Whether you choose to buy a new or used car, you can count on one thing: Your ride will lose value immediately after you take possession. Unlike real estate, vehicles are bound by the law of depreciation. They’re depreciating assets, meaning they lose value over time.
That said, not all cars depreciate at the same rate. Some vehicle models hold their value surprisingly well, while others depreciate rapidly, underperforming comparable cars by substantial margins.
So if you’re looking for a new or preowned car that’s likely to hold its value better than comparable vehicles, start with these models.
Best Cars That Hold Value Well
Used vehicles rarely sell for more than their manufacturer’s suggested retail price (MSRP) for new cars, commonly known as the sticker price. You should never buy a new or pre-owned car expecting to sell it for more than you paid. You might fetch a higher price when you forgo the dealer trade-in and sell in a private-party transaction, but it’s doubtful you’ll recoup your initial investment.
Unless otherwise noted, these vehicles all hail from the 2019 or 2020 model year, so check back often, as the lineup is likely to change as new and updated models and trims hit the market. Raw data is compiled from the Kelley Blue Book (KBB) Best Resale Value Awards list and the Edmunds Best Retained Value Awards.
1. Honda Fit
- Class: Subcompact (hatchback)
- EPA MPG: 33 city; 40 highway
- MSRP (2020): $16,190
- Five-Year Resale Value: 52.3% of total cash price
The Honda Fit is a millennial car buyer’s dream. It’s affordable, fuel-efficient, and super-roomy. In fact, the Fit’s most significant selling point is probably its weirdly spacious interior. It’s made for drivers who frequently carry long-legged passengers (whether friends or rideshare customers) and for active types more likely to put down the back seat and jam skis, bikes, kayaks, or stand-up paddleboards into the cavernous trunk. To find a more spacious car with similar reliability ratings, you need to move up at least one class level, paying thousands more in the process.
Sadly, Honda chose to stop selling the Fit in the United States after the 2020 model year. For now, you can still find new Fits on clearance and gently used Fits abound on the resale market.
2. Subaru Crosstrek
- Class: Subcompact SUV
- EPA MPG: 28 city; 33 highway
- MSRP (2021): $22,250
- Five-Year Resale Value: 50.4% of total cash price
Subaru Crosstrek is a popular, instantly recognizable subcompact SUV that holds its already reasonable purchase price better than any other vehicle in its class. Like Honda Fit, its petite frame hides a surprisingly roomy interior that offers plenty of space for sporting equipment, luggage, and groceries. Plus, Crosstrek comes with standard four-wheel drive, making it an invaluable ride for active drivers.
3. Toyota RAV4 Hybrid
- Class: Compact SUV
- EPA MPG: 41 city; 38 highway
- MSRP (2021): $28,500
- Five-Year Resale Value: 48.6% of total cash price
Toyota RAV4 Hybrid is the hybrid-electric version of the bestselling compact SUV on the market today.
Like other popular Toyota models, such as Camry and Corolla, RAV4 has evolved considerably over its long lifetime, moving steadily upmarket from its days as a scrappy Jeep lookalike. Today’s RAV4 Hybrid boasts a comprehensive package of road safety features (like automatic emergency braking) called Safety Sense 2.0, offers category-leading fuel efficiency, and offers welcome options like blind-spot detection and heated seats.
4. Kia Telluride
- Class: Full-size SUV
- EPA MPG: 20 city; 26 highway
- MSRP (2021): $32,790
- Five-Year Resale Value: 47% of total cash price
Kia Telluride is a relative newcomer to the full-size SUV segment, joining stalwarts like GMC Yukon and Toyota 4Runner. Still, it has already proven to be one of the most reliable large vehicles on the market, with value retention figures to match. A relatively low sticker price along the lines of what buyers expect from the crossover SUV segment is another key perk for families seeking good overall value.
5. Subaru Forester
- Class: Compact SUV
- EPA MPG: 26 city; 33 highway
- MSRP (2021): $24,795
- Five-Year Resale Value: 45% of total cash price
Subaru Forester is the automaker’s ever-popular compact SUV, one step up the model ladder from the entry-level Crosstrek. With more cargo space and a more powerful engine, it’s appropriate for active families who need enough interior cargo space to make life happen and enough zip to get where they’re going on time. Yet Forester isn’t much less efficient or much more expensive at a baseline than Crosstrek.
6. Subaru Impreza
- Class: Compact sedan
- EPA MPG: 28 city; 36 highway
- MSRP (2021): $18,795
- Five-Year Resale Value: 43.1% of total cash price
If you live in a cold, snowy climate but don’t want to settle for a gas-guzzling SUV, Impreza is your ideal car. This lively compact car has the lowest MSRP of any four-wheel-drive vehicle, so it’s a great compromise between safety- and budget-consciousness. Plus, it’s fun to drive and surprisingly fuel-efficient.
Also, the unusual engine configuration (boxer-4, as opposed to the more traditional I-4) produces a lower center of gravity, which is crucial in slick conditions.
7. Honda Accord
- Class: Midsize sedan
- EPA MPG: 30 city; 38 highway
- MSRP (2021): $24,970
- Five-Year Resale Value: 38% of total cash price
Honda Accord is one of the bestselling and best-known midsize cars on the U.S. market today. Unlike most category mates, Accord comes in sedan and coupe configurations, the latter of which is noteworthy for drivers who enjoy looking sporty without paying sports car prices. The 2017 model year saw the debut of a slew of new tech-aided safety features, making Accord a solid choice for frugal, efficiency-minded families hesitant to embrace the compact SUV revolution.
8. Subaru Legacy
- Class: Midsize sedan
- EPA MPG: 27 city; 35 highway
- MSRP (2021): $22,995
- Five-Year Resale Value: 37.5% of total cash price
Think of Legacy as Impreza’s older sibling. It’s a little bigger, a little more mature, a little more refined, and still four-wheel drive. There’s plenty of cabin space. So unless you have a big clan or need to lug around lots of equipment for the kids, Legacy is a practical entry-level family sedan too.
If you’re safety-conscious, splurge on the EyeSight driver-assist system, which, per KBB, boasts “adaptive cruise control, pre-collision braking, lane-departure warning, Lane Keep Assist and Lead Vehicle Alert.”
9. Toyota Camry
- Class: Midsize sedan
- EPA MPG: 28 city; 39 highway
- MSRP (2021): $25,045
- Five-Year Resale Value: 40.9% of total cash price
Toyota Camry has been around longer than many millennial drivers have been alive, yet it remains one of the most popular sedans on the road today. That’s due in part to its above-average value retention, which could itself be a function of the model’s name recognition and perceived reliability. But Camry has kept up with the times too, adding indispensable safety features like automatic emergency braking.
10. Volvo XC40
- Class: Subcompact SUV
- EPA MPG: 23 city; 32 highway
- MSRP (2021): $33,700
- Five-Year Resale Value: 37.3% of total cash price
Volvo XC40 is one of the least expensive luxury SUVs on the market. It clocks in at well under $40,000 despite a slew of standard and optional safety features, like collision warning and mitigation, lane-keeping assist, automatic emergency braking, blind-spot and rear cross-traffic warnings, and a semiautonomous driving mode.
In 2021, Volvo rolled out an electric vehicle version of XC40. The Recharge, as it’s known, has a range of more than 200 miles, making it a viable (and value-holding) electric option for extreme commuters and road-trippers alike.
11. Toyota Avalon
- Class: Full-size sedan
- EPA MPG: 25 city; 34 highway
- MSRP (2021): $35,875
- Five-Year Resale Value: 35.1% of total cash price
The Toyota Avalon doesn’t hold its value as well as the smaller cars on this list, but its durability is enough to outpace its full-size classmates. Avalon is a grown-up, refined version of the Camry with a host of luxurious options, such as leather seats, fancy climate control, and generous infotainment systems, that can substantially increase its sticker price.
For the safety-conscious, a rearview camera and heated outside mirrors are must-haves. If fuel efficiency is a top priority for you, consider the hybrid version, which costs about $5,000 more upfront but averages about 40 miles per gallon.
12. Toyota Prius Prime
- Class: Hybrid subcompact
- EPA Range: 25 miles battery-only; 640 miles battery and fuel
- MSRP (2021): $28,220
- Five-Year Resale Value: 40.3% of total cash price
With a total range of nearly 650 miles between battery power and fuel, this dependable gas-electric hybrid is a fantastic choice for drivers with long commutes. Its 25-mile battery-only range means long intervals between fill-ups for city-dwellers and others who stick primarily to short trips.
One note of caution: Like all hybrids, Prius Prime’s resale value is closely tied to gasoline price trends. During sustained periods of rising gas prices, this vehicle is likely to hold its value better during stretches when gas is cheap.
13. Lexus IS
- Class: Entry-level luxury
- EPA MPG: 21 city; 31 highway
- MSRP (2021): $39,050
- Five-Year Resale Value: 38.4% of total cash price
Who said luxury wasn’t affordable? Lexus IS is more expensive than other high-resale-value sedans, but it’s an excellent value.
It holds its value better than any other car in its class thanks to its longtime status as one of the best luxury cars available for less than $40,000. Premium audio and leather seating both come standard, the sleek profile is eye-catching, and the surprisingly responsive handling is more Subaru than Lexus. Comparable German luxury models cost $5,000 to $10,000 more upfront, so the Lexus IS is an exquisite choice for discerning, cost-conscious buyers.
14. Jeep Wrangler Four-Door
- Class: Off-road SUV
- EPA MPG: 22 city; 29 highway
- MSRP (2021): $31,795
- Five-Year Resale Value: 55.8% of total cash price
Wrangler is another household name that’s been around since the first half of the 20th century, and the four-door Jeep Wrangler continues the rugged Jeep tradition. Unlike its forebears, Wrangler Unlimited has a spacious interior big enough to ferry your family or crew and its gear to its next destination.
The rough handling and engine roar take some getting used to, and the safety package remains subpar for the crossover category. Plus, the Wrangler four-door has a higher sticker price than other off-road SUVs, so it’s not ideal for truly frugal drivers. That said, with resale value like this, it’s easy to recoup a good chunk of your investment when it’s time to upgrade to a more family-friendly ride.
15. Toyota Highlander
- Class: Midsize crossover SUV
- EPA MPG: 21 city; 29 highway
- MSRP (2021): $35,085
- Five-Year Resale Value: 45% of total cash price
For its size, the Highlander is surprisingly affordable and fuel-efficient. It can carry up to eight people, and the hybrid version is as efficient as any midsize SUV on the market today. You can also opt for a four-cylinder gas option that’s underpowered but still quite efficient.
One notable downside is the lack of towing power. If you have a boat or ATV, you’re better off with a full-size SUV or pickup. On the bright side, there’s loads of cargo space with the third row folded down.
16. Subaru Outback
- Class: Midsize SUV
- EPA MPG: 26 city; 33 highway
- MSRP (2021): $26,795
- Five-Year Resale Value: 41.3% of total cash price
Outback has been the family vehicle of choice for frugal outdoorsy folks since the 1990s. With a sticker price significantly lower than most midsize SUVs, not to mention larger gas-guzzlers, its excellent resale value is a bonus. Add Subaru’s famed winter-weather handling and solid off-road capabilities, and it’s not difficult to see why Outback inspires such loyalty.
17. GMC Yukon
- Class: Full-size SUV
- EPA MPG: 21 city; 27 highway
- MSRP (2021): $51,000
- Five-Year Resale Value: 46.4% of total cash price
Yukon is a full-size SUV with a distinguished pedigree dating back to the 1990s, when it was basically a glorified, fully enclosed full-size pickup truck.
It’s now a surprisingly luxurious family vehicle with a slew of creature comforts and modern conveniences, including wireless mobile phone charging, two rear-seat infotainment screens, a power liftgate, and ventilated seats.
It also boasts a comprehensive array of high-tech safety features, including parking assist and automatic blind-spot monitoring. And as a full-size SUV, it’s all-weather capable and more than sufficient to carry cargo on road trips of any length.
Yukon’s five-year resale resiliency is noteworthy and better than any other vehicle in its class by a narrow margin. However, given its high upfront price, it’s not the best investment for buyers who prioritize cost above all else.
18. Toyota Tacoma
- Class: Midsize pickup
- EPA MPG: 20 city; 23 highway
- MSRP (2021): $26,400
- Five-Year Resale Value: 55.8% of total cash price
Tacoma has also been around for quite a while. Like Yukon, this trusty pickup has really grown up. With a four-door cab and a surprisingly elegant interior, today’s Tacoma is more family wagon than work truck.
Nevertheless, the suspension remains rugged enough and the drivetrain strong enough to handle rough roads and heavy loads. A built-in tie-down system expands the bed’s potential, and a slew of optional features (such as rear locking differential and Crawl Control, an auto-adjusting multi-terrain system) make off-roading a realistic goal for intrepid Tacoma owners.
19. GMC Sierra HD
- Class: Heavy-duty pickup
- EPA MPG: 15 city; 19 highway
- MSRP (2021): $36,200
- Five-Year Resale Value: 56.8% of total cash price
The GMC Sierra HD is a serious truck for serious jobs. Even if you don’t have a job or business that requires you to haul equipment and supplies onto dusty, muddy work sites, Sierra’s outrageous towing capacity (nearly 15,000 pounds) is more than enough to get your trailer, boat, or shanty wherever it needs to go. The unsurprising downside is poor fuel efficiency, which anecdotal reports peg a few notches below official ratings.
20. Toyota Tundra
- Class: Full-size pickup
- EPA MPG: 13 city; 17 highway
- MSRP (2021): $34,025
- Five-Year Resale Value: 59% of total cash price
Bigger and brawnier than Tacoma, Tundra is made for truck owners who need more cab space, towing capacity, on-road power, or a just higher profile. With the right set of options, the engine is powerful enough to tow a recreational vehicle, and the bed is large enough to fit a subcompact car.
If you’re a sucker for creature comforts, the much more expensive Platinum trim has all the trappings of a full-size SUV. If you live in a cold climate or rural area, spring for the four-wheel-drive version.
21. Toyota Sienna
- Class: Minivan
- EPA MPG: 36 city; 36 highway
- MSRP (2021): $34,460
- Five-Year Resale Value: 44.7% of total cash price
Toyota Sienna is the minivan of the future. Available only as a gas-electric hybrid, it boasts exceptional fuel economy for a large vehicle (36 miles per gallon combined) without compromising the cargo space buyers expect from a family vehicle.
Plus, like other family-friendly Toyota vehicles, Sienna offers the standard Safety Sense 2.0 vehicle safety package featuring active cruise control, automatic emergency braking, and lane-departure alert.
22. Honda Odyssey
- Class: Minivan
- EPA MPG: 19 city; 28 highway
- MSRP (2021): $32,290
- Five-Year Resale Value: 41.9% of total cash price
Though it’s considerably less efficient than Toyota Sienna, Honda Odyssey is a worthy alternative to its largest competitor’s flagship minivan. It’s arguably even more flexible and user-friendly than Sienna thanks to low-step doors and a roomy back compartment you can significantly expand with a few tweaks to the interior seating.
But it doesn’t hold its value quite as well, a key consideration for families looking to sell their Odysseys before they reach the scrap heap.
What Affects the Value of a Used Car?
All these vehicle models retain their value unusually well. But the value of any given used car depends on a whole host of factors, and vehicle make and model are only two of them.
Some factors that affect a used car’s resale value are predictable. For example, used-car buyers and sellers can bank on variables like vehicle mileage, exterior and interior condition, and accident history affecting what they pay for a used car.
All other things being equal, a well-maintained, accident-free car with low mileage sells better than a high-mileage workhorse that has more than its share of dings.
Other factors can be temporary, even transient. The state of the economy — globally and closer to home — is one such factor. The Manheim Used Vehicle Value Index, a closely watched metric that draws upon more than 5 million used vehicle transactions per year, shows that used vehicle pricing is sensitive to economic conditions.
The Manheim index registered a bear market for used vehicles during the three biggest economic downturns of the past quarter century: the aftermath of the dot-com bust in the early 2000s, the global financial crisis of the late 2000s, and the short-lived crash induced by the onset of the COVID-19 pandemic in early 2020.
By contrast, the Manheim index shows unusual strength in used-car pricing during economic rebounds and booms, like the post-global financial crisis recovery in the early 2010s, the pre-pandemic expansion of the late 2010s, and especially the post-pandemic rebound of the early 2020s, when used vehicle prices rocketed to all-time highs.
The trends revealed by the Manheim index are more complicated than a simple proxy for economic strength or weakness. Still, used-car buyers and sellers should look to price indicators like these as well as broader economic barometers to decide whether it makes sense to buy or sell now or wait for more favorable market conditions.
Final Word
Maybe you’re trying to keep your student debt from spiraling even further by choosing an affordable, economical car for college students. Maybe you’re welcoming a new baby and upsizing your family’s transportation accordingly. Or perhaps you’ve moved to a new city where it’s no longer possible or practical to live without a car.
Whatever your personal needs, you can probably find a car with a good resale value that suits your lifestyle and budget. As you narrow down your choices, use a research tool like Edmunds, Kelley Blue Book, or TrueCar to determine what others in your area have recently paid for your preferred models.
