It’s no secret that new cars depreciate. Obviously, any buyer shopping for good cars under $25,000 will have given this some thought. According to a recent study released by iSeeCars, these four good cars under $25,000 also have the best resale value.
iSeeCars reviewed data for vehicles with average new car prices under $25,000. Using the collected data, depreciation percentages over five years show how much these models hold their value. These four models are great for those that want a vehicle under the $25 grand price point, but also want to get maximum value when they sell it later on.
The Honda Fit
However, the Honda Fit was discontinued in the U.S. after the 2020 model year. It’s still possible to find a new 2020 Honda Fit, but we won’t get the new generation go this well-loved hatch in the states.
Car and Driver appreciates this car, even placing it on its 10Best list. That said, sales dropped 19% while the Honda HR-V sold nearly 100,000 units. Honda plans to place more resources into HR-V production in the absence of the Honda Fit. Still, if you want resale value a 2020 Honda Fit has the best compared to cars under $25,000.
The Honda Civic
If you ask someone to name a car in the budget range that has good resale value, there’s a good chance the Honda Civic will be named. This is a car known for longevity and reliability. A new generation was revealed this year and there’s no end in sight for this popular Honda model.
A 2021 Honda Civic starts at $21,250––according to Honda’s website. In terms of resale value, iSeeCars shows a five-year depreciation rate of 43.6%. While this may not seem all that great, the average depreciation rate for all cars is 49.1%.
So for cars under $25,000 with good resale value the Honda Civic is in the top two. It’s not even that surprising that the top two practically priced cars with low depreciation rates are from Honda. Just like the next car on our list is also unsurprising.
The Toyota Corolla
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This is another one that would probably come up in conversation. Toyota models in general tend to hold value. Toyota trucks like the Toyota Tacoma and Toyota 4Runner are on the list for best resale value as well.
The Toyota Corolla is one of those cars that comes in under $25,000 and holds its value. This is another point A to Point B commuter car, but Toyota has made it more exciting recently as I learned when reviewing the 2021 Corolla.
The 2021 Corolla is priced starting at $20,025 according to Toyota. The base model comes equipped with Toyota’s full safety suite. The Toyota Corolla is a popular model when it comes to cars under $25,000.
The Kia Soul
This little Kia model has taken the world by storm. Some call it a subcompact SUV, some call it a hatchback, others just call it a car. The 2021 Kia Soul is another model that falls into the price category below $20 grand.
According to Kia, the 2021 Kia Soul starts at $17,590. This model is number four in terms of good cars under $25,000 with the best resale value. This Kia, which the manufacturer does place in the crossover/SUV category, appeals across a wide range of buyers.
It offers a roomy interior and generous cargo. It’s also been called a “fun” vehicle, by many critics. The 2021 Kia Soul has plenty of personality, which may attribute to its slower-than-most rate of depreciation.
Good cars under $25,000
For those with a practical budget, there are new models out there that offer more for the money than others. While most new car pricing crests $30 grand these days, there are good cars under $25,000. The car bought for $25 grand or lower will likely come more stock than an expensive range-topper.
However, there are many drivers that need a vehicle merely to get from point A to point B. These shoppers are looking for something reliable. Throw in good resale value and that’s an additional plus side. According to the iSeeCars study, Honda dominates the budget category in terms of lower depreciation rates.