Japanese Cars Lead the Way in Retaining Value, New Study Shows
While most new cars experience a significant drop in value over time, certain models hold their price remarkably well. A recent analysis by US News, focusing on 2022 model year vehicles, reveals that Japanese cars, particularly those manufactured by Toyota, demonstrate the lowest depreciation rates after three years of ownership.
The study determined the average financial loss for each vehicle relative to its initial purchase price. Topping the list is the Toyota Corolla Cross, exhibiting a minimal depreciation of just 2.63%, equating to a loss of only $662. this indicates owners retain nearly the full value of their investment after three years.
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Toyota’s strong performance extends beyond the Corolla Cross. The 4Runner, C-HR, and Tacoma truck all maintain depreciation rates below 6%, highlighting Toyota’s consistent reputation for reliability and durability – a quality recently acknowledged with a ranking as one of the most trusted automotive brands in the US.
Beyond Toyota, other Japanese automakers also fare well. the Subaru Crosstrek secures the fourth position with a depreciation of only 4.90%, largely attributed to its standard all-wheel drive capability.The Honda Civic and Nissan Versa also appear within the top ten, further supporting the trend of superior value retention among Japanese vehicles.
Breaking the Asian dominance,the Ford Mustang emerges as the sole American vehicle on the list. With a depreciation rate of 5.41%, the Mustang benefits from its iconic status, timeless design, and continued appeal to buyers. Its position as one of the last remaining gasoline-powered sports cars further contributes to its market value.
Conversely, the analysis indicates that Korean vehicles tend to depreciate more rapidly. The Kia Rio, such as, experiences a depreciation rate approaching 8.5%.
