Dodge Is One Of The Worst Brands For Depreciation And Resale Value: Here's Why That Might Be

Cars are usually not investments and often considered depreciating assets, unless they're a McLaren F1 or an ultra-rare collector's car. However, not all cars lose value at the same pace: Some brands retain value better than others. Toyota, Ford (especially its trucks), and Honda are some of the car brands known for holding their value strongly compared to most automakers.

Dodge is one brand where depreciation occurs at a rapid rate. According to CarEdge, an average Dodge car retains only 35% of its value over a five-year ownership period. Interestingly, RAM (Dodge's truck-based subsidiary) doesn't face the same depreciation and is one of the lowest-depreciating car brands, just behind Toyota. This also shows that trucks retain their value much better compared to cars, at least in the U.S. market.

Certain luxury brands also tend to lose value more quickly than mainstream carmakers. Dodge still fares slightly better when compared to luxury brands like Maserati and Alfa Romeo: Each sell a limited number of cars every year and are known for having even worse resale value within a five-year ownership period, holding only 28% and 33.5% value, respectively. Currently, the Jaguar I-Pace has the worst resale value of any car. At the same time, mainstream luxury brands like Mercedes-Benz hold about 48.6% value, while BMW holds around 50.7% of its value.

Several factors are at play when it comes to car depreciation. The first is related to the brand and model: According to Consumer Reports, Dodge ranked near the bottom alongside Jeep and Chrysler, receiving very low scores for reliability in five to 10-year-old used car models. Faulty electronics and engine blow-out are the number one issues, among others, plaguing the Dodge brand. Lack of reliability drives customers away, decreasing both demand and resale value. Furthermore, Dodge cars are famously known for having inferior build quality, especially in the interior; cracked dashboards and broken plastic bits are very common.

Moreover, among mainstream car brands, Dodge and its sister companies, Chrysler and Ram, are known for their high maintenance costs, ranking lower than most of their rivals in long-term ownership expenses and affordability. According to CarEdge, on average, maintaining a Dodge costs around $3,600 over five years, which rises to $11,352 over 10 years; more than twice the cost of maintaining an average Toyota.

Another factor driving down Dodge car prices is their sporty muscle car image. People, especially insurance companies, often view Dodge cars and their owners as those who engage in high-spirited driving due to the cars' enthusiastic nature. This perception drives up insurance costs, making the cars less appealing to used buyers. These factors add up and make Dodge one of the worst-performing brands in terms of used car sales. Some of the most depreciating Dodge models include the Dodge Hornet, Charger, and Durango.