If you manage a fleet (or you've recently inherited that responsibility) one of the most important numbers to track is how fast your vehicles lose value. That's what net depreciation tells you. And getting it right can have a real impact on your bottom line.

What Is Net Depreciation? (A Quick Refresher)

Net depreciation is the rate at which a vehicle loses value over time, after accounting for any resale or trade-in value you get back at the end of its life. Think of it this way:

You buy a truck for $40,000. After three years, you sell it for $28,000. The difference — $12,000 — is your depreciation. Net depreciation turns that into a monthly or annual rate so you can compare vehicles fairly.

This number matters because it directly affects total cost of ownership (TCO). A vehicle that depreciates slower keeps more of its value on the books — and puts more money back in your pocket when it's time to sell or trade.

Lower net depreciation = better residual value = lower overall cost to operate.

Net Depreciation Rates by Vehicle Segment

We pulled net depreciation rates across six common fleet vehicle segments. The table below shows the average monthly rate — and the top-performing model in each category.

Note: Data has been extrapolated from vehicles within a threshold of 100,000 miles and 60 months of use.

What This Means for Your Fleet

Here’s what those numbers actually mean for how you run your fleet.

A few key takeaways to keep in mind:

Sedans retain the strongest residual value

• At 0.50% monthly net depreciation, sedans are the clear outlier on the low end.
• Fleet takeaway: If your duty cycle allows it, sedans offer the most predictable long-term cost control and the lowest capital erosion — a smart counterbalance in fleets weighted toward higher-cost vehicles.

Small and medium SUVs offer near-sedan residual retention

• Small SUVs (0.63%) and medium SUVs (0.66%) sit just above sedans while providing greater cargo capacity and driver comfort.
• Why this matters: These segments are prime candidates for standardization in large fleets — they minimize depreciation risk without sacrificing practicality.

Compact SUVs outperform crossovers on value retention

• Compact SUVs (0.76%) depreciate meaningfully slower than crossover SUVs (1.23%).
• Buying insight: Fleets treating these segments as interchangeable may be leaving money on the table — compact SUVs deliver better lifecycle economics with similar use-case coverage.

Trucks and full-size SUVs require intentional lifecycle strategies

• Small pickups (1.30%), light trucks (1.42%), and full-size SUVs (1.13%) show the highest monthly net depreciation rates.
• Strategic implication: These assets justify higher upfront spend only when utilization is high and replacement timing is tightly managed; buying power should be paired with shorter holding periods or stronger resale planning.

How to Use This Data in Your Fleet Strategy

Understanding depreciation rates is only half the battle. Here's how to put this data to work:

• Review your replacement cycles by segment. Vehicles with higher depreciation rates may need shorter cycles to maximize resale value.
• Report net depreciation as a KPI. Whether you're reporting to a CFO or a board, this metric gives a clear picture of fleet asset performance.
• Standardize around high-residual models where operationally possible. Fewer vehicle types also simplifies maintenance and parts sourcing.

Bottom Line

Not all vehicles age the same. The difference between a 0.50% and 1.42% monthly depreciation rate adds up fast across a fleet of dozens or hundreds of vehicles. Knowing which segments and models hold their value best gives you a real edge when planning acquisitions, setting budgets, and timing remarketing. Even small improvements in residual value management can save a fleet of 100 vehicles tens of thousands of dollars per year.