Subaru: Which Model Hold the Most Value?

Subaru is the automobile manufacturing division of the Japanese conglomerate Subaru Cooperation. Its first car named Subaru 360 was launched in 1958. In terms of production, Subaru is the world’s 21st largest automaker and has a 4% share in the U.S automobile market.

In this article, you will get to know do Subarus hold their value and the depreciation trend of 8 popular Subaru models.

I will also advise you on how to decrease your car’s depreciation and the best Subaru model to buy to save the maximum amount of money.

Do Subarus Hold Their Value?

When it comes to value retention, Subaru emerges as a clear winner among all other car brands and holds its value best after 3, 5, 7, and 10 years of ownership. Subaru holds 60% of its value after 5 years of operation whereas an average car holds around 45-50% of its value during the same time period.

Subaru also earned four individual segment honors during the Kelly Blue Book’s 2021 Best Resale Value Awards.

The below graph shows the average depreciation of Subaru cars over the 12 years. After one year of operation, it only loses 17% of its value, while an average car will lose around one-fourth of its original value during its first year of operation.

While the following illustration shows the year-to-year depreciation percentage of Subaru cars. On average Subaru cars depreciate the most in the first year and for the rest of the lifespan, they depreciate from 4% to 7%, which is pretty consistent.

Now let’s have a look at the depreciation trends of 8 popular Subaru models over the period of 10 years.

1. Subaru Ascent

Subaru Ascent is a three-row SUV with a passenger volume of up to 153 cubic feet. It is the largest car produced by Subaru and has a towing capacity of up to 5,000 pounds. It is a replacement model for Subaru Tribeca and when it comes to safety it is currently holding the spot for the 2020 IIHS Top Safety Pick.

Initial Selling Price: $41,073

Percentage Depreciation after 5 Years: 41%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$6,21484.87%$34,859
2$8,81078.55%$32,263
3$11,87471.09%$29,199
4$13,55467.00%$27,519
5$16,95158.73%$24,122
6$19,50652.51%$21,567
7$22,98044.05%$18,093
8$24,82939.55%$16,244
9$26,85434.62%$14,219
10$29,31428.63%$11,759

Also read: 3 Subaru Engines to Avoid (They Will Ruin You)

2. Subaru BRZ

Jointly developed by Toyota and Subaru, it is a 2+2 sports car and has a horsepower of up to 228. The same model is marketed by Toyota as GT86 or simply 86. It features Subaru’s trademark boxer engine, and its modified version also competes in the Super GT series.

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Initial Selling Price: $32,945

Percentage Depreciation after 5 Years: 38%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$5,86182.21%$27,084
2$7,30477.83%$25,641
3$8,40474.49%$24,541
4$11,63664.68%$21,309
5$12,39162.39%$20,554
6$14,87854.84%$18,067
7$15,19853.87%$17,747
8$17,23047.70%$15,715
9$18,40944.12%$14,536
10$19,49940.81%$13,446

3. Subaru Crosstrek

Also known as Subaru XV, it is a compact SUV and comes with a standard symmetrical all-wheel drive. With its sports-inspired styling, it has a thrilling power and a comfortable and modern interior. It also features advanced safety technology called “standard eyesight driver assist” which automatically detects objects in front of you and reduces power from the engine.

Initial Selling Price: $28,824

Percentage Depreciation after 5 Years: 38%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$5,21481.91%$23,610
2$7,59273.66%$21,232
3$8,46870.62%$20,356
4$8,79469.49%$20,030
5$11,01461.79%$17,810
6$12,54456.48%$16,280
7$14,44949.87%$14,375
8$15,99244.52%$12,832
9$18,84534.62%$9,979
10$20,57228.63%$8,252

Also read: 6 Best Subaru’s with a Panoramic Sunroof (+Photos)

4. Subaru Forester

Like most other Subaru models, Forester is also fitted with standard all-wheel drive and competes with Honda CR-V and Toyota RAV4. With decent handling and off-road ability, Subaru Forester has good mileage but its engine feels weak at times.

Initial Selling Price: $29,674

Percentage Depreciation after 5 Years: 40%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$4,32685.42%$25,348
2$5,51981.40%$24,155
3$8,17272.46%$21,502
4$10,71863.88%$18,956
5$11,97659.64%$17,698
6$15,31248.40%$14,362
7$17,70940.32%$11,965
8$18,06039.14%$11,614
9$18,93236.20%$10,742
10$20,95629.38%$8,718

5. Subaru Impreza

Originally introduced in 1992 to replace Leone, Subaru Impreza is a compact car that comes with an engine capacity of 1.5 to 2.5 liters. It has many advanced safety features and offers a manual transmission for drivers that like to have control in their own hands.

Initial Selling Price: $23,651

Percentage Depreciation after 5 Years: 35%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$3,70684.33%$19,945
2$5,03578.71%$18,616
3$6,22073.70%$17,431
4$7,47868.38%$16,173
5$8,31364.85%$15,338
6$10,08257.37%$13,569
7$11,82150.02%$11,830
8$12,68246.38%$10,969
9$13,90241.22%$9,749
10$15,24335.55%$8,408

6. Subaru Legacy

Also known as Subaru Liberty (in Australia) and Subaru B4 (in Israel) it is the flagship car of Subaru Company. It falls within the midsize car category and has a spacious cabin and upscale interior. Its major rivals are Honda Accord, Hyundai Sonata, and Kia K5.

Initial Selling Price: $32,378

Percentage Depreciation after 5 Years: 45%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$6,64779.47%$25,731
2$7,68076.28%$24,698
3$10,50367.56%$21,875
4$12,47261.48%$19,906
5$14,41155.49%$17,967
6$17,63045.55%$14,748
7$19,87738.61%$12,501
8$22,04331.92%$10,335
9$24,04125.75%$8,337
10$24,28325.00%$8,095

Also read: Mazda vs. Subaru (Depreciation Compared!)

7. Subaru Outback

Subaru Outback falls within the station wagon vehicle category and has excellent off-road abilities. With easy loading on the roof and cargo area, it comes with an optional turbocharged engine that provides plenty of power.

Initial Selling Price: $34,953

Percentage Depreciation after 5 Years: 45%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$4,45087.27%$30,503
2$6,78880.58%$28,165
3$10,41970.19%$24,534
4$11,31167.64%$23,642
5$15,80954.77%$19,144
6$16,55052.65%$18,403
7$20,29041.95%$14,663
8$22,72334.99%$12,230
9$23,40533.04%$11,548
10$25,20827.88%$9,745

Also read: Are Subarus Reliable? Which Subarus aren’t?

8. Subaru WRX

Created in 1992 for World Rally Championship, Subaru WRX was originally based on the Impreza model but separated from it in 2014. It has premium ride quality and comes with plenty of safety features.

Initial Selling Price: $36,495

Percentage Depreciation after 5 Years: 40%

10-Year Depreciation Projection:

Vehicle AgeDepreciationResidual ValueVehicle Worth
1$6,60681.90%$29,889
2$8,21577.49%$28,280
3$10,71970.63%$25,776
4$12,79964.93%$23,696
5$14,53660.17%$21,959
6$17,71551.46%$18,780
7$20,32044.32%$16,175
8$22,20739.15%$14,288
9$24,27333.49%$12,222
10$25,44830.27%$11,047

Why Do Subarus Hold Their Value so Well?

Excellent quality, high demand, safety features, and impressive accolades are the main factors behind the exceptional value retention of Subaru cars.

  • Subaru cars have comparatively high demand, and 96% of vehicles sold by Subaru in the last 10 years are still on the roads. People who buy Subaru often hold it for a long time and as a result supply of used Subarus is limited in the market.
  • Subaru is one of the safest car brands in the automobile sector and has earned the trust of its drivers with multiple safety features like an eyesight safety system, adaptive cruise control, and lane keep assist.
  • Subaru has impressive accolades to its name, and it took top prizes in KBB best resale value rewards in 2020 and 2021. The award is given to the cars which best retain their value in the first five years of their operation.
  • Subaru cars have relatively low maintenance costs and better fuel economy. These factors further help Subarus retain its value.

Why Do Subarus Lose Value Fast in the First Year?

Subaru has the best value retention than any other car brand in the first year. On average, Subaru cars lose 17% of their value after one year whereas cars from other brands lose around 30% of their value after one year of operation.

It’s a rule of thumb for every automobile to lose most of its value in the first year of its operation, and the main reason is the low demand for a one-year-old car model. Also, nowadays automakers launch new model cars after every year which automatically drops the value of the previous model.

Which Subarus to Buy, When to Buy it, and When to Sell it to Save as Much as Possible?

To save the maximum amount of money you should either buy three years old Subaru Legacy or two years old Subaru Impreza.

Three years old Subaru Legacy will cost you around $21,875 which amounts to only 68% of the original cost and it will have 76% of useful life still remaining. You should sell it before the sixth year because in that year it loses 10% of its value, which is highest after the first year.

Another great option will be buying two year old Subaru Impreza. It will cost you $18,600 which amounts to 78% of the initial cost and it will have 84% of useful life still remaining.

Also read: 3 Subaru Engines to Avoid (They Will Ruin You)

What Can You Do to Decrease Any Subaru Depreciation?

The depreciation rate of Subaru cars can be decreased by following below-mentioned guidelines:

  • Avoid buying a new Subaru because it depreciates the most in the first year.
  • Keep your Subaru in good condition and never miss the regular maintenance of your car.
  • Try to buy a used Subaru with low mileage because the more mileage the car has the less it will be worth.
  • Maintain the full-service history of your Subaru car as it’s a great way to reassure your buyer that the car has been well maintained.

Does Subaru Hold its Value Well When Compared to Other Similar Car Brands?

Subaru is the safest choice among all other car brands because its value retention over any time period is exceptional. It outperforms famous car brands like Toyota, Honda, Mazda, and Chevrolet.

For example, you can check out Mazda depreciation in this article.

Subaru cars are known for their reliability and performance. They are also less expensive, to begin with, also the existing users of Subaru are loyal customers of the brand and don’t easily sell their vehicles.

Limited supply and excellent word of mouth keep Subaru cars high in demand and therefore they hold their value for a long time

References:

caredge.com, en.wikipedia.org, quora.com, carsalesbase.com, themoneycalculator.com, garagedreams.net, autotribute.com, subaru.com, caranddriver.com