The average American’s budget is dominated by two factors: housing and transportation. Our homes and our cars are typically the biggest purchases we will ever make, yet they are vastly different experiences. Real estate is typically a long-term investment, one that buyers expect will pay off when they eventually sell. Few other products gain value over time, and vehicles typically aren’t considered appreciating assets unless you keep them long enough for them to become classic cars. In fact, a new car loses value as soon as you drive it off the lot, and many cars lose 20% of their original value in the first year alone.
Purchasing a new car involves a multitude of considerations, but buyers should always consider which types of vehicles depreciate faster and how well they hold their value over time. The Toyota RAV4 was the top-selling SUV of 2025, followed closely by the Honda CR-V. These compact SUVs both offer similar features, seat five passengers, and have generous cargo space, but one is a better long-term investment.
Perhaps unsurprisingly, the top-selling RAV4 depreciates more slowly than the CR-V, and is considered a better value. After three years, the RAV4 is still worth 94.5% of its original value, while the CR-V is worth 86.7%. At five years, the gap is slightly smaller: the Toyota is worth 75% of the price paid, compared to 71.1% for the CR-V. The average American keeps their vehicle for more than eight years, so let’s explore how this trend plays out in years seven and ten.
How to beat car depreciation
If you expect to keep your new vehicle for a decade or more, both the CR-V and the RAV4 offer comparable value. By year seven, the Toyota is still worth 62% of its original value, and owners can expect to receive about 45.8% of the price paid if they sell it after 10 years. By comparison, the CR-V is worth 58% at year seven, but holds almost the same value as the RAV4 at year ten, at 43.3%.
The 2026 RAV4, which is offered only as a hybrid, starts at $31,900. The CR-V, which is offered in traditional gas-powered and hybrid options, has a similar starting price of $30,920. Both vehicles are offered in at least six trims, and there’s less than $1,000 price difference between the top-tier models, which are both priced above $42,500. Both vehicles have a three-year/36,000-mile basic warranty and comparable features, though the RAV4 offers more horsepower and better fuel efficiency.
Of course, these depreciation numbers are only estimates, and many factors can affect the value of your car. Kelley Blue Book’s top recommendation for minimizing depreciation is not only to keep up with your vehicle’s maintenance but also to meticulously record all services and upkeep. If you plan to sell soon, try to keep your mileage down. Avoid aftermarket customization, and think carefully about what options you add to the vehicle when you buy it. Electronics tend to depreciate quickly, but add-ons like a sunroof and heated seats can increase your car’s value.
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