Toyota Is Brand With Best Retained Value Thanks To Tacoma, Tundra and 4Runner
A new study by researchers at iSeeCars.com has found that the Toyota brand is the one with the lowest overall depreciation. The study looked at the five-year depreciation of vehicles and found that Toyota's average was 42.3% depreciation and that the average overall was 49.6%.
This means that as a brand, Toyota's vehicles depreciate about 14% less than competitors. Toyota vehicles hold their value across all vehicle segments thanks to the brand’s reputation for reliability,” said Phong Ly, CEO of iSeeCars.com. The brand is legendary for three things; Quality, Durability, and Reliability. That reputation is making the vehicles it sells worth more in the used car marketplace.
Or should we say, used truck and SUV marketplace? It is the Tacoma, Tundra, and 4Runner that are the highest-retained value vehicles at Toyota. “Toyota and Honda are known for their reliability, and their reputation for dependable pickups helps aid their resale value,” said Ly. He added, “The Toyota 4Runner is a body-on-frame SUV, which means it’s built like a truck and has truck-like durability,” said Ly. “Since its release in 1984 the 4Runner has amassed a loyal following, and its ruggedness and reputation for being a reliable vehicle help contribute to its value retention.”
Toyota's Tacoma has been passed by the Wrangler line as the top overall vehicle for retained value. “Jeep Wranglers are known for retaining their value for reasons including their ruggedness, durability, and iconic design,” said Ly. “Because of Jeep’s loyal following, their demand outstrips supply in the used car marketplace leading to high resale values.”
One might expect to see obscure specialty brands like Maserati on a listing of brands that depreciate most. However, BMW is the second-worst and Cadillac the third. We will say that the pricing and sales model these brands have that depend heavily on leases may be part of the reason.
You can view the full report at iSeeCars.com.
In addition to covering green vehicle topics, John Goreham covers safety, technology, and new vehicle news at Torque News. You can follow John on Twitter at @johngoreham.