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Toyotas are well known as reliable cars that seem to last a lifetime (ok maybe not quite that long but you get my point). However, what happens if you need to sell your Toyota early?
Do they hold their value at all?
If purchased new, most Toyota vehicles will lose between 30-40% of their value in the first 5 years. That means if you pay $30,000 for your Toyota it will only be worth $18,000-$21,000.
Now losing 30-40% of the vehicles value might seem like a lot and make you question if Toyotas hold their value well at all… but they are actually near the best when it comes to resale value.
According to US News the worst car for holding its value after 5 years is the BMW 7 series. It depreciates at a whopping 72.6% over 5 years!
That means if you bought a top of the line BMW 7 series for $140,000 (yes that is a real price) after 5 years that car would be worth under $40,000 losing you over $100,000 in 5 years!
When it comes to retaining the value of its cars, Toyota constantly ranks at the top of the most popular brands. Three Toyota models (4Runner, Tacoma, and Highlander) are all ranked in the Top 10 after five years of depreciation.
Although you will lose 30-40% of a new Toyota’s value over 5 years it is still one of the best in regards to resale value.
Whether new or old, Toyota knows how to gain your trust and provide comfort along with reasonable cost maintenance. However, be prepared to pay a bit more than you would for another brand when buying used since their values don’t drop as much.
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Why Do Toyotas Hold Their Value?
Although Toyotas holding a larger percentage of their value over time is good if you are looking to sell your used car, if you are wanting to buy a used Toyota it means you will spend more on it.
Is it worth spending that extra to get a used Toyota vehicle or are you better off getting a different brand? Why do Toyotas seem to hold their resale value so well?
Toyota hold their value because of low cost of ownership, reliability, durability, driver comfort, customer loyalty, service, and reputation. These are just a few reasons why Toyotas stay in high demand even when they have been used.
If buying a used Toyota that higher price is well worth every penny. Here is why:
Cost of Ownership & Resale Value
It’s not just the purchase price of a car that you pay for when you acquire it. It would be best to consider the overall cost of ownership, which decreases the longer you own the car.
Toyota resale value is better than others because it produces some of the most lasting cars on the market today.
For years, Toyota cars have been known for their durability and have established a reputation as reliable vehicles. Toyotas are known for their reliability, which means you’ll spend less money on repairs and maintenance throughout your ownership.
Before purchasing a new vehicle, one of the most crucial factors to consider is how well it will hold its value.
If you have infinite funds, this may not be an issue (or if you have a genie). On the other hand, purchasing a vehicle is considered an investment by the vast majority of individuals.
A vehicle with a higher rate of depreciation is a less cost-effective investment. It’s no coincidence that most luxury brands lose value over time as newer models replace their flashiness, which is why Toyota is a good choice for anyone looking to buy a car that will hold its worth for a longer time.
Toyotas Are Reliable
Many elements go into rating car models for reliability and value. Still, the Toyota resale value for most models is consistently at the top due to various considerations such as the original new price, the current price, maintenance costs, and the remaining years of predictable costs.
Toyotas are frequently seen on lists of high-quality used vehicles for sale, owing to their outstanding reputation for dependability.
Whether it’s Yaris or a Camry, a Prado, or an FJ Land Cruiser, one thing drivers can bet on is that these well-built, technologically advanced vehicles will keep going and going.
A Toyota may easily reach 200,000 miles (or more), which is an important selling feature for many potential user car buyers. If you’re in the market for a reliable car, you’ll save money by buying a used Toyota.
Aside from innovation, Toyota relies on its brand reputation for reliability and build quality, making them particularly popular with drivers who demand more from their vehicles and expect them to face rougher, more challenging terrain.
In addition to being reliable, Toyota used automobiles are better equipped to handle the climate extremes you would experience in the regions such as the Midwest than other, more temperamental types of cars.
Driver’s Comfort and Loyalty
Toyota resale value is also very high because they are extremely popular. Safety features, driver comfort, off-road prowess, and aesthetics are just a few of the reasons behind Toyota’s popularity.
It’s no surprise that many customers prefer Toyota products over other cars and pickups, as they tend to keep them longer.
For years, Toyota has been known for its reliable vehicles.
When it comes down to it, Toyotas are less likely to break down and are reasonably inexpensive to repair when they do happen to break down. As long as you maintain your Toyota vehicle properly, it will likely survive long enough to pass on to your children once they reach driving age.
Toyota’s focus on durability and fuel economy has given the brand an outstanding reputation, which has resulted in strengthening customer loyalty to the brand.
Functionality Over Aesthetics
Many of today’s manufacturers place a greater emphasis on aesthetics than on functionality. Toyotas resale value is highly affected by its theory of function over form.
If you’re looking for the most torque, power, or speed in a Toyota, you’ll be disappointed. Simplicity is what distinguishes Toyota automobiles. Toyota cars are popular with many purchasers because they provide excellent comfort, are easy to drive, and are less likely to break down.
Toyotas may not be as exciting as other automobiles, but they are safer. As a result, some might think that Toyota vehicles are powerless or inefficient but that wouldn’t be true.
Customers and critics have lauded models like the Prius, Camry, and Yaris. Functionality above form may compromise thrill and mystery, but it results in a safer car due to this design philosophy.
However, the focus on economy and reliability boosts public perception and fosters robust customer loyalty among the public in general.
It Takes Time To Introduce New Features
Automakers often seem to have a race to introduce new features, but Toyota is patient and takes its sweet time to create a smooth and better experience for the consumers. Once enough research and development have been performed, the corporation releases new features that are safe from all sides.
It also implies that the corporation never rushes into producing any of its vehicles, including SUVs, trucks, and sedans, in its lineup. It will perform additional studies if necessary if there are concerns regarding the usefulness of the new feature and whether it will survive the test of time.
The Toyota Company exemplifies the conservative Japanese attitude to innovation and business.
Toyota is recognized for its precision engineering, and it won’t develop a new feature to compete with other automakers or make the front page of car magazines.
When it comes to modernizing its generations, Toyota takes a relatively cautious approach.
There is no need to introduce cutting-edge technology to attract attention. Instead, Toyota searches for ways to perfect helpful features that add value to the vehicles for a longer time and this gives a tremendous competitive advantage for reliability and reselling over others!
Servicing & Reputation
Toyota offers customized service plans to help you keep track of your regular maintenance appointments. You can even purchase a monthly payment plan based on your annual mileage.
Toyota’s reliable engines require little more than the standard yearly service for maintenance.
To maximize the vehicle’s resale value, ensure that it has a complete service history and that the paperwork includes receipts from any additional work done by authorized dealerships.
Toyota resale value, being a secondhand car, is greatly influenced by its preventative maintenance.
In conclusion, a Toyota is the best bet for anyone looking for a solidly made car that drives well, gets them where they need to go quickly, and doesn’t spend more time in the repair shop than it does on the road.