The short answer to this question is, yes, trucks really do hold their value! As a general rule, most trucks lose most of their value within the first five years. But, as a rule, trucks hold value well compared to other vehicles. In this post, we’ll take you through the rules of depreciation for most vehicles, and how they function throughout the lifetime of the vehicle.
The First 5 Years
Trucks lose most of their value in the first five years. The largest increment is lost after the first and fifth years of ownership. The depreciation as such can generally be broken down into:
- 20-30% the first year
- 10-15% the fourth year
- 40-50% after five years
Alternatively, you can think about the depreciation rate of a truck is how much of their value is lost each year in the first five years, usually around 15% to 25% on average. Every truck is different, and therefore some depreciate differently. But why do they depreciate anyway?
Why Do Trucks Depreciate?
Rarity & Parts Availability
Generally speaking, vehicles depreciate with wear and tear. Cars and trucks that are less popular or common depreciate faster because of their ability to keep running due to replacement part availability.
Reliability & Longevity
Heavier duty trucks seem to depreciate less than their lighter versions, and a good rule of thumb seems to be that sturdier trucks will equal sturdier value over time. Heavy-duty trucks are also often perceived as more reliable or practical and have value as work trucks.
Cost to Own
Additionally, vehicles that are perceived as more efficient tend to depreciate slower. Some insurers sell GAP insurance, which helps keep the value of a vehicle a bit longer, though it can be expensive.
A number of factors affect a truck’s value and the depreciation, from the make and model of the truck to the specifics of the individual truck itself. The market is always changing and so is the availability of replacement parts, and so the value of vehicles fluctuates with the market.
Diesel Trucks Depreciate Even Less Than Other Trucks
Diesel trucks especially depreciate at a slower rate than gasoline trucks and cars because they have more powerful engines, generally better fuel economy (they use about 30 percent less fuel than gasoline engines), 20 percent fewer CO2 emissions, and are known for their reliability and longevity.
Here are a few examples of diesel trucks that hold their value:
- GMC Sierra - A true workhorse, keeps around 60% of its value over its lifetime.
- Chevy Silverado - Also known for its power and workability, it keeps 60% of lifetime value.
- Dodge Ram HD - Ever popular and stylish, keeps 57% of value
- Ford F series Super Duty - Keeps 52% of value
- Nissan Titan XD - Keeps 45% value
Compare these vehicles with a typical car, which loses 50-60% of its value the first five years, or 15-18% each year over the course of the first six years. Trucks will keep their value much longer, with a higher degree of reliability.
Which trucks depreciate the fastest?
Depreciation rates shouldn’t deter you from purchasing a truck. All trucks depreciate, and just because some go faster than others, it doesn’t mean they aren’t good trucks. Below are some of the trucks that depreciate the fastest. Read 12 Fastest Depreciating Trucks to learn more about the trucks that depreciate the fastest.
- F-150 - The most popular truck sold depreciates 44-47%
- Nissan Titan - Depreciates 44-46%
- Ram 1500 - Depreciates 42-45%
- GMC Sierra 1500 - Depreciates 43%
- Chevy Silverado 1500 - Depreciates 42%
- Ford Ranger - Depreciates 41%
- Toyota Tundra - Depreciates 36%
- Nissan Frontier - Depreciates 37-40%
- Silverado 3500 - Depreciates 34%, faster than other heavy duty trucks.
- Honda Ridgeline - Depreciates 33-38%
- GMC Sierra 2500 - Depreciates 30-36%
- Toyota Tacoma - Depreciates 30-32%
Which trucks hold their value?
If you’re concerned about depreciation when it comes time to trade in, consider the following trucks when shopping around:
- Toyota Tacoma - Depreciates 32%
- Chevrolet Silverado 2500 and 3500 - Depreciates 34%
- Toyota Tundra - Depreciates 36%
- Ram 2500 and 3500 - Depreciates 36%
- Honda Ridgeline - Depreciates 38%
- GMC Sierra 2500 and 3500 - Depreciates 36%-43%
- Nissan Frontier - Depreciates 40%
- Chevrolet Silverado 1500 - Depreciates 42%
- Ram 1500 - Depreciates 45%
How can I keep the value of my truck?
A truck’s value will depreciate no matter what, but there are a few things to be done to help retain some value. The primary factors that affect a given truck’s value and depreciation rate include:
The model of a vehicle is important, but the year that it was made matters too. How old the truck is directly relates to the value of a truck. Unfortunately, a time comes for trucks too. Unless the truck is a vintage or collector’s vehicle, its value will continue to drop as it ages.
Mileage is another factor that makes a big difference in truck resale value, and it’s one that’s hard to beat. Every mile a vehicle has been driven the fewer miles it has for the future. Keep the car’s mileage down, keep more of its value.
Maintenance history is another important factor in determining a vehicle’s value. By keeping a truck maintained well and regularly, you can ensure that the vehicle will hold value over time. Well-maintained vehicles last longer, perform better, and have better resale value.
Fuel economy and the value of the vehicle is a two-pronged issue. First, poor fuel economy means spending more money on fuel over the lifetime of the vehicle, which means less overall money in your pocket. Consumers are valuing good fuel economy more and more, meaning that vehicles that get better MPG hold value better and longer. More people are prioritizing fuel economy because they prioritize environmental conservation and awareness, and reducing their emissions and air pollution.
Features & Preferences
Depending on the vehicle, more features equals more value. Whether those features are enhanced speed, power, safety features, aesthetics, or comfort. Like fashion trends, however, some of the features and options that come with a lot of vehicles are subject to change with the times. It might seem like a home run to purchase a vehicle with all the bells and whistles, but try to think long term and do your best to evaluate what the lifespan of those features will actually end up being.
Safety features not only increase the value of vehicles, and make them more desirable, they can also save you money on insurance. Features, like backup cameras and integrated navigation, usually retain their value and make a truck more desirable because of the comfort and safety they provide.
The last big factor is the overall condition of the vehicle. Dents, dings, and scratches to the exterior or interior can put a dent in dollars and scratch off quite a bit of the resale price. Investing in the maintenance of a truck is not only a good idea because it makes it last longer, but it can also save money by preventing larger issues that result in expensive repairs.
Invest in a Backup Camera
One of the surest ways to improve the value of your vehicle is by adding or maintaining an existing backup camera. You don’t have to worry about trying to trade in your old Ford F-150 or Ram 1500 to get a truck with a backup camera. At Camera Source, we have all the backup cameras you need to raise the resale and utility value of your vehicle. Browse our wide selection of kits, or get in touch with one of our customer service representatives today.