Toyota hybrids dominate the depreciation list for 2025
Depreciation is a very real, very expensive part of new car ownership. Depending on what type of new car you buy, you could be looking at a loss of over half of its original value in the first five years of ownership. Hybrids, for instance, made up the segment with the second-lowest overall depreciation rate, just behind pickup trucks. And Toyota dominated the hybrid segment with all of the top spots.
Toyota hybrids captured the top six spots in the segment for low depreciation, followed by a close sibling
This year, hybrids smashed the depreciation game, with some of the best average resale values in the industry. According to a recent iSeeCars study, the Toyota RAV4 Hybrid took the top spot among depreciation-resistant hybrid vehicles, losing around 31.2% of its original value in the first five years of ownership.
That might sound like a lot, but it’s enough to put the best-selling RAV4 Hybrid ahead of its smaller siblings, the Prius, Prius Prime, and Corolla Hybrid. It’s also enough to put the RAV4 Hybrid in the No. 13 spot overall for popular vehicles with the lowest depreciation rates. Toyota’s hybridized Highlander SUV and now exclusively hybrid Camry round out the top six, just ahead of the Lexus UX 250h, a Corolla sibling. You can read my review of the 2025 Toyota Camry here.
| Hybrid make and model | Average 5-year depreciation | Average difference from MSRP |
|---|---|---|
| Toyota RAV4 Hybrid | 31.2% | $10,062 |
| Toyota Prius | 34.9% | $9,908 |
| Toyota Corolla Hybrid | 35.6% | $8,471 |
| Toyota Prius Prime | 36.0% | $11,865 |
| Toyota Highlander Hybrid | 39.8% | $18,432 |
| Toyota Camry Hybrid | 39.8% | $11,486 |
| Lexus UX 250h | 39.8% | $14,156 |
| Hybrid segment average | 40.7% | $14,156 |
| Industry average | 45.6% | $17,395 |
“Proving that not all alternative fuel vehicles lose money, hybrids sit at the opposite end of the residual value spectrum compared to electric vehicles,” said Karl Brauer, iSeeCars Executive Analyst. “These models offer increased fuel efficiency and zero range anxiety, with more consumers hopping on the hybrid bandwagon every day while helping them hold their value.”
A simple comparison confirms that much. The average five-year depreciation for the hybrid segment sits at 40.7%, nearly 5.0% less than the industry average. EVs, on the other hand, are good for an average 58.8% depreciation rate over a half-decade. Battery electric vehicles, like the Tesla Model S and Jaguar I-PACE, shed value faster than any other vehicle segment on the market.
