Prado & LandCruiser Resale Value [2025]

Quick Answer: Car Depreciation Rates in Australia 2025

How much does a car depreciate? On average, new cars in Australia lose:

• Year 1: 15-20% of purchase price
• Year 3: 35-45% total loss
• Year 5: 50-60% total loss

A $50,000 new car is typically worth $25,000-$30,000 after 5 years. But some cars hold value far better than others.

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Brisbane & SEQ quick take

Depreciation is where most people lose money on cars — especially in the first 1–3 years. If you want value in SEQ, target the “sweet spot” where the big drop has already happened but the car still has modern safety and warranty left.

Key Takeaways

• If value matters, aim for 2–4 years old with full service history.
• Use multiple valuation references (e.g. RedBook) and comparable listings before you negotiate.
• Popular, reliable models with strong demand tend to hold value best.
• If you’re torn between two options, see our guide: New vs used car.
• Want help buying smart? Start here: Brisbane car broker.

What Is Car Depreciation?

Depreciation is the decrease in your car's value over time. It's the single biggest cost of car ownership—often exceeding fuel, insurance, and servicing combined.

The moment you drive a new car off the lot, it loses value. This continues every year, though the rate slows after the first few years.

2025 Average Depreciation Rates by Year

Year	Depreciation That Year	Total Value Lost	Car Worth (% of New)
Year 1	15-20%	15-20%	80-85%
Year 2	10-15%	25-35%	65-75%
Year 3	8-12%	35-45%	55-65%
Year 4	6-10%	42-52%	48-58%
Year 5	5-8%	50-60%	40-50%

The Real Cost: Depreciation Examples

New Price	After 1 Year	After 3 Years	After 5 Years	Total Lost
$40,000	$33,600	$24,000	$18,000	$22,000
$50,000	$42,000	$30,000	$22,500	$27,500
$70,000	$58,800	$42,000	$31,500	$38,500
$100,000	$84,000	$60,000	$45,000	$55,000

That's $6,400-$11,000 lost in the first year alone—just for being the first owner.

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Which Cars Hold Their Value Best in Australia 2025?

Top 10 Cars That Hold Value (Lowest Depreciation)

Rank	Vehicle	5-Year Resale Value	Why It Holds Value
1	Toyota LandCruiser 300	70-80%	Legendary reliability, strong demand
2	Toyota HiLux	65-75%	Workhorse reputation, fleet demand
3	Suzuki Jimny	70-85%	Limited supply, cult following
4	Ford Ranger	60-70%	Popular ute, strong aftermarket
5	Toyota Prado	65-75%	Regional demand, towing capability
6	Isuzu D-MAX	60-70%	Reliability, low running costs
7	Toyota RAV4 Hybrid	60-68%	Fuel efficiency, Toyota badge
8	Mazda CX-5	55-65%	Reliability, mainstream appeal
9	Kia Carnival	55-62%	Family demand, value proposition
10	Tesla Model 3	55-65%	EV leader, software updates

Cars That Depreciate Fastest (Worst Value Retention)

Rank	Vehicle Type	5-Year Resale Value	Why It Depreciates Fast
1	Luxury European sedans (BMW 5 Series, Audi A6)	35-45%	High servicing costs, tech updates
2	Large American trucks (RAM 1500, Silverado)	40-50%	Limited Australian market, fuel costs
3	First-gen EVs (Nissan Leaf pre-2020)	25-35%	Battery degradation concerns, range
4	Heavily optioned luxury cars	35-45%	Options add cost, not resale value
5	Niche sports cars	40-55%	Limited buyer pool, high insurance
6	Unpopular colours (lime green, orange)	-5-10%	Smaller buyer pool

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Why Some Cars Hold Value Better

1. Brand Reputation

Toyota and Mazda dominate resale because buyers trust older models. Decades of reliability data means a 5-year-old Toyota is still considered a safe bet.

2. Running Costs

Cars with cheap parts and affordable servicing retain value. A BMW might cost $1,500 for a major service; a Toyota might cost $400. Buyers factor this in.

3. Supply vs Demand

When demand exceeds supply, prices stay firm:

• LandCruiser: 12+ month wait times keep used prices high
• Jimny: Production constraints create scarcity
• HiLux: Fleet buyers snap up used stock

4. Practical Appeal

SUVs, utes, and family cars have steady demand regardless of economic conditions. Sports cars and luxury sedans are discretionary purchases.

5. Fuel Efficiency

With fuel prices volatile, hybrids and efficient vehicles hold value better than V8s and performance models.

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The Smart Buyer's Strategy: Buy at the Sweet Spot

Why 2-3 Years Old Is the Sweet Spot

At this age, you get:

• ✅ Steepest depreciation already occurred (25-35% already lost)
• ✅ Often still has manufacturer warranty remaining
• ✅ Relatively low kilometres (30,000-50,000 km)
• ✅ Modern safety features (AEB, lane keep assist)
• ✅ Current styling (not "old" looking)
• ✅ Someone else paid the new-car premium

Real Example: Toyota Kluger

Option	Price	What You Get
New 2025 Kluger GXL	$72,000	0 km, full warranty, new car smell
2023 Kluger GXL (2 years old)	$55,000	35,000 km, warranty remaining, same features
Your Savings	$17,000	Same car, just 2 years newer-to-you

That $17,000 saved could buy 4+ years of fuel, insurance, and servicing.

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Queensland-Specific Depreciation Factors

South East Queensland Market Trends

Brisbane, Gold Coast & Sunshine Coast buyers pay premiums for:

• 4WDs and utes (beach access, towing boats/caravans)
• SUVs (family transport, school runs)
• Dual-cab utes (tradies, lifestyle buyers)

This means: If you're selling a 4WD or ute in SEQ, you'll get more than the national average. If you're buying one, expect to pay more.

Queensland Sun Damage

Queensland's UV levels are brutal on cars:

• Paint fade: Especially red and darker colours
• Interior cracking: Dashboards and leather deteriorate faster
• Rubber seals: Dry out and crack
• Headlight haze: Plastic oxidises quickly

Impact: A garaged, well-maintained car in Queensland can be worth 5-10% more than one that's lived outside.

Coastal vs Inland

Cars near the Gold Coast and Sunshine Coast face salt air corrosion:

• Undercarriage rust (especially older vehicles)
• Brake component deterioration
• Electrical connector corrosion

Smart buyers look for inland vehicles or garaged coastal cars.

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Electric Vehicle Depreciation in 2025

EVs are a special case with unique depreciation patterns:

Why Older EVs Depreciate Heavily

• Battery technology improves 10-15% annually
• New EVs offer more range at lower prices
• Battery degradation concerns (real or perceived)
• Charging infrastructure was limited for older models

EVs That Hold Value Well

EV Model	5-Year Retention	Why
Tesla Model 3	55-65%	Software updates, Supercharger network
Tesla Model Y	58-68%	High demand, practical size
BYD Atto 3	50-60%*	Value proposition, newer model
Hyundai Ioniq 5	50-60%*	Design, fast charging

*Estimated—these are newer models

The EV Depreciation Wildcard

With the FBT exemption on EVs (for vehicles under $91,387), many EVs are entering the market through novated leases. When these leases end, there may be a flood of 3-year-old EVs hitting the used market—potentially driving down prices.

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How to Minimise Your Car's Depreciation

When Buying

• ✅ Choose popular colours (white, silver, grey, black)
• ✅ Buy in-demand body styles (SUVs, utes)
• ✅ Avoid heavily optioned models (options rarely return value)
• ✅ Choose brands with strong resale (Toyota, Mazda, Kia)
• ✅ Consider capped-price servicing models

During Ownership

• ✅ Keep full service history (logbook stamps, receipts)
• ✅ Fix issues promptly (small problems become big ones)
• ✅ Protect from sun (garage, car cover, window tinting)
• ✅ Keep kilometres reasonable (under 15,000 km/year ideal)
• ✅ Don't modify (most mods reduce resale value)

When Selling

• ✅ Sell before major service milestones (100,000 km timing belt)
• ✅ Sell at the right time (SUVs in winter, convertibles in summer)
• ✅ Detail the car properly (professional detail = $300-500 well spent)
• ✅ Price realistically for quick sale (overpriced cars sit and look stale)
• ✅ Have service records ready (builds buyer confidence)

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Depreciation vs Total Cost of Ownership

When comparing cars, smart buyers look at total cost, not just purchase price:

Example: New vs 2-Year-Old Comparison

Option A: Buy New ($60,000)

Cost	Amount
Depreciation (5 years)	$33,000
Fuel	$12,000
Insurance	$7,500
Servicing	$4,000
Registration	$4,000
Total 5-Year Cost	$60,500

Option B: Buy 2-Year-Old ($42,000)

Cost	Amount
Depreciation (next 3 years)	$12,600
Fuel	$7,200
Insurance	$4,500
Servicing	$3,000
Registration	$2,400
Total 3-Year Cost	$29,700

Option B costs less than half—and you're only driving a car that's 2 years older at purchase.

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How We Factor Depreciation Into Our Service

At SEQ Car Brokers, depreciation is central to every recommendation:

1. We know which cars hold value in the Queensland market
2. We buy at the depreciation sweet spot (2-4 years old)
3. We factor future resale into vehicle recommendations
4. We help you sell at the right time to maximise return

Whether you're buying in Brisbane, the Gold Coast, or the Sunshine Coast, we'll help you make a financially smart decision.

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Frequently Asked Questions

How much does a new car depreciate in the first year?

New cars typically depreciate 15-20% in the first year in Australia. A $50,000 new car will be worth approximately $40,000-$42,500 after 12 months. This is the steepest depreciation period, which is why buying a 1-2 year old car offers significant savings.

Which cars hold their value best in Australia 2025?

Toyota LandCruiser, Toyota HiLux, Suzuki Jimny, Ford Ranger, and Toyota Prado consistently hold value best in Australia. These vehicles retain 60-80% of their value after 5 years due to strong demand, reliability reputation, and practical appeal.

How do I calculate my car's depreciation?

To estimate depreciation: Year 1 = 15-20% loss, Year 2 = additional 10-15%, Year 3 = additional 8-12%. For a $50,000 car: After Year 1 = ~$42,000, After Year 2 = ~$35,000, After Year 3 = ~$30,000. Use RedBook or CarsGuide for accurate current valuations.

What's the depreciation sweet spot for buying used?

For most buyers, the “sweet spot” is 2–4 years old: the steep first-year drop has already happened, but the car is usually still modern, safe, and easy to resell. This is the window we target when sourcing vehicles for Brisbane & SEQ clients.

Depreciation quick answers

Do electric cars depreciate faster than petrol cars?

Older EVs (pre-2020) depreciated faster due to battery concerns and rapid technology improvements. However, newer EVs like Tesla Model 3 and Model Y hold value comparably to petrol equivalents. The FBT exemption for EVs under $91,387 has increased EV demand in Australia.

Is it better to buy a new or used car financially?

Buying a 2-3 year old car is typically the best financial decision. You avoid the steepest depreciation (25-35% already lost), often still have warranty coverage, get modern safety features, and can save $10,000-$25,000+ compared to new. The only financial argument for new is if you plan to keep the car 10+ years.

What colour car holds value best?

White, silver, grey, and black cars consistently hold value best in Australia, with white being the top reseller. These neutral colours appeal to the widest buyer pool. Unusual colours like orange, lime green, or bright purple can reduce resale value by 5-10%.

How does Queensland weather affect car depreciation?

Queensland's harsh UV rays cause faster paint fade, interior cracking, and rubber seal deterioration. A garaged, well-maintained car in Queensland can be worth 5-10% more than one that's been parked outside. Coastal cars also face salt air corrosion concerns.

When is the best time to sell my car to minimise depreciation loss?

Sell before major service milestones (100,000 km timing belt service, 150,000 km transmission service) and before the new model year arrives. Spring and early summer are generally best for selling, as buyers have tax returns and are thinking about holiday road trips.

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Ready to buy smart? Contact us for honest advice on which cars make financial sense for your situation—and let us find it at the best price.