Car Depreciation: A Guide to the Best Value Cars in the Used Car Market

Indy Auto Man car dealer reveals which vehicles depreciate fast and will become the most beneficial buys in 2025.

INDIANAPOLIS, IN, UNITED STATES, April 9, 2025 /EINPresswire.com/ -- Car value has always been a weighted factor among the pros and cons of buying a particular auto at the secondary market. However, nowadays, it’s among the key decision-making arguments for savvy buyers amid new tariffs on imported vehicles. The Indy Auto Man dealership experts explain how to benefit from the fast depreciation of new cars and which models are worth buying in 2025 in Indiana.

The average 5-year depreciation for cars in 2025 is 45.6%, according to the iSeeCars recent study. This is more than in 2023 (38.8%) but less than in pre-pandemic 2019 (49.6%). However, there are significant differences between segments.

Electric vehicles have become leaders in depreciation, losing an average of 58.8% over 5 years. This is due to the rapid obsolescence of technology, falling prices for new electric cars, and limited demand for used models. Hybrids and pickups, on the other hand, are performing better on the used car market, losing only 40.7% and 40.4%, respectively. These segments benefit from strong demand and practicality.

Sports cars and compact SUVs are also holding up well, especially premium models like the Porsche 911 and mainstream bestsellers like the Toyota RAV4.

Luxury cars make up the bulk of the list of models with the highest depreciation.

Victor Figlin, Indy Auto Man‘s General Manager, emphasizes: “Depreciation remains the most upsetting aspect of investing in a new car. At the same time, used car buyers can benefit greatly from it if they choose wisely. Five-year-old autos are often in good to excellent condition, and their value has been significantly reduced. For example, pre-owned models like the Infiniti QX80 or Cadillac Escalade offer significant savings to those who can’t afford a new large luxury SUV. Moreover, after a five-year milestone, depreciation slows down, and reselling a used car after a couple of years of exploitation may turn out to be a great deal.”

However, IAM experts underline that sports cars, compact SUVs, pickups, and some sedans can still be expensive. For example, among SUVs, such bestsellers as the Toyota RAV4 (30.2% depreciation) and Honda CR-V (31.5%) retain their value well, and among pickups - the Toyota Tundra and Ford Ranger. However, in the same class, some models lose value catastrophically quickly. For instance, a five-year-old BMW X5 or X6 can be an excellent buy in the used car market.

Eugene Gorin, the co-founder of Indy Auto Man, notes: "Porsche sports coupes such as the 911 and 718 Cayman invariably take the lead in residual value. And the popularity of compact SUVs is explained by their practicality and high demand."

Therefore, buyers looking for the best bargains should pay attention to those models that lose their value fast, to receive the luxury brands and models on the secondary market without losing much. A used Jaguar I-Pace, BMW 7 Series and 5 Series, Tesla Model S, and INFINITI QX80 appear the best buys in 2025.

Although demand in the used car market has increased sharply due to a new 25 percent tax tariff on imported cars, Indiana car lots still manage to combine variety with affordability, offering something for every buyer at competitive prices. Experts agree that this demand may stimulate rate hikes, especially before the summer season, and recommend that those who plan a purchase not postpone the decision.

About Indy Auto Man
Indy Auto Man stands out as the premier used car dealership in Indiana and beyond, boasting over 15 years of exceptional customer service. With a steadfast dedication to innovative technologies, high-quality standards, and ensuring customer satisfaction, the dealership has garnered the trust of thousands. This commitment is reflected in its impressive collection of over 5,000 Google reviews, achieving an outstanding overall rating of 4.9. The dealer was also honored with a Consumer Satisfaction Award 2025 from Cars.com for excellent customer service in Indiana.

Victor Figlin
Indy Auto Man
+1 317-814-7520
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