If you’re looking at a Honda Accord, you’re probably thinking about its value over time. Do Honda Accords depreciate? The simple answer is yes, all cars do, but the Accord’s story is one of the best in the industry. It’s known for holding its value remarkably well, making it a smart choice for your wallet in the long run. Let’s look at exactly how its value changes, year by year.
Do Honda Accords Depreciate?
While the Honda Accord does lose value like any vehicle, its depreciation rate is famously slow. This isn’t an accident. It’s the direct result of the Accord’s decades-long reputation for reliability, low maintenance costs, and high demand on the used car market. People trust the Accord, and that trust translates directly into stronger resale prices. So, while you will see a drop in value, it’s far less severe than what many of its competitors experience.
The Honda Accord Depreciation Rate
On average, a Honda Accord depreciates about 40-45% over five years. This is significantly better than the automotive industry average, which can be 50% or more. Here’s a typical breakdown:
- Year 1: 20-25% depreciation (the steepest drop, common to all new cars).
- Year 2-3: An additional 10-15% loss.
- Year 4-5: Slows to about 5-10% per year.
- After 5 Years: The car retains about 55-60% of its original MSRP.
This rate can vary based on trim level, mileage, condition, and market trends, but it provides a reliable benchmark. For example, a hybrid model might hold value even better due to fuel efficiency demand.
The Honda Accord Depreciation Curve (Graph Explanation)
Imagine a graph with years on the bottom and percentage of value remaining on the side. The curve for the Honda Accord looks different from a typical car.
- Steep Initial Slope (0-12 months): The line drops quickly in the first year. This is the “drive-off-the-lot” hit.
- Moderate Decline (Years 1-3): The slope becomes less steep but continues downward steadily.
- Gentle Taper (Years 4-10): This is where the Accord shines. The curve flattens out considerably. Value drops very slowly because the car has proven its durability, and demand for used Accords remains high.
- Long, Flat “Tail”: Even after 10 years, a well-maintained Accord often has a respectable market value, creating a long, flat tail on the graph. Many cars curve would hit near-zero much faster.
This flatter curve after the initial years is the visual proof of the Accord’s strong value retention.
Honda Accord Depreciation Table (5-Year Example)
Let’s use a hypothetical example. Assume a new Accord sedan with an MSRP of $30,000. This table shows estimated value based on average depreciation.
| Year | Estimated Value | Value Lost That Year | Retained Value % |
|---|---|---|---|
| New (MSRP) | $30,000 | — | 100% |
| Year 1 | $23,000 | $7,000 | 77% |
| Year 2 | $20,200 | $2,800 | 67% |
| Year 3 | $18,000 | $2,200 | 60% |
| Year 4 | $16,500 | $1,500 | 55% |
| Year 5 | $15,500 | $1,000 | 52% |
Note: These are illustrative figures. Always check current market data from sources like Kelley Blue Book or Edmunds for precise valuations in your area.
Why Do Honda Accords Hold Their Value So Well?
Several key factors combine to make the Accord a depreciation champion.
1. Legendary Reliability and Durability
This is the biggest reason. Honda has built its brand on engineering cars that last. The Accord consistently tops reliability surveys from J.D. Power, Consumer Reports, and others. A car that is less likely to need major repairs is more valuable on the used market. People are willing to pay a premium for peace of mind.
2. Lower Cost of Ownership
Depreciation is just one part of a car’s cost. The Accord is also affordable to maintain, insure, and fuel. When buyers calculate total cost, a used Accord often comes out ahead. Its parts are plentiful and relatively inexpensive, and many mechanics are familiar with them.
3. Strong Brand Reputation and Demand
The Honda name carries immense weight. The Accord is often recommended as a safe, sensible, and smart choice. This creates consistent, high demand in the used market. High demand with limited supply (as people tend to keep their Accords) keeps prices firm.
4. High Safety Ratings
Modern Accords earn top marks from the IIHS and NHTSA. Safety is a major priority for families and individual buyers alike. A 5-star safety rating from several years ago is still a compelling selling point today.
5. Timeless Design and Function
Honda generally avoids overly radical styling that ages quickly. The Accord’s design is often conservative and functional, which appeals to a broad audience even as the car gets older. Its interior space and practicality remain assets.
How to Minimize Your Honda Accord’s Depreciation
While the Accord holds value well on its own, you can take steps to protect your investment even further.
- Keep Detailed Service Records: A full, documented service history proves you’ve cared for the car. This can add hundreds or even thousands to its resale value.
- Follow the Maintenance Schedule: Stick to Honda’s recommended maintenance in the owner’s manual. Timely oil changes, tire rotations, and fluid checks are crucial.
- Address Issues Promptly: Don’t ignore small problems. A minor sound or warning light can lead to bigger, more expensive issues that hurt the car’s value and your ability to sell it.
- Keep it Clean: Regular washing, waxing, and interior cleaning prevent long-term wear from dirt, UV rays, and stains. Consider professional detailing before you sell.
- Drive Moderately: High mileage is a major deprecation factor. If possible, avoid excessive driving. Also, gentle driving habits reduce wear on brakes, tires, and the engine.
- Avoid Modifications: Aftermarket wheels, loud exhausts, or non-factory stereo installations can actually lower your car’s value for the mainstream market. Keep it stock if resale is a priority.
- Protect from Damage: Use a garage or carport if you can. Parking away from other cars reduces risk of dings. Consider paint protection film for the front end.
When is the Best Time to Buy or Sell a Honda Accord?
Timing can affect the price you pay or receive.
- Buying New: The best time is often at the end of the model year (late summer/fall) when dealers are making room for incoming new models. You can also find good deals during holiday sales events.
- Buying Used (1-3 years old): This is the “sweet spot.” You let the first owner take the biggest depreciation hit, but you still get a nearly-new, reliable car with modern features.
- Selling Your Accord: Spring and early summer are typically strong selling seasons. Demand for used cars often rises. Have your car cleaned and your paperwork ready to capitalize on this.
Always check the local market, as regional factors can play a big role in pricing and availability for certain models.
Honda Accord vs. Competitor Depreciation
How does the Accord stack up against its rivals? Generally, very favorably.
- vs. Toyota Camry: It’s a very close race. The Camry also has stellar resale value. The difference between the two is often marginal, varying by specific year and region.
- vs. Nissan Altima: The Accord typically depreciates slower. The Altima, while a good car, hasn’t maintained the same resale strength in recent years.
- vs. Chevrolet Malibu / Ford Fusion: The Accord holds its value significantly better than these American sedans, which tend to depreciate at a faster rate.
- vs. Luxury Sedans (e.g., BMW 3 Series, Audi A4): Luxury cars almost always depreciate much faster due to higher maintenance costs and rapid model updates. An Accord will be worth a much higher percentage of its original price after 5 years.
FAQ: Honda Accord Depreciation
Do Honda Accords have good resale value?
Yes, absolutely. The Honda Accord is consistently ranked among the top non-truck vehicles for resale value. It’s one of its strongest selling points.
How much does a Honda Accord depreciate per year?
As shown in the table, it’s not a fixed amount. Year one sees the largest drop (20-25%). After that, it slows to roughly 10% in years 2-3, and then to 5-10% in years 4 and 5.
What Honda Accord holds its value the best?
Typically, higher trim levels (like the Touring) with desirable features and lower mileage hold value best. In recent years, hybrid models have also shown exceptional value retention due to high demand for fuel-efficient cars.
Is a used Honda Accord a good investment?
While a car is not an investment in the traditional sense (it’s a depreciating asset), a used Accord is one of the most financially sensible choices you can make. You get reliability and low costs for a reasonable upfront price.
Do older Honda Accords have value?
Yes, even older Accords in good running condition have a solid market. They are popular as first cars, commuter vehicles, and reliable transportation. A 10-year-old Accord with service records can still command a decent price compared to other brands.
Does color affect Honda Accord depreciation?
It can. Generally, common, neutral colors like white, black, silver, and gray have the broadest appeal and may resell easier. Very unusual colors might limit your pool of potential buyers, potentially affecting the final sale price.
In conclusion, while you asked “Do Honda Accords depreciate?”, the more important story is how slowly they do it. The Accord’s gentle depreciation curve and strong value retention table are testaments to its quality and market perception. By choosing an Accord, you’re selecting a vehicle designed to protect your financial outlay over time. Whether you buy new or used, understanding this depreciation pattern helps you make a smarter purchase and get the most value when it’s time to sell. Remember, the key to maximizing value is always proper maintenance and care throughout your ownership.