When it comes to buying an SUV, the last thing you want to do is see a big drop in value when it comes time to sell. Before you go shopping, check out this list of the top 10 SUVs for resale value over the past 5 years.
This study comes to us from iSeeCars.com which offers a place to shop for a new car.
The research team “identified the top 10 lowest- and highest-depreciating SUVs as compared to the segment’s five-year depreciation of 51.6 percent. The SUV that depreciates the least is the Jeep Wrangler Unlimited, which loses 30.0 percent of its value over five years.”
Lowest Depreciating SUVs
Here are the top 10 SUVs for resale value:
The list is a mix of so-called domestic and foreign models, however the abundance of Toyota models is hard to overlook.
“Toyotas have a strong reputation for reliability and longevity, and their high resale values reflect that,” said iSeeCars CEO Phong Ly.
What about those Mercedes Benz models?
“The G-Class models are known for their off-road capabilities, and off-road SUVs tend to hold their value better than their less-rugged counterparts,” said Ly. “The G-Class is also a desirable vehicle that is viewed as a status symbol, and because its body style has not changed significantly, a five-year version is almost indistinguishable from a late-model one.”
Rounding out the list are the sixth-ranked Honda CR-V and the tenth-ranked Subaru Outback. “Both the Honda CR-V and the Subaru Outback have strong reputations for longevity and reliability, which helps them hold their value,” said Ly.
Highest Depreciating SUVs
Here are the ones to avoid:
iSeeCars.com says, “the SUV that depreciates the most is the Lincoln MKT, which loses 66.1 percent of its value over five years. With an average new price of $56,474, buyers can buy a five-year-old version for $19,123.”
Yes, incredibly you can wait just five years and find a mid $50ks SUV for under $20k. Crazy!
iSeeCars.com goes on to explain the large amount of luxury vehicles on their not to buy list.
“Luxury SUVs tend to have steep depreciation because of their high starting prices, which have to come down significantly to attract buyers in the secondary marketplace,” said Ly.
Lincoln models earn the top two spots. The Lincoln MKT midsize SUV is the top depreciating SUV followed by the second-ranked Lincoln Navigator L full-size SUV. “Although it has an abundance of cargo space, the Lincoln MKT has drawn criticism for its styling, so its low resale value is likely due to buyers favoring other vehicles in the highly competitive midsize SUV segment,” said Ly. “Meanwhile, the Lincoln Navigator L is a common livery vehicle, so its resulting high mileage likely has a negative effect on its resale value.”
BMW has the most models on the highest-depreciating list with three, including the third-ranked X3, the sixth-ranked X6, the ninth-ranked X1. “The high maintenance and repair costs of German vehicles like BMWs leads to the high depreciation of these vehicles,” said Ly.
The fourth-ranked GMC Yukon XL stands out as the only non-luxury vehicle on the list. “A new Yukon XL has a high average price of $66,488, so it’s no surprise that it drastically depreciates as a luxury vehicle would,” Ly noted. “The Yukon XL is also a common livery vehicle, so its high mileage likely brings down its price.”
For this study, iSeeCars.com analyzed more than 6.9 million new cars from model year 2014 sold in 2014, and more than 800,000 used cars from the same model year sold between January and October 2019. New car prices from 2014 were inflation-adjusted by 7.9% to 2019 dollars, based on data from the US Bureau of Labor Statistics. For each model and body type the depreciation in average price from 2014 to 2019 was mathematically modeled. Low-volume vehicles, heavy-duty trucks and vans, and models no longer in production as of the 2019 model year were removed from further analysis.
One final thing to consider is the role of incentives on resale values listed on these charts. While these SUVs lose the most based on the manufacture’s stated new car price (MSRP), a large incentive can help reduce resale value losses by soaking up some of the difference between the new car price and the resale price.
For example, Toyota is often viewed as one of the manufacturers with the least amount of incentives on their vehicles and this also plays a role in their resale value performance.