Do Toyotas Hold Their Value? What To Know About Resale & Depreciation
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Toyota has established itself as a symbol of reliability in the automobile industry. This legendary reliability is a testament to Toyota’s exceptional engineering and a significant factor in its outstanding resale value.
Over the years, Toyota cars have been praised for their enduring quality and dependability, significantly contributing to their low depreciation rates. Buyers recognize this long-lasting value and often choose Toyota for its proven track record and its financial prudence in the long run. In other words, Toyota is the way to go if you want a vehicle that lasts long and maintains its value.
But still, the question remains: do Toyotas hold their value?
Today, we discuss Toyota’s resale value, retention, and deprecation rates. Plus, we highlight some of the best and worst Toyota models in terms of resale value. Let’s get to it.
Do Toyotas Hold Their Value?
Yes, Toyotas are known for holding their value exceptionally well, thanks to their reputation for top-notch reliability. CarEdge says they consistently rank at the top among popular brands for value retention, with models like the 4Runner, Tacoma, and Highlander being notable for their minimal depreciation over five years.
This strong value retention makes Toyota a preferred choice for long-term vehicle investment. On the flip side, prepare to pay more if you’re looking to buy an older Toyota, especially with models like the Tacoma, Tundra, and 4Runner.
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Toyota Used Car Market Trends (Powered by CoPilot’s Price Pulse Tool)
Do Toyotas hold their value? Determining its performance in the used car market is one way to find out. For this purpose, we used our handy Copilot Price Pulse Tool to gain several critical insights regarding Toyota’s market trends:
High Resale Value Indicators
Toyota’s vehicles are currently selling for $6,488 more than what was expected initially, showing just how much people value them when reselling. This extra amount people are willing to pay highlights Toyota’s strong reputation for being durable, reliable, and high quality.
Regarding the used car market, consumers consider Toyota a reliable choice. This perception of reliability helps Toyota maintain a high resale value, which is good news for those who own a Toyota car. It indicates that Toyota cars will likely depreciate at a slower rate than cars of other brands, making them a wise investment in the long term.
Market Demand and Brand Perception
Toyota’s prices have been pretty steady recently, with no change in the last 30 days and just a 1% rise over the past three months. Again, this shows that there’s a high demand for Toyota cars.
This interest likely comes from Toyota’s brand perception of consumers. Folks usually think of Toyota vehicles as long-lasting, fuel-efficient, and inexpensive to maintain, which makes them a popular pick for those looking to buy a used car.
Peak Price Analysis
As of August 1, 2022, the Toyota’s highest price was $30,842. However, it has since decreased by $2,111. The fluctuation in price may be due to various factors, such as seasonal fluctuations, changes in the overall economy, or buying trends.
ARE TOYOTAS RELIABLE?
It’s essential to understand the capabilities of your car and whether or not you can trust it, so we here at CoPilot have compiled everything you need to know about how reliable Toyotas are!
What This Means for Car Shoppers and Sellers
If you’re considering buying a used car, getting a Toyota might be a smart move. Even though you might pay a bit more initially because of their popularity, the fact that Toyotas are reliable and don’t lose their value quickly could make up for that extra cost. Meanwhile, for Toyota sellers, things are looking good, too, since you’ll likely be able to sell your car at a reasonable price, keeping a lot of the money you originally spent on it.
Which Toyota Cars Have the Best and Worst Resale Value?
Although Toyota cars are known for reliability and longevity, resale values vary significantly by model. Below are the best and worst Toyota models for resale value, as per iSeeCars:
Best Resale Value
- Toyota Tacoma: Retains 86.2% of its value after the first five years. The Toyota Tacoma’s high resale value is primarily due to its reliability and quality. Known for lasting many years and withstanding high mileage, it maintains a strong demand in the used car market.
- Toyota Tundra: Has a resale value of 80.5% after five years. The Toyota Tundra’s high resale value is attributed to its reputation as a long-lasting and durable truck. It’s known for its above-average reliability, with high J.D. Power reliability rankings.
- Toyota 4Runner: Only loses about 25% of its value in 5 years. From bullet-proof reliability to impressive longevity, it’s hardly surprising the 4Runner would retain much more of its value over time.
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Worst Resale Value
- Toyota Avalon Hybrid: Only retains 49.8% of its value in 5 years. The Toyota Avalon Hybrid’s low resale value is typically due to factors like market demand, perceived reliability, competition with newer models, and declining popularity of large cars.
- Toyota Venza: Retains 57.7% of its value after five years. The Venza’s lower resale value can be attributed to several factors like market demand, stiff competition in the SUV space, and the lower resale value of hybrid models. Hybrids often have a faster depreciation rate due to evolving technology, battery replacement concerns, and shifting consumer preferences towards newer hybrids and EVs.
- Toyota Sienna: The Sienna minivan retains 57.7% of its value after five years. Even as one of the lower-ranked Toyota models in resale value, the Sienna offers more value retention than competing vehicles.
So, do Toyotas hold their value? Certainly! Toyota has a well-established reputation for retaining its value, which is reflected in the low depreciation rates and consistent prices in the used market of its many models. The blend of high-quality Japanese engineering, less expensive maintenance and insurance costs, and a robust resale market make Toyota vehicles an excellent option for buyers seeking long-term value.
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