These Are The 2020 Vehicles Expected To Return The Highest Resale Values

As astute consumers know, the best way to save the most money buying a new vehicle isn’t necessarily to just choose a model having a lower sticker price. Rather, it’s critical to pick a ride that’s inherently cheaper to own. Depreciation is the most significant consideration, accounting for nearly 40 percent of all new-vehicle ownership costs. 

Choosing a model that holds onto its value tenaciously means you’ll have a larger down payment to make when it comes time to trade in the vehicle. And if you lease, rather that purchase a vehicle, picking one that best retains its worth usually translates into lower monthly payments, as they’re based on the difference between the model’s up-front price and what it will be worth at the end of the term.

Continuing a prolonged trend, sport-utility vehicles and pickup trucks are predicted to retain their original values better than the family sedans that have fast fallen out of favor among consumers. They account for all but one of the 10 top performers overall in Kelley Blue Book’s 2020 Best Resale Value Awards, based on anticipated depreciation after an initial five-year ownership period.

“Once again, this year’s Top 10 models are dominated by trucks, except for the all-new and much-hyped 2020 Chevrolet Corvette appearing on this year’s list,” says Eric Ibara, director of residual values for Kelley Blue Book. “Without the imminent prospect of significantly higher gas prices, the used-car demand for trucks continues to be an ongoing, multi-year trend, directly impacting new cars.”

Among brands, KBB cites Subaru as offering the models that consistently bring back the most cash at trade-in time. Sports-car builder Porsche earns its fourth consecutive Best Resale Values Award for 2020 in the luxury category.

The average new vehicle this year will hold onto around 37 percent of its original value after five years. That means a model that costs $40,000 today will be worth just $14,800 in 2025. All of the models that place among KBB’s top 10 return more than 50 percent after half a decade, with the top models in this regard predicted to hold onto around 60 percent of their initial worth. We’re featuring the 10 models that KBB says will enjoy the best resale values for 2020 below.

Though there isn’t a sedan in sight among the models that bring back the best resale values, some do perform better than others in this regard. The Subaru Impreza holds onto its value best among compact cars at 42.7 percent, with the automaker’s Legacy topping this year’s class of midsize cars at 37.9 percent. The Toyota Avalon is predicted to out-perform other large cars, expected to return 37.9 percent of its original value after five years.

Among luxury sedans, the top entry-level performer is the Lexus ES at an estimated 37.9 percent, while the Lexus GS leads all midsize sedans at 31.2 percent, and the Porsche Panamera takes the prize in the high-end category at 35.0 percent.

While electric-powered vehicles are known for having among the poorest resale values in the industry for a variety of reasons, the Tesla Model X crossover SUV out-performs the competition in this regard, expected to bring back a robust 44.0 percent of its initial worth after five years.

Predicting a given model’s resale value is, of course, an educated guess at best. Supply and demand greatly affect what a given model will be worth down the road, which is one reason why the wildly popular SUV and pickup truck categories are predicted to greatly out-pace slower-selling sedans in this regard. Deep dealer discounts and hefty automakers’ incentives deemed necessary to move the metal also adversely affect a vehicle’s future value.

Here are the 10 vehicles KBB predicts will retain the highest resale values, based as a percentage of their original sticker prices, after five years:

1. Chevrolet Corvette

Chevy redesigned the venerable ‘Vette as a breathtakingly styled mid-engine sports car that can run with the likes of Ferraris and Lamborghini’s for a fraction of the cost. Demand for the car is high, and Chevrolet can’t fill orders fast enough, a problem that was exacerbated by last year’s UAW strike against General Motors. It’s expected to bring back 54.9% of its original value after five years.

2. Chevrolet Silverado HD

The heavy haulers in Chevrolet’s line of full-size pickup trucks, the Silverado 2500HD and 3500HD bring back the most money at resale time. There’s a choice of gasoline or diesel-fueled V8 engines, with a maximum tow rating of 35,500 pounds that leads the competition. Expect a 60.1 percent return after five years.

3. Ford Ranger

Ford brought the midsize Ranger pickup back after a prolonged absence and it’s already predicted to perform admirably in terms of retained value after five years. It’s also capable in its own right and can be fitted with a long list of features. It should hold onto around 59 percent of its value after a half decade, based on KBB’s depreciation predictions.

4. GMC Sierra

Like its close relation at Chevrolet, the Silverado, the GMC Sierra is available in three cab configurations with multiple powertrains and tow ratings, along with a bevy of trim levels. The Denali models sit at the top of the line as lavish luxury trucks. It should bring back around 56 percent of its sticker price five years down the road.

5. Jeep Gladiator

New for 2020, the Jeep Gladiator is essentially a four-door Wrangler with a cargo bed grafted behind the rear seat. The only question here is what took the automaker so long to bring this boxy and practical model to market? Based on KBB’s depreciation estimates it should retain around 60 percent of its value after five years.

6. Jeep Wrangler 4-Door

With a long lineage that dates back to World War II, the Jeep Wrangler consistently lands among the models having the best resale values, with the 4-Door versions (previously named Wrangler Unlimited) leading the pack, keeping 57.6 percent of its initial value after five years. The two-door model is no slouch either, estimated to bring back 51.0 percent of its original value after five years.

7. Ram 1500

The Ram 1500 is a top choice among full-size pickups for its wide model line and its handsomely cast interior, which is second to none in this segment. As is the trend these days it can be outfitted as a basic work truck or a much more upscale hauler. Expect a return of around 54.8 percent of its sticker price after five years.

8. Toyota 4Runner

While car-based crossover SUVs are the biggest sellers these days, truck-based models like the Toyota 4Runner remain popular among those who need to tow a boat or trailer, or who like to venture off road. The 4Runner should retain a healthy 56.1 percent resale value after five years of ownership.

9. Toyota Tundra

The Toyota Tundra may not sell in as big numbers as its domestic-brand competitors, but that also means the resale market isn’t as flooded with late-model used versions, which helps prop up its worth at trade-in time. It’s offered in basic, luxury, and off-road ready configurations, and is estimated to keep 52.7 percent of its original value after five years.

10. Toyota Tacoma

The midsize Toyota Tacoma has long been a popular pickup for those having modest needs and on a budget, and it excels in particular when properly equipped as an off-road racer. KBB says it should bring back 60.6 percent of its value after the initial five years of ownership.

You can find the full list of Kelley Blue Book’s 2020 Best Resale Value Award winners by category here.