In general, pickup trucks and SUVs hold their resale value better. That much is shown in the findings from the latest study from iSeeCars. It ranked the vehicles with the highest and lowest depreciation rates, and GM vehicles weren’t excluded from either list.
The study looked at the five-year average of depreciation for 4.3 million new and used car sales to compile its findings and GM nabbed two spots on the lowest depreciation list. The Chevrolet Silverado 1500 placed seventh, while the GMC Sierra 1500 placed eighth. The average vehicle loses 50.2 percent of its initial value over five years; GM’s pickup trucks lose on average 39.7 and 39.9 percent, respectively.
Both the Chevrolet Silverado 1500 and GMC Sierra 1500 are above average when it comes to depreciation. The trucks fall under the average depreciation loss of 41.3 percent.
The vehicle with the lowest depreciation rate? The Jeep Wrangler Unlimited, which on average lost just 27.3 percent of its original value over five years.
GM vehicle also claimed two spots on the list for vehicles with the highest rate of depreciation. In second place sits the Chevrolet Volt, which loses a whopping 71.2 percent of its original value over five years. In tenth place, and rounding out the top ten, is the Chevrolet Impala.
Electric cars and plug-in hybrids continue to erase value over years, partially due to government incentives. The Nissan Leaf ranked first place with 71.7 percent of its value wiped away over five years. The situation also makes the cars absolute bargains on used car lots.
“Government incentives play a role in the steep depreciation of electric and plug-in hybrid vehicles as their resale value is based on their lower effective post-incentive sticker price,” said Ly. “Since the technology of EVs changes at a rapid pace, outdated technology also contributes to their dramatic depreciation as well as range anxiety and lack of public charging infrastructure.”
The Chevrolet Impala’s placing comes from its oversupply of inventory as the sedan is often purchased for rental fleets. The car’s redesign for 2014 also drastically lowers demand for 2013 models.
Looking exclusively at SUVs, the Cadillac Escalade ESV, GMC Yukon XL and Cadillac Escalade all place on the highest depreciation rate list. The average rate for SUV depreciation sits at 51.9 percent over five years; the Escalade ESV loses 62.9 percent of its value on average, the Yukon XL loses 61.3 percent and the regular Escalade loses 59.7 percent.