Five Years Later, This Vehicle Will Retain 61 Percent of Its Value

Average 2018 model-year vehicle that costs $35,000 today should be worth about $12,285 in 2025, according to projections from Kelley Blue Book.

Car dealer showing new car to young couple in showroom
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As car shoppers have long been told, a new vehicle starts to depreciate the moment it's driven off the dealer's lot. That said, some used vehicles retain more of their value than others.

The average 2018 model-year vehicle will retain about 35.1 percent of its original value after five years, meaning a new car with a $35,000 price tag today will be worth close to $12,285 in 2025, according to Kelley Blue Book projections out this week. 

But 10 vehicles should retain more than 46 percent of the manufacturers suggested retail price, or MSRP, and the Toyota Tacoma is expected to be valued at 61 percent of its MSRP after five years, according to yearly calculations by the car information provider.

"Despite the higher incentives available on trucks today, used-car buyers are willing to pay more for trucks, relative to the initial MSRP, than they are for sedans," Eric Ibara, KBB's director of residual values, told The Drive. "Vehicles that retain their value best are typically discounted the least and tend to generate high levels of consumer interest."

Car buyers who understandably focus on the sales price when picking a new vehicle would be wise to also consider what it'll be worth after five years of use. "Resale value is important because depreciation is a bigger expense than fuel, maintenance or insurance," Ibara said. "Choosing a model with better resale value than others is an easy way to save money when buying a car."

Toyota is the 2018 brand with the best resale value, while Porsche placed first in looking at luxury brands, KBB said.

In naming the best resale values by category, the Honda Fit came in at the top for subcompact cars, the Chevrolet Bolt EV for electric vehicles and the Subaru Impreza for compact cars. The Honda HR-V placed first in subcompact SUV/Crossover vehicles, the Subaru WRX for sporty compact cars and the Jeep Wrangler for compact SUV/crossovers. 

The top 10 cars for 2018 best resale value, in alphabetical order, according to KBB: Chevrolet Colorado, Chevrolet Silverado, Ford F-Series, GMC Sierra, Honda Ridgeline, Jeep Wrangler, Subaru WRX, Toyota 4Runner, Toyota Tacoma,  and Toyota Tundra.