Deal Guard - How Much Value Will You Lose—Is Your Car Depreciating Too Fast?

How Much Value Will You Lose—Is Your Car Depreciating Too Fast?

July 13, 20253 min read

🚗 How Much Value Will You Lose—Is Your Car Depreciating Too Fast?

“Buying a new car today? Just know it’s worth thousands less before your first oil change.” 😬 - Chase Jordan

What You’ll Learn:

  • How quickly cars lose value right now

  • Which models hold value—and which don’t

  • Why fast depreciation can wreck your deal

  • How Deal Guard, your car buying consultant, protects you


📉 How Fast Do Cars Lose Value in 2025?

New cars still depreciate fast—and sometimes even faster than expected. Here' what we know:

  • On average, vehicles lose about 16% in the first year, then drop an additional 12% in year two, retaining just 45% after five years.

  • A three-year depreciation rate in the U.S. is roughly 32.4%.

  • Some models are much steeper: certain electric trucks dropped about 38% in under two years, far exceeding the average for new vehicles.

  • Luxury EVs, like some performance sedans, have lost over 60% in five years, especially compared to hybrids and trucks.

That means a $50,000 car could be worth just $25,000 after five years.

😭 Yikes.


🚗 Which Cars Hold Surprisingly Well?

Some models buck the trend:

  • Toyota Tacoma loses only 17% after three years

  • Toyota Supra around 18%, and Subaru BRZ at 19%

These vehicles retain value due to reliability, demand, and resale reputation. I would advice doing your research when you buy a car to retain your value longer!


💸 Why Depreciation Matters for You

  1. Trade-in/trade-up power is hurt
    If your car craters, you’re likely in negative equity—owing more than it’s worth.

  2. Longer loans cost more
    Combine depreciation with long-term financing and you pay interest on money your car no longer holds.

  3. Insurance & leasing cost sky-high
    Even if you don’t own the car outright, depreciation eats into lease-end values.


🤔 Are You at Risk of Rapid Depreciation?

Look for warning signs:

  • EVs and luxury vehicles often depreciate fastest.

  • Cars with low demand or heavy incentives tend to drop value faster.

  • High-mileage or poorly maintained cars lose value quickly.


🧭 How Deal Guard Protects You from Depreciation Traps

As your car buying concierge, Deal Guard equips you to avoid value-loss disasters:

  • Guides you toward cars that hold value, not those that crash quickly.

  • Helps structure loans considering realistic depreciation curves.

  • Offers data-driven advice on loan vs. lease vs. private sale.

  • Helps prevent negative equity by targeting vehicles that maintain resale value.


📊 What You Should Do Now

  • Research depreciation for your target car model.

  • Factor a 15–20% drop in year one into your buy/trade/trade-up strategy.

  • Choose a vehicle with strong resale reputation.

  • Use Deal Guard to see how financing and depreciation impact your total cost.


😎 Final Word from Chase

It’s easy to fall for “buy now, pay later” deals—but don’t ignore the hidden cost of depreciation.

At GetDealGuard.com, we help you choose vehicles that not only fit your budget now, but keep value as years go by.

🎯 Want a deal that stays smart with time?
Let Deal Guard analyze depreciation, financing, and long-term value—so your purchase still looks good in year five.

Back to Blog