Most new vehicles lose roughly 20-25% of value in year one and land around 50-60% of original value by year five, a pattern that's back to historically normal after the inflated used-car values of 2021-2022 unwound. The clearest divergence in 2026 is powertrain: mainstream gas trucks and off-road-oriented SUVs continue to hold value best, while several mass-market EVs have depreciated faster than average as new-EV prices and incentives shifted, though top-selling EV models with strong resale reputations are the exception.
At a glance
| Segment | 5-year depreciation trend |
|---|---|
| Pickup trucks / off-road SUVs | Best value retention; consistently near the top of resale rankings |
| Mainstream sedans/crossovers | Back to a normal, steady depreciation curve |
| Luxury sedans | Depreciate fastest of any mainstream segment |
| Mass-market EVs | Mixed — some depreciate faster than average, a few hold value well |
| Hybrids | Generally hold value better than comparable gas trims |
Back to a normal depreciation curve
During 2021-2022, chip shortages pushed used-car values so high that some vehicles briefly depreciated less than a percent a year — an anomaly, not a trend. That's long over. By 2026, depreciation curves for most mainstream vehicles have returned to the pre-pandemic pattern: a steep first-year drop as the 'new car' premium disappears, then a more gradual decline of roughly 10-15% a year through year five.
Trucks and off-roaders still lead
Full-size and mid-size pickups, along with rugged off-road SUVs, continue to top resale-value rankings from firms like iSeeCars and Kelley Blue Book/Cox Automotive. Steady commercial and personal demand, plus relatively disciplined new-vehicle production, keeps used values firmer for these segments than for cars overall.
Why EV depreciation has been messier
Electric vehicle resale values have been more volatile than gas-vehicle values for a few concrete reasons: new-EV price cuts and shifting incentive rules make last year's EV look expensive by comparison, rapid year-over-year improvements in range and charging speed make older EVs feel dated faster, and uncertainty about battery health/replacement cost weighs on buyer confidence in the used market. The result is a wider spread — some EV models have depreciated well above the market average, while a handful of strong-reputation models have held value close to, or even better than, comparable gas cars.
What determines resale value
- Segment demand — trucks and practical SUVs consistently outperform.
- Reliability reputation — models with a strong track record hold value better than showy but troubled ones.
- Incentive and pricing changes on the new-car side, which reset buyer expectations for used pricing.
- Mileage and condition, which matter more than age alone for any individual vehicle.
- Fuel/energy type — hybrids have generally been resilient; some EVs less so.
Don't assume a heavily discounted new EV is a bargain without checking resale projections — a steep new-price cut on this year's model can pull down the value of last year's used one overnight.
What this means for buyers and sellers
If value retention matters to you, trucks, off-road SUVs and well-regarded hybrids remain the safest bets. If you're buying used, the flip side of fast depreciation is opportunity — some EVs and luxury sedans now offer significantly more car for the money used than new, provided you budget for the segment's typical running costs.
Frequently asked questions
What is the average car depreciation rate in 2026?
Do electric vehicles depreciate faster than gas cars?
Which vehicles hold their value best in 2026?
Is it a good time to buy a used EV given faster depreciation?
Sources & further reading
Figures, prices and policy details were current at the last-updated date above. Automotive pricing, incentives and regulations change frequently — verify time-sensitive details with the linked primary sources. Read our editorial policy and fact-checking standards.
