Congrats on a smart choice!
When you chose Toyota, you made a wise decision: that’s because time and time again, Toyota has been named as a brand that really holds its value
Why vehicle value over time matters
You’ve likely heard the term depreciation before: it refers to how much value your car loses over time. Said another way, depreciation is the difference between what you paid for your vehicle and what it’s worth as it ages.Depreciation matters most when it’s time to sell or trade your current vehicle for another one. Specifically, if you financed your vehicle rather than buying it outright and then decide to sell it before the end of your finance contract, you may realize that you owe more money than the car is worth. Or, you may pay off your finance contract and then decide to sell, only to realize that your vehicle isn’t worth nearly as much as you’d hoped it would be - and if you have to sell for less, you’ll have less available as your next down payment, or less to spend or save in whatever manner you’d choose.
A wise decision
Did you know that the average new car loses between 50 - 60% of its value after the first five years?
That’s according to depreciation research by Edmunds and CarFax, but there is a bright side according to additional reports. In a 2019 study of more than 7.7 million new and used car sales (model years 2014-2019), data shows that “as a brand, Toyota vehicles have the best resale value… [and] Toyota vehicles hold their value across all vehicle segments thanks to the brand’s reputation for reliability.”
The study, by iSeeCars.com, goes on to name some specific models that retain more of their value and depreciate less than average, like Toyota’s Tacoma, Tundra, and 4Runner models.
...data shows that “as a brand, Toyota vehicles have the best resale value… [and] Toyota vehicles hold their value across all vehicle segments thanks to the brand’s reputation for reliability.”
When it comes to the best resale value, Toyota’s 4Runner, RAV4, Highlander, and Land Cruiser made the list in the SUV category, while the Tacoma and Tundra were named in best resale value for trucks. Hybrids making the list of best resale value include Toyota’s Prius C, Prius, and Camry Hybrid.
The good news continues with research provided by Kelley Blue Book (KBB) which named three Toyota models on it’s 10 Best Overall Resale Values for 2020 models: the 4Runner - taking the list’s fifth spot, Tundra - named in the third spot, and Tacoma - taking KBB’s number one spot in resale value for the sixth year in a row! These same models were also listed in Road and Track’s New Cars That Depreciate Least and AutoGuide’s Top 10 Cars That Hold Their Value.
Without a doubt, choosing the best vehicle brand for retaining value is important whether you’re leasing, financing or purchasing a new car outright. We think it’s safe to say that no matter which Toyota model you’ve chosen, you’ve made an excellent choice, as the brand named with overall best resale value!