The Highlander received higher ratings than other well-liked cars like the Honda Pilot and Subaru Ascent. KBB data indicates that the Highlander keeps 60.2 percent of its value 36 months after purchase. It still has 46.3 percent of its worth after 60 months. In contrast, the Ascent retains 60% after 36 months and only 46% after 60.
In This Article...
A Toyota Highlander will depreciate 21% after 5 years and have a 5 year resale value of $36,496.
The Toyota Highlander maintains its value very well over the short term and is among our top 20 cars after three, five, and seven years. The Highlander offers outstanding value for individuals searching in this car category, and you can be secure in your purchase whether it is new or old.
The anticipated depreciation over the following ten years is shown in the figure below. These outcomes apply to cars that travel 12,000 miles annually on average and are in good condition. It also counts on a $45,959 retail price for the vehicle. Enter the purchase price, anticipated length of ownership, and yearly mileage estimate. We can estimate the Toyota Highlander’s projected resale value using our depreciation calculator.
Share
What is the first-year depreciation on a new Toyota?
Okay, even though numerous things affect how and why cars deteriorate, one thing holds true almost always regardless of the kind of car you purchase:
New cars lose value far more quickly than secondhand cars. how much quicker We’ll simply say that we hope you’re buckled up.
- ONE MINUTE LATER: As soon as you drive off the lot, a new car loses somewhere between 911 percent of its value. So, when you take a $30,000 brand-new automobile home for the first time, you’re essentially throwing $3,000 out the window!
- AFTER A YEAR: According to research, the first year of ownership is when the value of a new car drops the most. Your automobile will likely be worth approximately 20% less than what you paid for it after a year.
- AFTER FIVE YEARS: That new car will lose 1525 percent of its value each year until it reaches the five-year mark after that sharp first-year decline. Therefore, the new car will have lost almost 60% of its worth within five years. 2,3
Which SUVs remain in demand the longest?
One of our all-time favorite small crossovers is the Honda CR-V; in fact, it bested other models in its class in a five-way comparison test. Any trim level is enjoyable to drive, and its roomy interior is packed with creative packaging ideas. Because of this SUV’s many great qualities, we can overlook its small infotainment screen and ugly rear appearance. The CR-V lineup consistently retains 53.41 percent of its value, placing it rightfully in tenth place among SUVs with the highest resale values.
A Toyota RAV4 will depreciate 21% after 5 years and have a 5 year resale value of $27,757.
Toyota and “value” go hand in hand, and the RAV4 is no different. The RAV4 compares favorably to all other excellent value-retaining vehicles (Top 20 at years 3, 5, and 7), and it complements the overall value provided by the majority of the Toyota fleet. RAV4s, whether bought new or used, are great values because to their dependability and cheap operating expenses.
The anticipated depreciation over the following ten years is shown in the figure below. These outcomes apply to cars that travel 12,000 miles annually on average and are in good condition. Additionally, it counts on a new-car selling price of $35,135. Enter the purchase price, anticipated length of ownership, and yearly mileage estimate. We can estimate the Toyota RAV4’s anticipated resale value using our depreciation calculator.
What midsize SUV maintains its value the best?
- Mazda CX-5 from 2018.
- Kia Sorrento from 2018.
- Toyota RAV4 for 2019.
- Tucson, a 2018 Hyundai.
- Equinox 2016 Chevrolet.
- Jeep Grand Cherokee, year 2019.
- CR-V 2019 Honda.
- Toyota RAV4 from 2018.
Are Toyotas still worth anything?
Toyota tops the list with vehicles that, on average, depreciate only 42.3% after five years of ownership. This is less than the worldwide average of 49.6%.
The reliability of the brand helps Toyota automobiles maintain their value across all vehicle sectors, according to Ly.
Two Dodge and Mitsubishi vehiclesout of the ten on the listhave depreciation rates that are higher than the industry average (51.4 and 51.8 percent, respectively). These, however, are still more expensive than the car companies that lose the most value, such as Maserati at 66.4 percent and Buick at 60.1 percent on average.
According to Julia Blackley, the study’s author, Dodge and Mitsubishi were included on the list since they continue to score among the top 10 lowest-depreciating brands overall when compared to other automakers.
Continue reading to discover another list of automakers that build low-depreciating cars:
What car loses value the least quickly?
The 10 Slowest Decreasing Cars
- Challenger by Dodge.
- WRX Subaru.
- Nissan 4Runner.
- Tundra by Toyota.
- 911 Porsche.
- Wrangler Jeep.
- Tacoma by Toyota.
- Wrangler Unlimited by Jeep.
Which car brand loses the least value over time?
Top 10 Automobiles with the Lowest Decreasing Value
- Wrangler Unlimited by Jeep. $30.9 % equals $12,168.
- $10,496 for a Toyota Tacoma, 32.4 percent.
- Wrangler Jeep. $10,824 or 32.8 percentage.
- $56,133 for a Porsche 911, or 36.0 percent.
- $17,020 for a Toyota Tundra, or 37.0 percent.
- $16,325 for a Toyota 4Runner, or 38.5 percent.
- $14,192.39.8 percent Subaru WRX
- $16,303 for a Dodge Challenger, or 40.6 percent.
How much does an SUV lose value annually?
By the end of the first year, the value of your car has dropped by about 20 to 30 percent. According to current data from Black Book, which monitors used-car market, depreciation from years two to six varies from 15 to 18% annually. Generally speaking, cars lose at least 60% of their initial value in five years.
Although not all cars degrade at the same pace, some brands and models do a better job of holding their value than others. Additionally, depreciation rates can alter over time.
For example, as gas costs rise, the value of big SUVs or pickup trucks may fall because fewer people are prepared to pay for a gas guzzler. Or, because there is such a significant supply of returned lease cars on the market, depreciation rates on those particular models may quicken.
In fact, leasing provides a different insightful way to consider depreciation. When you lease a car, the cost is determined by the amount of the vehicle’s value that you’ll actually use, called depreciation.
When your lease period is up, the car will be worth its residual value. Cars often have residual values between 40 and 60 percent of their original cost after three years (though the market value may be higher).
BUYING USED
A new car will lose the most value due of the first-year decline. You can save a large amount of money on a practically new car by purchasing one that is only a year old and avoiding this initial hit from depreciation. Of fact, delaying until after three years could result in the owner saving about half of the car’s original cost.
How can the value of an automobile be preserved?
- Maintain your automobile – If you can keep your car in good condition both inside and out, chances are you’ll obtain a better resale value. Maintain records of the repair and adhere to the suggested maintenance schedule for your vehicle. Avoid making changes to an automobile that can make it more difficult to sell, such as window lettering.
- Low annual mileage can help to delay depreciation. Driving a typical or lower annual mileage can help. Vehicles having more miles on them deteriorate more quickly than those with fewer kilometers.
- Purchase a car that will sell well; some vehicles keep their worth better than others. You can steer clear of cars that suffer the most from automotive depreciation by studying resale values before making a purchase. Resale values of a specific car from past years are provided by Edmunds and Kelley Blue Book, respectively. You can use such data to inform your estimation of a model’s potential future value. In addition, Kelly Blue Book releases a list of the top 10 vehicles for resale value every year.
- Think about a used car. New autos depreciate more quickly than used cars. Depreciation typically occurs at a rate of 20% in the first year, plus an additional 10% for each additional year up to five years. This means that automobiles may effectively lose more than 40% of their value in that time frame. The majority of the depreciation has effectively been “paid for you” if you purchase a three-year-old car.
- It’s been said that the stock market is like a roller coaster: You only get hurt if you leap off. Drive your car for a very long period. Car depreciation follows the same pattern. Since depreciation only affects you when you sell, if you continue to drive the same automobile for years after it has lost the majority of its initial worth, the impact will be less noticeable. Once you’ve made the decision to buy a new vehicle, you can schedule the ideal time to do it.
- Examine potential tax deductions – If you use your automobile for work (even a side gig), you may be able to claim a portion of the depreciation on your income taxes over a five-year period. For specifics, speak with your tax professional.
- Sell it yourself: In the end, calculating depreciation is only a matter of adding up the purchase price, sale price, and depreciation. Less money is lost to depreciation the more money you receive for your car when you sell it. Generally speaking, a private sale may yield a higher price than a trade-in.
Information for this article came from a number of sources that are not affiliated with State Farm (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). We do not guarantee the correctness or reliability of the information, despite the fact that we think it is dependable and accurate. Any third-party websites to which this page may have hyperlinks are not under the control of State Farm, and their content is not endorsed or approved by State Farm, either directly or implicitly. The information is not meant to take the place of any applicable insurance policy’s coverage, manufacturer’s manuals, instructions, or information, or the counsel of a competent professional. These recommendations don’t cover all possible loss control strategies. State Farm makes no promises regarding the outcomes of using this material.
How much of a new car’s value is lost as it leaves the lot?
The first year is when cars lose the most value, and depreciation lasts for around five years. A car’s value can decrease by up to 20% in the first year and by about 40% from the original cost after the first five years. That means that after the first year, it loses around 15% of its value annually.
Depreciation varies greatly depending on the vehicle’s type, model, and market demand. Here are the vehicles that lose the most and the least value during a five-year period: