Most people think about the sticker price when buying a car. But there’s a second cost that’s just as significant and far less talked about: depreciation. According to Kelley Blue Book, the average 2026 model-year vehicle will retain only about 45% of its original value after five years — meaning a $50,000 car today could be worth just $22,500 by 2031. Choosing the right brand can make a difference of thousands of dollars when it’s time to sell or trade in. So which brands actually hold their value?
Toyota — The Undisputed Champion
For the sixth consecutive year, Kelley Blue Book has named Toyota the Best Resale Value Brand. That’s not a fluke — it’s a decade-long pattern rooted in rock-solid reliability. Toyota’s overall resale value average sits at 53% after five years, well above the industry norm. Consumer news also ranked Toyota number one for predicted new-car reliability in 2026. Models like the Tacoma, 4Runner, and RAV4 consistently appear on best-resale-value lists across multiple publications. If long-term value is your priority, Toyota is simply the safest bet.
Lexus — Best in Luxury
For the fifth consecutive year, Lexus took home Kelley Blue Book’s Best Resale Value: Luxury Brand award, retaining an average of 47% of its value after five years — a remarkable figure in a segment where expensive cars tend to bleed value quickly. Lexus benefits from sharing many components with Toyota, giving it the reliability that underpins strong resale. It also ranks first in Consumer Reports’ used-car reliability rankings, which directly fuels buyer demand on the secondary market.
Honda — Consistent and Dependable
Honda has earned a bronze-medal finish in resale value rankings at both the three-year and five-year marks, improving to second place by year seven. Its reputation for low maintenance costs, an extensive service network, and straightforward engineering keeps demand high in the used car market. The Civic, CR-V, and Pilot are perennial strong performers. If Toyota feels too mainstream, Honda is an excellent alternative with nearly identical long-term value credentials.
Subaru — The Sleeper Pick
Subaru often surprises people on resale value lists. According to CarEdge, Subaru has the lowest overall cost of ownership among popular car brands, and it has consistently held its value better than most competitors over the years. All-wheel drive as standard across most of its lineup makes Subaru especially desirable in used car markets across colder, snowier regions — Canada included. The Forester and Outback are particularly strong performers.
🔴 Mazda — A Rising Star
Mazda’s resale values have climbed steadily in recent years, now ranking in the top five at all measurement intervals. Buyers are increasingly recognizing Mazda’s combination of premium-feel interiors, reliable engineering, and competitive pricing. The Mazda3 and CX-5 both perform well in the used market, and the brand’s reputation for driver engagement attracts a loyal customer base willing to pay more for used models.
What Makes a Car Hold Its Value?
A few key factors drive strong resale performance:
- Reliability — Cars with a track record of longevity attract more used-car buyers and command higher prices.
- Service accessibility — Brands with widespread dealer networks and affordable parts are cheaper to own, which keeps demand strong.
- Demand — Popular body styles (trucks, compact SUVs, hybrids) naturally retain more value because buyers compete for them.
- Simplicity — Complex, expensive drivetrains and rare parts hurt resale. Simple and proven wins.
On the flip side, electric vehicles are currently among the worst performers for depreciation, losing an average of 57% of their value over five years, largely due to battery degradation concerns.
Got an Old Car That’s Lost Its Value?
If you’re driving something on the opposite end of the spectrum — a high-depreciation vehicle that’s now more trouble than it’s worth — consider turning it into fast cash instead. Cash for scrap cars services will buy your old vehicle regardless of its condition, often with free towing included. It’s one of the quickest ways to clear out a depreciating asset and put money toward a brand with better long-term value.
The Bottom Line
When buying a car, think beyond the monthly payment. The brands that consistently hold their value — Toyota, Lexus, Honda, Subaru, and Mazda — give you more financial flexibility when it’s time to move on. That’s money back in your pocket, not left in a dealership’s lot.