MenuMENU
SearchSEARCH

Car Types Depreciate Differently

Hybrids, trucks fare better as post-pandemic market normalizes with revived inventories.

March 27, 2025
Car Types Depreciate Differently

Hybrids like the Toyota Prius hold onto their value longer than many gas-powered vehicles, according to the study.

Credit:

Toyota

2 min to read


When it comes to retaining value over time, a newly released study shows hybrids and pickups hold on to the most while electric vehicles lose the most.

The iSeeCars.com research revealed a sometime stark disparity among various vehicle types when it comes to value retention as measured over the first five years of ownership. 

EVs, according to the study, lose 59% of their value in that initial period, iSeeCars says. By contrast, hybrids and pickups shed just about 40%. 

It found the industry average to be in the middle at 46%, a steeper drop than the 39% decline observed in 2023 but less than 2019’s 50% depreciation.

In its analysis of more than 800,000 5-year-old vehicles sold between March 2024 and this past February, iSeeCars found that sports cars and small SUVs also do better on value retention, with strong showings in its top 25 ranking.

Meanwhile, both EVs and some luxury vehicles’ values tend to tank the most.

Though all vehicle types are depreciating faster than they did two years ago, the study found, hybrids have hewed closest to pandemic-era peaks.

“Depreciation remains the most expensive aspect of buying a new vehicle,” said iSeeCars Executive Analyst Karl Brauer in a press release on the study results. 

“The difference between buying a hybrid versus an electric vehicle could be tens of thousands of dollars in lost value.”

IseeCars explained that the depreciation increase results from normalization of new- and used-vehicle supply after the pandemic.

Used car prices have dropped since their peak during the pandemic, as reflected in higher 5-year depreciation rates across all vehicle types. This means new cars are losing more money after 5 years because both the new and used car supply is slowly returning to normal following the plant shutdowns during COVID.”

LEARN MORE: Top 10 2025 Vehicles Named

 

More Showroom

Industryby Hannah MitchellDecember 10, 2025

November Underlines Have-and-Have-Not Market

ATPs, asking prices stay elevated as affordable model sales languish and pricey ones flourish

Read More →
Industryby StaffNovember 26, 2025

Black Book: Weekly Market Update

Midsize luxury and subcompact luxury crossover segment depreciation quickened last week amid overall declines.

Read More →
Salesby Hannah MitchellNovember 17, 2025

October Brings Used Sales Turnaround

Still-pricey market nonetheless sees healthy volume

Read More →
Ad Loading...
Salesby Hannah MitchellNovember 12, 2025

New-Car Market Tips Further Toward the Wealthy

Average October prices barely skipped a beat from September’s records.

Read More →
ShowroomNovember 3, 2025

Today’s Pricing Challenge

It’s wise to know your sweet spots in a volatile market.

Read More →
Industryby Hannah MitchellOctober 22, 2025

Tesla Gets Slower in Golden State

The EV maker continued to lose market share in the state in Q3

Read More →
Ad Loading...
Salesby Hannah MitchellOctober 22, 2025

October Sales Down

Expected decline in EV deliveries not as bad as some might have expected

Read More →
Industryby Hannah MitchellOctober 13, 2025

EV Sales Widespread in Market-Leading State

California penetration far outpaces rest of U.S., including in some GOP counties.

Read More →
Industryby Hannah MitchellOctober 8, 2025

Fresh Auto Consumer Loyalty Perspective

Retention picture changes across power trains, demographics and auto segments, study finds

Read More →
Ad Loading...
Industryby Hannah MitchellSeptember 24, 2025

Another Look at Loyalty

J.D. Power study shows similar erosion to S&P’s research, finding model supply, segment shifts can test allegiance.

Read More →