Honda Prologue Depreciation

Honda Prologue Depreciation Uncovered A Buyer’s Guide to Value Retention

Lease or Buy the Honda Prologue? lets find out.

The 2024 Honda Prologue has arrived, marking a pivotal moment for one of America’s most trusted automotive brands. As Honda’s first mass-market all-electric SUV, the Prologue is designed to do what Honda does best: deliver practicality, reliability, and a smart ownership experience to millions of families. It aims to be the go-to choice for the legions of loyal CR-V and Pilot owners ready to make the switch to electric.

But as this handsome EV rolls onto dealer lots, it faces a market unlike any Honda has seen before. The electric vehicle landscape of 2024 is volatile, with resale values being hammered by price wars, rapid technological change, and a flood of new models. So, the crucial question for any potential Prologue buyer is: Will Honda’s legendary reputation for holding its value survive in the electric era? Our detailed depreciation forecast provides the answer.

The EV Market’s Depreciation Problem

Before diving into the Prologue specifically, it’s vital to understand the market it’s entering. Unlike the early days of EVs, where scarcity kept resale values high, the current environment is actively hostile to value retention. Here’s why:

• Aggressive Price Wars: Triggered by Tesla, manufacturers are continuously cutting MSRPs on new EVs. This immediately lowers the value ceiling for every used EV on the market ((https://www.topspeed.com/tesla-model-y-price-history/)).[3]
• Rapid Innovation: Every year, new EVs come out with longer ranges, faster charging, and better software. This makes a three-year-old model feel technologically behind, hurting its appeal to used buyers
• Growing Supply: A wave of three-year-old leased EVs is now returning to the market, increasing supply and putting downward pressure on prices.[4]

The result? A recent iSeeCars study found that the average EV loses a shocking 58.8% of its value in five years, far more than the average gasoline car (45.6%) This is the challenging reality the new Honda Prologue must face.

Our Pick for Analysis The 2024 Honda Prologue Touring AWD

To create the most useful forecast, we’ve centered our analysis on the Prologue Touring AWD. With an MSRP of $54,700, this trim hits the sweet spot for families, offering the security of all-wheel drive along with desirable upgrades like a leather-trimmed interior, a panoramic moonroof, and a premium 12-speaker Bose audio system ((https://www.communityhonda.com/Comparing-The-Trims-of-The-2024-Honda-Prologue-Which-is-the-Best-for-You/)).[21] It represents the ideal blend of features and value within the Prologue lineup.

The Forecast Honda’s Brand Power Provides a Shield

To predict the Prologue’s future value, we benchmarked it against a perfect rival: the Ford Mustang Mach-E. As another mainstream EV SUV from a legacy automaker, the Mach-E’s market history provides a grounded look at how a vehicle like the Prologue will perform. The Mach-E has a tough 3-year depreciation rate of around 49%

We started with this 49% baseline and then adjusted it for factors unique to the Prologue:

• Honda Brand Equity (-4% depreciation): This is the Prologue’s superpower. The Honda badge is synonymous with reliability and strong resale value. This “halo effect” provides a powerful shield against depreciation that few other brands can match.
• Conservative Styling (+1% depreciation): The Prologue’s design is safe and conventional. While pleasant, it lacks the “wow factor” of the Mach-E, which could slightly dampen its long-term appeal.
• Future Production Mix (+2% depreciation): Reports indicate Honda plans to increase the production of mid-range Touring models in 2025 ((https://www.reddit.com/r/HondaPrologue/comments/1ibep3a/honda_will_produce_more_affordable_trim_levels_of/)).[26] More supply in the used market in a few years will inevitably lead to more competitive pricing and slightly lower resale values.

Our final forecast: the 2024 Honda Prologue Touring AWD is projected to depreciate by 48% over three years, retaining 52% of its original value.

The Financial Breakdown What 48% Depreciation Looks Like

For a vehicle with a $54,700 MSRP, a 48% loss in value equals $26,256 in depreciation over 36 months. While still a very large number, the Prologue’s 52% value retention is a testament to Honda’s brand strength, outperforming its Mach-E benchmark.

Table: Honda Prologue Touring AWD – 3-Year Predicted Depreciation Schedule

Chart: Predicted Value Retention vs. Vehicle Age (Honda Prologue Touring AWD)

(A line graph would be displayed here, showing a curve starting at 100% and dropping to 75% in Year 1, 62% in Year 2, and 52% in Year 3.)

The Smartest Way to Drive a New Prologue

Even with its strong brand, losing nearly half the vehicle’s value in three years is a major financial hit. For this reason, our recommendation for most prospective Prologue drivers is the same as with other new EVs: lease, don’t buy.

Leasing protects you from this risk. You get a predictable monthly payment, and at the end of the term, you simply return the car. The manufacturer’s finance company absorbs the impact of depreciation, not you.

Furthermore, Honda is promoting the ability for buyers to benefit from the $7,500 federal tax credit when leasing ((https://automobiles.honda.com/2024/prologue)).[17] This can make the monthly lease payment significantly more affordable than a loan payment, making the decision even easier.

Final Thoughts

The 2024 Honda Prologue is poised to be a massive success. It’s a well-thought-out, practical, and comfortable EV that perfectly targets Honda’s core audience. Its projected ability to hold its value better than many competitors is a direct result of the trust Honda has built over decades.

However, it cannot fully escape the powerful forces driving depreciation across the entire EV market. The smartest way to enjoy everything the Prologue has to offer—its smooth ride, spacious interior, and zero-emissions powertrain—is through the financial security of a lease.