The SUV with the worst resale value loses over 60% of its value in five years. This happens because of high initial prices, low demand, and poor brand reputation.
Depreciation is the rate at which a vehicle loses value over time. SUVs typically lose value faster than sedans due to higher maintenance costs and lower fuel efficiency. The first year usually sees the steepest drop, often 20% or more.
Most SUVs with poor resale value fall into three categories:
Resale value affects both buyers and sellers. Sellers get less money when trading in or selling privately. Buyers pay more upfront for a vehicle that won't retain value. According to Kelley Blue Book, some SUVs lose over $20,000 in the first three years.
Another myth is that electric SUVs always depreciate quickly. While some do, models like the Tesla Model Y retain value better than gas-powered counterparts in the same class.
To minimize depreciation, research resale values before buying. Opt for SUVs known for reliability, such as the Honda CR-V or Subaru Forester. These models typically lose less value over time.
When I bought my last SUV, I checked resale value reports from Consumer Reports and Kelley Blue Book. I chose a model ranked highly for retention, saving thousands in the long run.