The cars that depreciate the most and the least in the Bay Area

Note: See the gallery for the cars in the San Francisco-Oakland-San Jose metro area that depreciate the most and the least.

For many car owners, when a car turns 5 years old, it’s time to find a new ride.

How much they get via trade-in or sale for that car depends on the mileage and condition, of course, but also on how well that model holds it value.

For example, the BMW 5 Series is an excellent midsize luxury automobile, rated No. 1 in its class by U.S. News & World Report. But if you bought this model new five years ago, it would now be worth less than one-third of its original value. On the other hand, a 5-year-old Porsche 911 coupe might fetch about two-thirds of its original purchase price.

Those depreciation figures come from the automotive research firm and car search engine iSeeCars.com, which analyzed more than 7.7 million new and used car sales to identify the models that depreciate the least and most after five years.

The analysis found that on the whole, electric vehicles and luxury vehicles suffer the most depreciation over five years. Because luxury vehicles carry such lofty prices when purchased new, the used price must fall dramatically to attract used car buyers.

Electric cars’ value declines steeply over five years for several reasons:

—Government incentives. Resale value is based on the lower post-incentive sticker price.
—Outdated technology, for example, an improved battery.
—Range anxiety, the fear that your battery will be inadequate for the distance of your trip.

The buyer’s market for 5-year-old EV or EV/hybrids presents an opportunity for bargain hunters. A lightly used Chevy Volt, for example, might sell for tens of thousands of dollars less than its price new.

The best vehicles for retaining their value, according to iSeeCars, were Toyota trucks and Jeep Wranglers. The trucks are no surprise — Toyotas have long been highly regarded for their dependability.

But Jeeps haven’t. And yet no vehicle wards off depreciation better than the Wrangler.

The red flags are numerous. The five-year-old 2015 Wrangler was rated by J.D. Power and Associates 29th out of 33 brands in dependability. Consumer Reports put the 2014 model (four recalls) at the top of its “worst value list.”

The stiff suspension, big wheels and high profile make for a harsh, herky-jerky ride, which is fine on a boulder field but not so great for a trip to the Safeway. Handling is clumsy. It can be very noisy on the freeway. Safety ratings haven’t been kind.

But people don’t care. Something about the Wrangler — the rugged descendant of the World War II Willy’s-Overland Jeep that can go anywhere —  captures the imagination.

Mike Moffitt is an SFGATE Digital Reporter. Email: [email protected]. Twitter: @Mike_at_SFGate