Which car depreciates the slowest?

[George The Curious]

So I'm looking to buy a 2 - 3 year old used car, and plan to keep it for 3 - 4 years with minimal maintenance possible, and best possible resale value.
I've been browsing autotrader.ca to see the price differences of 2013 and 2008 models of various cars. I found BMW X6 is surprisingly good in keeping resale value. You can get 2013 model for $45k on average, and after 4 - 5 years, it will still be worth $30k, only $15k depreciation over 5 years? That's unreal.
I checked other similar makes, Acura MDX, Lexus RX all depreciates much more.

What's your favorite best resale value car?

 

[nottyboi]

So I'm looking to buy a 2 - 3 year old used car, and plan to keep it for 3 - 4 years with minimal maintenance possible, and best possible resale value.
I've been browsing autotrader.ca to see the price differences of 2013 and 2008 models of various cars. I found BMW X6 is surprisingly good in keeping resale value. You can get 2013 model for $45k on average, and after 4 - 5 years, it will still be worth $30k, only $15k depreciation over 5 years? That's unreal.
I checked other similar makes, Acura MDX, Lexus RX all depreciates much more.

What's your favorite best resale value car?

I doubt a 7-8 year old X6 will be worth 30K. Especially when the new X6 is out.

 

[trouble321]

If you're planning to keep it for just 3 years - lease. Longer than 5 years generally favours buying. Lots of searchable data.

 

[George The Curious]

I doubt a 7-8 year old X6 will be worth 30K. Especially when the new X6 is out.

check autotrader.ca

 

[nottyboi]

check autotrader.ca

Like I said it will change when the model gets redesigned. When that happens the previous model takes a hit. Especially when it is a big change.

 

[bishop]

depreciation is inversely proportional to the top speed of the car, except for beige corollas, they defy this law.

 

[LickingGravity]

If look at residual value on the 3 year lease ( what manufacturer would be sell/willing to sell you car at the of your lease) Mercedes is generally the highest at 50% to 55%, Audi middle to 40's% and so on.

 

[George The Curious]

If look at residual value on the 3 year lease ( what manufacturer would be sell/willing to sell you car at the of your lease) Mercedes is generally the highest at 50% to 55%, Audi middle to 40's% and so on.

I actually prefer Volvo (XC60 or XC90) better, but they depreciate faster than Mercedes

 

[Nickelodeon]

Depreciation is an indication of what the market is willing to pay for the vehicle after usage. If you lease, you can tell exactly how much it depreciates (or more specifically how much you're paying for the duration of the 3-4 year lease). I suspect on the X6 it's because the first guy who leased took the big hit. But it varies by car, reliability, market demand. Over the long haul a Toyota will keep its value because proven reliability results in long term market demand.

If you want luxury, I would suggest that you look at BMW's, Audi's, maybe MB's and pick up a 3 year old car with a 3 year certified series warranty. You won't get the fully depreciated value but at least you'll know how much that the manufacturer has made on the car, and where their floor is for pricing. A 3 year old MB E series sedan has less market appeal than MB M SUV; even they were equivalently priced new...I think you'll find them thousands of dollars apart after 3 years because of market demand. The E series sedan is a great car, but you and the rest of market may be looking at SUV's and the market for these vehicles reflect that price. After 6 years, they will not be selling for $30K...as noted above, check autotrader.ca. It's a great website for true market value.

 

[GameBoy27]

So I'm looking to buy a 2 - 3 year old used car, and plan to keep it for 3 - 4 years with minimal maintenance possible, and best possible resale value.
I've been browsing autotrader.ca to see the price differences of 2013 and 2008 models of various cars. I found BMW X6 is surprisingly good in keeping resale value. You can get 2013 model for $45k on average, and after 4 - 5 years, it will still be worth $30k, only $15k depreciation over 5 years? That's unreal.
I checked other similar makes, Acura MDX, Lexus RX all depreciates much more.

What's your favorite best resale value car?

In my experience, if you're concerned about minimal maintenance (cost) then you'll want to stay away from BMW. Japanese would make more sense.

 

[franci]

In my experience, if you're concerned about minimal maintenance (cost) then you'll want to stay away from BMW. Japanese would make more sense.

Unless you lease a new BMW. All maintenance is covered for 4 years and 80,000 kms. I'm sure its part of the cost but at least you only have to worry about gas and insurance.

 

[exnocomment]

The car that depreciates the least is a used one..

Drive a new car off the lot and you're down 10%!

 

[whitewaterguy]

Best resale value is in Range Rover, anything from Subaru, and Jeep Wrangler

 

[TheKing]

You guys are talking about two different depreciation periods.. big difference.

#1: Year 0-3 (new car). These are new cars that depreciate very very quickly as soon as driven off the lot, and nobody wants to pay much 3 years later. Think many GM cars, Dodge Caravan, etc. You can buy a 3 year old one for less than half the price of a new one.

#2: Year 3-6 (slightly used car). These are cars that continue to hold their value. Keep in mind that they may have been expensive to buy 3 years old (didn't depreciate much from new) but they will hold their value for a few years quite well. Think Porsche 911, Audi R8, etc.

You are really not looking for #1 above, because that means the car kept most of it's value from the time it was new.. and now that you are buying in year 3, you are paying MORE than for a car that dropped quickly in value.

A 3 yr old X6 may look like a good value, but you're overpaying for it up front. Sure you'll get a good price at year 6, but consider looking at something that dropped in price like a rock in the first 3 years (BMW 7 series, Cadillacs, etc). Those will be purchased for a great price up front, and if you maintain them you can still get a good resale price at year 6 (or later).

I'm still amazed that there are almost no Porsche 911's in Autotrader (even looking at 5-10-15-almost 20 years old!) that are much below $25-30k at any given time. For a car that recently didn't cost over $100k base price. 30% of the price of a new one for a 15-20 year old car? Amazing. Convinced that you can probably buy a new 911, drive it for TWENTY years and sell for $20k meaning it only cost you $4000/yr.

 

[rhuarc29]

I don't even care. I've only had three vehicles in my life...I drive them until something important goes, then buy something else. I don't understand people who buy a new vehicle every couple years. They're just throwing money away. The depreciation is brutal in the first couple years. Heck, as soon as you drive the car off the lot you've lost thousands!

 

[james t kirk]

Any classic car will not depreciate. In fact, it will A-preciate.

A Jag E type for example. The pinnacle of automotive style. You won't lose a dime on it as long as you maintain it. Ditto any of the classic Detroit iron. (Corvette - C4 and older, Camaro, Mustang, Charger, Challenger, etc etc.)

Probably not the kind of cars you want to drive in the winter I admit.

 

[fuji]

For new cars, I found that another factor was where in the country you shop. If you buy a car that is popular in the area you live in, there will be lots of dealers and you will get the car for significantly below invoice because of the competition and because the dealer is able to make money on volume.

If you buy a car that isnt popular where you live you will likely pay above invoice because there will be few dealers and they need to make money on every sale.

This has a substantial impact on first year depreciation, as in, how much you lose by driving the car off the lot.

After that depreciation is dominated by reliability. So the lowest depreciation will be the car with the highest reliability and the largest number of dealers in your area.

In Toronto that is probably Honda, west coast it is likely Subaru. Prairies my money would be on a Toyota pickup truck.

 

[Harley]

Subaru Outback with 6 cyl engine....... if you can find one .....no new ones in stock right now.

 

[Ceiling Cat]

Cars that are in high demand and have a good history of reliability will depreciate the least. Honda, Toyota, and Subaru are good bets.

 

[GPIDEAL]

Depreciation is an indication of what the market is willing to pay for the vehicle after usage. If you lease, you can tell exactly how much it depreciates (or more specifically how much you're paying for the duration of the 3-4 year lease). I suspect on the X6 it's because the first guy who leased took the big hit. But it varies by car, reliability, market demand. Over the long haul a Toyota will keep its value because proven reliability results in long term market demand.

If you want luxury, I would suggest that you look at BMW's, Audi's, maybe MB's and pick up a 3 year old car with a 3 year certified series warranty. You won't get the fully depreciated value but at least you'll know how much that the manufacturer has made on the car, and where their floor is for pricing. A 3 year old MB E series sedan has less market appeal than MB M SUV; even they were equivalently priced new...I think you'll find them thousands of dollars apart after 3 years because of market demand. The E series sedan is a great car, but you and the rest of market may be looking at SUV's and the market for these vehicles reflect that price. After 6 years, they will not be selling for $30K...as noted above, check autotrader.ca. It's a great website for true market value.

Isn't that like saying, I saw this on sale on E-Bay for this much.

IOW, isn't what you see on Autotrader just the asking price, or do they show sold prices?

(I once sold a body shop spray booth on either Auto or Equipment trader. It is a great publication.)