This Car Holds Its Value Better Than Any Other in America
A car begins to depreciate as soon as you drive it off the lot — but not all cars lose as much value over time. The car that holds its value better than any other in America is the Jeep Wrangler.
Used cars have done relatively well recently. Sizing up the car market over the past year, iSeeCars Executive Analyst Karl Brauer put it this way, “We’ve seen record high used car prices over the past 15 months as a result of the microchip shortage, and that has slowed down the average depreciation rate across all vehicles.”
Still, Brauer added that indeed “Vehicles that have historically maintained their value well have depreciated even less this past year, but even in today’s market some cars continue to drastically drop in value.” (Find out which is the longest lasting cars on the road.)
Car prices, both used and new, have skyrocketed in the past year for several reasons. Among them is pent-up demand. Dealerships were closed for weeks, and sometimes months, due to the COVID-19 pandemic.
More recently, the supply of cars has plummeted, due in part to a severe shortage of the semiconductors used in car electronics systems. This shortage will not let up until next year. In the meantime, many dealers are nearly empty of inventory, and manufacturers have had to shutter some assembly lines. (As for new cars, these are the fastest selling cars in America right now.)
The reason for used car price spikes is simple. People who do not want to wait for the latest make and model of the cars they want buy them used instead. Yet, not all cars hold their value well over time, despite this recent surge in demand.
For its Top 10 Cars That Hold Their Value Best: Five-Year-Car Depreciation Across All Vehicle Segments study, research and car sales company iSeeCars reviewed more than 800,000 used cars from model year 2016 sold between January and August 2021 to find those with the lowest and highest loss in value from manufacturer’s suggested retail price after five years.
24/7 Wall St. reviewed iSeeCars study and listed the 20 cars that hold their value the best. While the average five-year depreciation across all vehicles considered was 40.1%, the cars on this list lost 31.2% of their value or less over the last five years.
The car with the lowest five-year depreciation is the Jeep Wrangler at only 9.2%. The car with the second-lowest depreciation is a Jeep as well, the Jeep Wrangler Unlimited, which has four doors and a five-year depreciation rate of only 10.5%.
Jeep Wranglers retain their value “due to their enthusiastic fanbase, as well as their durability and performance across all terrains, especially off-road. Jeep Wranglers also have maintained their iconic design, so even older models don’t appear dated.”
Click here to see the car that holds its value better than any other in America
Source: Read Full Article