Do Hondas Hold Their Value? What To Know About Resale & Depreciation
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Honda vehicles have a well-established reputation for retaining their value over time, making them the go-to option for buyers seeking long-term reliability and cost-effectiveness. This is especially notable in a market where most cars experience significant depreciation after purchase. Honda’s success in preserving resale value is not coincidental but rather a result of various factors, including consistent quality, a strong brand reputation, and recognition within the industry.
Models like the Civic, CR-V, and Accord are often highlighted for exceptional value retention, outperforming competitors in their respective segments. As such, when it comes to purchasing a Honda vehicle, a key consideration for many buyers is the question: “Do Hondas hold their value?”
This post aims to explore Honda’s resale value and retention within the used car market. Plus, we’ll walk you through the best and worst Honda models in terms of resale value. Let’s take a look.
Do Hondas Hold Their Value?
MotorTrend says that Honda vehicles aren’t as susceptible to depreciation as other brands. With an overall 52.5% value retention, Honda is one of the best brands for vehicle resale value. It’s not surprising, considering models like the Civic, Accord, Odyssey, or Pilot are some of the top vehicles when it comes to resale value.
In addition, CarEdge also made a handy breakdown of Honda’s depreciation results. By analyzing the 5-year depreciation rate of Honda vehicles from 2017 to 2021. Here’s the breakdown:
- 2017 Model: As of 2021, a 2017 Honda model has depreciated by 22.83%, retaining 77.17% of its value.
- 2018 Model: A 2018 model has depreciated by 16.40%, with 83.60% of its value remaining.
- 2019 Model: The 2019 model shows a depreciation of 13.79%, retaining 86.21% of its value.
- 2020 Model: For the 2020 model, the depreciation is 11.22%, leaving 88.78% of its value.
- 2021 Model: The 2021 model has the least depreciation at 9.11%, retaining 90.89% of its original value.
According to CarEdge’s data, Honda cars have a slow depreciation rate over five years. The value retention is strong, especially in the newer models (2020 and 2021), which retain more than 88% of their value in the first year.
So, do Hondas hold their value? The answer is absolutely!
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Honda Used Car Market Trends (Powered by CoPilot’s Price Pulse Tool)
To determine Honda’s trend performance in the used car market, we leveraged our handy Copilot Price Pulse Tool to gain valuable insights. Here’s our quick breakdown:
- Current Price Premium: Hondas are selling at a 29% higher price than initially forecasted, demonstrating exceptional value retention in the used car market. The data indicates that Honda vehicles retain value and appreciation over time, significantly increasing their resale worth beyond initial projections.
- Average Price Trends: On average, Honda cars are now selling for about $23,623, which is quite a bit higher than the earlier expected price of $18,306. This tidbit of information shows that Honda cars are generally more valuable in the market than initially thought.
- Short-Term Price Stability: The prices of Honda cars haven’t changed much within the last 30 days. This means their prices have been stable recently, showing that the market for these cars is pretty steady.
- Medium-Term Price Trend: In the past three months, the prices of Honda cars have increased just a little by 1%. This slight rise in prices over time suggests that the value of Honda cars in the market is slowly but surely increasing.
- Comparison to Peak Prices: Honda cars reached their highest price on September 1, 2022, at $26,312. But since that high point, their price has dropped by $2,689. This decrease might mean the prices adjust or settle down after that peak.
Based on what we’ve seen, Honda cars have had a significant rise in their market value. This suggests they keep their value well and could be a good choice if you’re thinking about resale value in the future.
Which Honda Cars Have the Best and Worst Resale Value?
While Honda is known for its excellent resale value, not all models are created equal. By analyzing more than 3 million vehicles, iSeeCars have ranked Honda’s lineup based on their 5-year resale value. Here’s how it went down:
Best Resale Value
- Honda Ridgeline (76.4% 5-year value retention): The Honda Ridgeline’s higher resale value is due to its unique blend of pickup truck utility and SUV-like comfort, innovative features, and Honda’s reputation for reliability and quality.
- Honda Fit (70.2% 5-year value retention): This compact hatchback stands out for its exceptional space efficiency, versatile interior, and top-notch fuel economy. The Fit’s high resale value is likely due to its reputation for reliability and low maintenance costs. Plus, it’s now a discontinued model.
- Honda Civic (69.6% 5-year value retention): A staple in the compact car market, the Civic is prized for its balance of efficiency, reliability, and performance. Its substantial resale value reflects its enduring popularity and reputation as a well-rounded vehicle.
HOW LONG DO HONDAS LAST?
We’ll discuss how long Hondas last on average, compare that with other vehicles and identify the models that perform best and worst in terms of durability and how long they’re usable.
Worst Resale Value
- Honda Clarity Electric (46.2% value retention): As an electric vehicle, the Clarity Electric may depreciate faster than traditional gasoline vehicles due to rapid advancements in EV technology and infrastructure.
- Honda Accord Hybrid (54.2% value retention): Although the Accord Hybrid offers excellent fuel efficiency and Honda’s renowned reliability, it competes in a segment where hybrids are expected, which may facilitate a faster depreciation rate.
- Honda Clarity Plug-In Hybrid (54.3% value retention): Similar to the Clarity Electric, the Plug-In Hybrid variant faces challenges posed by evolving electric and hybrid vehicle technology, which can impact its long-term value.
Do Hondas hold their value? Honda is known for its high resale value and retention. However, some models have retained their value better than others, as demonstrated by the breakdown above.
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