Cars with the worst depreciation
The short answer
The cars that lose value fastest in the US tend to share a few traits: a high original price, expensive upkeep once the warranty ends, rapidly changing technology, and more supply than used-car demand. In practice, this usually means large luxury sedans, high-end luxury SUVs, some electric vehicles, and models with a weak reliability reputation or heavy fleet sales. This article does not give a ranked list of models with percentages, because no current, verified depreciation figures were available. Rankings also shift from year to year, so check up-to-date data for the exact model year, trim and powertrain you are considering.
Depreciation means the drop in a car's market value over time, usually measured from the original sticker price to its resale or trade-in value. A car that depreciates heavily is costly to buy new and sell a few years later. The same car can be good value as a used purchase.
Conditions that change the answer
Whether you are buying new or used: steep depreciation hurts the first owner and can benefit a later buyer, as long as running costs are manageable. Model year and generation: a redesign or facelift can quickly lower the value of the outgoing version, so depreciation for one model year may not apply to the next. Trim and options: expensive option packages rarely keep their full cost at resale, so top trims often lose more in dollar terms than base trims. Powertrain: within one model, gasoline, hybrid, diesel and electric versions can hold value very differently. Treat them as separate cases. Incentives and pricing: large discounts or rebates on new cars, including EV price cuts by manufacturers, tend to pull down used values for the same model. Region and market conditions: local demand, climate, fuel prices and wider used-car supply all affect resale values. National averages may not match what you can sell for.
Why certain cars lose value quickly
Luxury sedans and large luxury SUVs often carry high sticker prices, and many are leased. When leases end, a wave of similar used cars comes onto the market at once. Their repair and maintenance costs after the warranty ends can also put off second and third owners, which lowers what buyers will pay.
Electric vehicles can depreciate quickly for several reasons. Battery and range technology improves fast, buyers worry about battery condition and replacement cost, and new-car price cuts or changes to incentives can reset used prices. This varies a lot by model and has changed over time, so recent data matters more here than general reputation.
Models sold in large numbers to rental and corporate fleets also tend to lose value faster, because many lightly varied, similar-mileage examples reach the used market together. A brand or model with a poor reliability reputation sees the same effect, since buyers discount the price to cover expected repairs.
Cars that tend to hold value better usually have the opposite profile: steady demand, a strong reliability reputation, reasonable running costs and limited supply. Popular pickups and some compact SUVs are often cited as examples. As with the fast-depreciating group, check current figures for the specific version you are considering.
What to check before you buy
Current resale and trade-in values for the exact model year, trim and powertrain, compared against the original sticker price, using more than one valuation tool. Asking prices for one-, three- and five-year-old examples of the same model, to see how fast value has actually fallen. Whether a redesign is due soon, since that may speed up depreciation of the version you buy. Remaining factory warranty, and whether coverage transfers to a second owner. Typical maintenance and repair costs after the warranty ends, especially for luxury models, complex air suspension or advanced driver-assistance hardware. For EVs and hybrids: battery warranty terms and remaining coverage, and any available battery health report. Vehicle history: past use as a rental or fleet car, accident records and service history, all of which affect value now and when you sell.
Choosing a next step
If you plan to buy new and sell within a few years, favor models with a record of holding value, and avoid paying for expensive options you do not need. If you are shopping used, a fast-depreciating luxury car or EV can offer a lot of car for the money. Budget for post-warranty repairs, and get a pre-purchase inspection from an independent mechanic. In either case, base your decision on current values for the specific version you are considering rather than on general reputation.
Evidence gaps
This guide is based on general principles of how cars lose value. It does not include confirmed depreciation percentages, prices, model rankings or dates. Treat the categories above as starting points, and confirm with current valuation data for your region before buying or selling.