-to-four-year-old car has usually taken its hardest hit already, so you keep more of what you pay.

Which cars depreciate the least?

In our data, trucks, body-on-frame SUVs, and a handful of high-demand models hold value best, while luxury and some electric models depreciate fastest. The typical model loses about 32% of its value over five years; the strongest holders lose closer to 14%. You can compare any model's five-year figure in our resale rankings.

How to Avoid Car Depreciation

Depreciation is the gap between what a car costs new and what it is worth later. It is largely invisible — you only feel it when you sell or trade in — which is exactly why it is so easy to overpay for. The good news: the biggest levers are all choices you make before and at purchase. Across the 44 models we currently rank, the typical car loses about 32% of its value in five years — but the range is wide, from roughly 14% for the best holders to 52% for the fastest depreciators.

1. Start with a model that holds value

The choice of model matters more than anything you do afterward. Two cars bought for the same price can be worth thousands apart five years later. Before you fall for a specific car, check where the model sits on the resale value rankings — the Toyota Tacoma currently leads, retaining about 86% after five years. Compare within the segment you actually need using the by-segment leaderboards.

2. Buy a few years old, not new

A new car takes its steepest percentage loss in the first couple of years. Let someone else pay for that. A lightly used example — typically two to four years old — has already shed the fastest part of the curve while keeping most of its service life. Each model page shows its best year to buy, the year that balances a low price against remaining life.

3. Buy just past the depreciation cliff

Many models have a depreciation cliff — a model year where value drops unusually fast. Buying on the newer side of that cliff captures a large discount the previous owner absorbed, without the car being meaningfully older. Our year-by-year tables make these drops easy to spot.

4. Pick mainstream trims and powertrains

Expensive option packages rarely return their full cost at resale, and niche configurations can be harder to sell. Mainstream, in-demand trims with widely wanted features usually hold value best. Fuel type matters too: efficient, high-demand powertrains tend to resell more predictably than models sensitive to incentives or technology cycles.

5. Protect mileage and condition

Once you own the car, the two things most within your control are mileage and condition. Keeping annual mileage near average, staying on top of service records, and avoiding accidents and cosmetic damage all defend resale value. Documentation matters — a clean, well-recorded history is worth real money to the next buyer.

6. Know which cars to avoid

Some models lose value fast no matter what you do. If resale matters to you, it pays to know them going in — see the fastest-depreciating cars. A steep curve is a bargain when you buy used and keep the car, but a costly mistake when you buy new and sell early.