Though some might think it’s the cost of fuel or repairs, but it’s depreciation, which is how much of a car or truck or SUV’s original value is lost over time, that is an owner’s largest ownership expense. Owning a model that returns a higher resale value means being able to make a larger down payment to help lower monthly expenditures on the next vehicle and perhaps even qualify for a lower financing rate.
Resale value is an especially important consideration for those shopping in the luxury vehicle market, simply because there’s more money at stake to lose. It’s also crucial in new-vehicle leasing, as monthly payments are based on the difference between the transaction price and what the leasing company predicts the vehicle will be worth the end of the term.
Unfortunately too many motorists fail to give serious thought to their rides’ resale values until trade-in time, rather than doing their homework up front to find a vehicle that both meets their needs and budgets and will be able to hold onto its value the most tenaciously over time.
According to Kelley Blue Book (KBB), the average new vehicle from the 2025 model-year should be worth about 44.6% of its original MSRP (manufacturer’s suggested retail price) after a typical five-year ownership period. Of course any model’s ultimate resale value will depend on its mileage, condition and options, but all else being equal, that means a car priced at the national average of around $49,000 today will be worth around $21,854 after five years on the road. That comes out to $27,146 lost to depreciation.
On the other hand, a crafty new-car shopper that instead chooses a model which beats the average five-year resale value by, let’s say 10%, will be able to pocket an additional $4,900 at trade-in time.
Determining how much or little a given new car, truck or SUV will be worth a half decade down the road is a statistical soothsayer’s challenge that depends on an amalgam of variables. These include local supply and demand issues, the average value of dealer discounts and automakers’ incentives for given models and specific regional preferences (i.e. pickup trucks rule the roads in Texas, while all-wheel drive cars and crossovers tend to be favored in snowy parts of the country.
Fortunately, the experts at KBB regularly monitor these and other factors to determine predicted resale values for most makes and models sold in the U.S.
And The Winners Are…
For 2025 the vehicle KBB says should maintain the tightest grip on its MSRP is the midsize Toyota Tacoma pickup truck, with a whopping 64.1% retained at the end of a five-year ownership cycle. The 10 best vehicles in this regard are expected to retain an average of nearly 58% of their original values after a half-decade. We’re featuring the top 10 list below, noting the average percentages of each model’s original MSRPs retained after five years.
Reflecting current buyer preferences among new vehicles, seven of the top 10 are either SUVs or pickup trucks, with the remaining three being red-hot sports cars and not a sedan in sight. Among brands delivering the highest average retail values, Toyota beats all comers with first-place finishes in seven out of 25 categories, while the company’s Lexus likewise leads all luxury brands with six segment winners.
The passenger cars KBB expects to return the best resale values include the Honda Civic and Accord, Acura Integra, Chevrolet Corvette and the Lexus ES and LS. Top-finishing SUVs include the Subaru Crosstrek, Honda CR-V, Toyota 4Runner, Grand Highlander and Sequoia, the Lexus UX, NX and RX and the Mercedes-Benz G-Class. Best pickups in this regard are the Ford Maverick and the Toyota Tacoma and Tundra, while the minivan expected to beat the competition is the Toyota Sienna. Best full-electric models for resale values are the Tesla Model3, Porsche Taycan, Lexus RZ and the Rivian R1S and R1T, while the top hybrid is the Toyota RAV4 Plug In.
Of course we’ve yet to see how President Trump’s global trade tariffs, both enacted and those still on the table, will affect new-vehicle prices and demand in the short term and resale values moving forward. As always, stay tuned.
The 2025 Vehicles Predicted To Have The Best Five-Year Resale Values
- Toyota Tacoma (+64.1% of MSRP)
- Chevrolet Corvette (+61.0% of MSRP)
- Toyota Tundra (+60.9% of MSRP)
- Toyota 4Runner (+60.0% of MSRP)
- Ford Bronco (57.0% of MSRP)
- Mercedes-Benz G-Class (56.6% of MSRP)
- Honda CR-V (54.4% of MSRP)
- Toyota RAV4 (53.9% of MSRP)
- Porsche 911 (53.8% of MSRP)
- Toyota GR Supra (53.7% of MSRP)
Source: kbb.com; click here to read the full report.
