Find the depreciation rate of your Honda Civic in the graph below.
Every vehicle begins to depreciate, or lose value, the moment you purchase it, and the Honda Civic is no exception. The most depreciation will occur in the first year after purchase. Following the initial drop in value, the Civic will depreciate at a slower rate each year until it reaches the eight-year mark. Vehicles depreciate at different rates depending on the make and model. Knowing the depreciation rate of a specific vehicle, such as the Civic, can help you understand its overall value and total cost of ownership before you purchase it.
Keep in mind that just because the vehicle costs the least to own in the sweet spot we have outlined here, you still may not want to own the vehicle during these depreciation sweet spot years. Although vehicles depreciate less as they get older, they have more repairs. Duh right? However, keep in mind that repairs don’t just cost you money, they cost you time. Reliability is the difference between being able to make it to your destination on time or missing an opportunity because the car broke down.
Check out our article on the best and worst years of the Honda Civic to see our reliability ratings for all years of the Civic between 2001-2022. We also cover MPG, safety ratings, and a number of other factors. We pulled data from Civics registered in our app and surveyed owners to get you data-backed answers on just how good or bad each year of the Civic is.
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Honda Civic Depreciation
|Model Years||Mileage||Amount Depreciated||Residual Value Percentage||Resale Value|
The chart above shows the approximate depreciation for a Honda Civic. It’s based on Kelley Blue Book data since 2001, assuming a vehicle in standard trim, a generic color such as black or white, and a mileage of 12,000 per year.
Keep in mind that the auto market was heavily affected in 2020 and beyond. Automakers selling new cars during the COVID pandemic raised prices which caused a spike in demand in the used car market as people tried to save money. Many automakers, however, did not drop prices after the pandemic, they kept them so they could make a larger profit.
This is why the most recent years of many vehicles have seemingly experienced less depreciation. Some may have even appreciated due to the heightened levels of inflation created.
Factors That Impact the Honda Civic Depreciation Rate
Over its 75-year history, Honda has built a reputation for producing high-quality vehicles that last for many years. Compared to other brands on the market, Honda consistently achieves high marks for the safety and reliability of its vehicles. For this reason, Honda vehicles often hold their value better over time than other car brands. Besides the automaker’s reputation, here are some other factors that may affect the depreciation rate and resale value of your Honda Civic.
A Civic’s model year denotes the vehicle’s generation, including its features and pricing. It might seem obvious, but the older the model year, the less value a car usually has. That’s because an older model generally shows more wear and tear than newer models.
In addition, outgoing model years usually depreciate quickly once a new generation arrives on the market. Most automakers, including Honda, release new models of their vehicles each year. Each model year has different features and options that can affect its depreciation rate. Some model years may have better technology or safety features than others, which can boost the resale value.
The body type of a vehicle refers to its size, shape, and design. Some common body types include sedans, coupes, hatchbacks, convertibles, station wagons, sport utility vehicles, minivans, and pickup trucks. Typically, SUVs and pickup trucks have the slowest rates of depreciation since there’s usually a high demand for these vehicles. In contrast, small luxury cars often depreciate more quickly than other body styles.
The Honda Civic is a compact car available in sedan, coupe, and hatchback body styles, depending on the model year. This vehicle segment usually depreciates faster than SUVs and pickups but slower than luxury cars. However, if demand increases for compact cars, the Honda Civic may start to depreciate at a slower rate.
Much like age, a car’s mileage can affect its resale value and depreciation rate. On average, the higher the mileage, the lower the car’s value. The Federal Highway Administration estimates the average driver travels slightly more than 1,000 miles each month. For this reason, we base our models on 12,000 miles of driving per year.
Cars with higher mileage usually require more maintenance and repairs, especially over time. This factor can affect a vehicle’s resale value. If you drive your Civic fewer miles than average, you may decrease its depreciation rate. Similarly, if you drive more miles than average, your Civic might depreciate more quickly.
A vehicle’s condition has to do with its mechanical functioning and appearance, both inside and out. A well-maintained vehicle will generally have a higher resale value than a similar car in poor condition. If you follow Honda’s maintenance schedule for your Civic, avoid major damage, and keep the car looking good, you may get more money for the vehicle when you’re ready to sell it.
While it’s important to maintain your Civic, keep in mind that it may become cost-prohibitive to fix the vehicle down the road. If extensive maintenance or repairs cost more than the car is worth, it doesn’t make sense to pay for them. In this case, you might be better off selling the vehicle and purchasing a new one rather than putting money toward maintenance.
Did you know color can affect the resale value of your Honda Civic? According to a study by iSeeCars, certain vehicle colors tend to hold their value better than others. Bold colors such as yellow, orange, and green have higher resale values on average, according to the study. Beige is another color that retains its value over time.
In contrast, common colors such as black, brown, and gold typically have the highest depreciation rates. That’s because there are more vehicles available in those colors. If you want to get the highest possible resale value for your Civic, consider purchasing it in a color that has a slower depreciation rate.
Other Costs of Honda Civic Ownership
When purchasing a Honda Civic, it’s important to consider the depreciation rate as part of the cost of ownership. However, it’s only one factor that contributes to the total cost of owning a Civic. Here are some other ownership costs to consider before you purchase the car.
Insurance is one factor that can affect the cost of owning a Honda Civic. Generally, insurance companies consider a vehicle’s safety and reliability when determining the premium you pay. A vehicle with more safety features and higher reliability scores usually costs less to insure.
A Honda Civic typically has lower insurance costs than the national average. According to Bankrate, it costs $1,963 per year for full coverage on a Civic or $620 per year for minimal coverage. In comparison, the national average is $2,014 per year for full coverage and $622 annually for minimum coverage. The cost you pay to insure a Civic can also depend on where you live. For example, in Missouri, a Honda Civic is one of the cheapest cars to insure, costing about $1,235 per year for full coverage.
When purchasing a car, you should think about how much it will cost to maintain. By completing routine maintenance, you can keep your Civic in good condition, potentially improving its resale value. On average, it costs $567 per year to maintain a Civic. That’s considerably lower than the average annual maintenance cost for all vehicles, which is $694. You can review our graph to compare the maintenance costs of the Honda Civic by model year.
Not all model years of the Honda Civic have the same average maintenance costs. These model years have a higher probability of needing extensive or costly repairs:
The Best Model Year To Buy a Honda Civic
Based on factors including price and reliability (but not depreciation), our choice for the best Honda Civic model years to buy are 2006, 2010, and 2013-2021, but check out our article on the best and worst years of the Civic to get the whole story. When you factor in depreciation, we recommend buying a 2006 or 2010 Honda Civic. These model years have good reliability scores, even for older models, and they’re within the sweet spot for depreciation, so you’ll get the most value for your money.
Buying a Honda Civic New vs. Used
|Years Since Purchased||Depreciated Value||With Inflation|
A new Honda Civic currently has a starting MSRP of $23,750. After three years, it will have depreciated in value by about $5,700.00. In comparison, a three-year-old used Civic has accumulated $5,990.71 in depreciation, on average. Adjusting for inflation, that used Civic is worth $18,960 today, while the new Civic would be worth $18,050. For this reason, purchasing a used Civic can help you maintain the resale value of the car over time and cost less with savings of $4,790.
When purchasing a used car, do your research to understand the total cost of ownership for the vehicle you’re considering. Resources like Kelley Blue Book can help you determine the value of the car. Consider the other costs of ownership, such as insurance and maintenance, so you have a better understanding of how much it will cost to own, drive, and maintain your Civic over time.
The data in this article applies to a Honda Civic in a base trim with standard options. If you purchase a Civic in a higher trim or one with advanced options, such as a convenience package, it may have a higher value. Other factors can impact the value of your Civic, such as the condition of the vehicle and how you choose to sell it. Factors outside of your control, such as the COVID-era chip shortage, can also play a role in determining a vehicle’s resale value.
Keep in mind, there are large economic factors at play here too and the sale of new cars has caused shifts in the used market too. There is a stark difference in the cost of vehicles due to car manufacturers seeking higher profit margins after COVID as detailed by CNN and posted by CBS channel 58:
“… (T)he auto industry saw sky-high profits even as sales plummeted. Domestic manufacturers of cars and car parts saw a profit of $32 billion through the third quarter of 2022 (the latest data available) — their largest profit since 2016. Car dealerships also reported record-breaking profits through Q3, according to auto-retail advisers Haig Partners.
That’s because pandemic-era pent-up consumer demand remained strong as supply shifted, allowing automakers to increase their prices and their profit margins. Cars and trucks were sold nearly as soon as they hit dealership lots, and the average price paid for a vehicle in December soared to a near-record high of $46,382, according to J.D. Power.
Data from the Labor Department’s November Consumer Price Index shows American consumers are paying about 20% more for cars than they were in 2019.
The trend could continue into next year — research website Edmunds expects new-car sales to hit 14.8 million in 2023, a marginal increase from last year but well below pre-pandemic levels.
The auto industry has entered a new era: Less choice, higher prices and larger profit margins. So far it seems to be working for them.”
This shift by car companies to create higher profit margins by taking advantage of the heavily-reported-on chip shortage panic of COVID has had rebounding effects on the value of used cars.
Be aware that newer years (the latest 3-4 model years) may be inflated in price because of this and depending on how big this problem is for the model you are considering – it may even be inflating the price of the older model years.
Frequently Asked Questions About Vehicle Depreciation
In general, Honda Civics hold their value well over the years. Even older model years have the potential for good resale value. However, keep in mind that the depreciation of your Civic depends on many factors. In addition to the ones mentioned above, including age, mileage, and condition, how you sell your Civic can affect its value.
For example, if you choose to sell a white 2020 Honda Civic sedan in good condition to a private buyer, you would get $18,486 for the car. In comparison, you’d get $16,437 for the car if you trade it in at a dealership, according to Kelley Blue Book data.
The best Honda Civic model years to buy are 2006, 2010, and 2013-2021. These model years have good safety and reliability scores, and they have a lower chance of needing costly repairs. If you want to purchase a Civic in the depreciation sweet spot, choose a 2006 or 2010 model.
If you’re purchasing a used Honda Civic, try to avoid these model years:
While some of these model years are in the sweet spot for depreciation, they also come with lower reliability scores and a high chance of extensive repairs. In particular, the 2012 Civic has known issues related to the engine, which may result in expensive repair bills.
It’s difficult to determine an absolute number that tags a Civic as a high-mileage vehicle because it comes down to its condition and other factors. Sure, 200,000 miles may seem excessive, but if it involves mostly highway travel in a well-maintained car, then mileage may be less critical. On the other hand, a poorly maintained Civic with 100,000 miles that’s endured nothing but start-and-stop driving may indeed be past its prime. A “high-mileage” determination is best handled case-by-case, following a thorough mechanical inspection.
Based on our data, we recommend purchasing either a 2006 or a 2010 Honda Civic. These model years have a good resale value based on their depreciation rate. They also have good reliability scores, and they’re less likely to cost you money in expensive repairs.
(2023.) Honda Recognized as ‘Best Overall Brand’ and ‘Best Value Brand’ in 2023 Kelley Blue Book Brand Image Awards. Honda Auto News. Retrieved Aug. 28, 2023, from https://hondanews.com/en-US/honda-automobiles/releases/release-f61ab7d13cb83fb181b8bc22df119154-honda-recognized-as-best-overall-brand-and-best-value-brand-in-2023-kelley-blue-book-brand-image-awards
(2023.) About Us. Honda Motor Company. Retrieved Aug. 28, 2023, from https://www.honda.com/about
(2023.) Average Miles Driven Per Year: Why It Is Important. Kelley Blue Book. Retrieved Aug. 28, 2023, from https://www.kbb.com/car-advice/average-miles-driven-per-year/
(2023.) Honda Civic. Honda Motor Company. Retrieved Aug. 28, 2023, from https://automobiles.honda.com/civic
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