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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. 

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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.

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“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

 

Originally posted on F&I and Showroom

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