Year after year, the Toyota Tacoma is picked to have the slowest depreciation

New Car Depreciation Rates

Vehicle ownership costs are growing annually, with insurance, licensing, maintenance and operating costs continuing to inflate, many will be left reliant on public transit.  Even on the absolute low end, an experienced driver with a clean driving history who drives under 5000 km per year is looking at monthly costs of around $200 which does not include a loan payment and assumes the vehicle is owned outright.  On the higher end, costs can easily balloon to over $800 per month without a car payment for those who are inexperienced drivers and commute an hour each way for work. 


On top of all the expenses, comes rapid depreciation on new and near-new vehicles.  In the first year off the lot a vehicle will depreciate anywhere from 5% to 30%  note that depreciation rates are variable and depend on the type of vehicle and usage.  For instance, a Toyota tends to depreciate much slower than a Ford or GM.  Beyond the first year, every additional year of ownership will pull down the value until reaching approximately 30% in the first five years for a Toyota and 60%+ for a Ford or GM.   Using the vehicle lightly will help to preserve the value greatly, if one is able to keep the mileage under 10000 km per year this will be reflected in much higher resale value. 

What vehicle depreciates the slowest?


If you are looking for a vehicle that retains value, buy a Japanese made vehicle.  Toyota, Honda and Subaru are all known to depreciate much slower than their domestic competitors.  There is no clearly defined winner in terms of the slowest depreciation but in terms of value and reliability the 2014 Toyota Corolla is often the choice of personal finance aficionados.  For 2020, a 2014 model year is at the point in its lifespan that the depreciation has reached the even percentages for each subsequent year.  Usage and desirability will also continue to hold the value in place. 

When does vehicle depreciation stop?

Some classic cars are obviously appreciating in price. A sixties or even seventies Chevy Camaro or Ford Mustang will only continue to increase in value. From a personal finance perspective, owning a restored classic can be seen as an investment.   Even today opportunities exist to buy a classic, the Plymouth Fury Sport 318 is a car that is not well known by those who dream of owning a classic car.  It has the eye catching look, lots of power and reached the point of value appreciation many years ago.  For just $3500 one can buy a Fury to be restored or find a great deal on a $17250 restored convertible.  Some are even converting their classic to an EV in the restore stage to lower emissions and operating costs.


Even early nineties cars have started to appreciate from the VW Corrado to the Mustang Foxbody, they both have a large following and can be seen as an investment or something to keep in the family.  In British Columbia, discounted insurance rates come with antique and collector vehicles provided that they are designated for limited use.  Before making the decision to own a classic, antique or collector vehicle, weigh the costs and potential pitfalls, maintenance and repairs for these vehicles can be expensive along with high fuel costs depending on the engine size and your driving habits.  If you are mechanically inclined finding a well-maintained vehicle that you can tinker with and learn how to repair could be a money saver and also preserve your initial investment, if you put in the work, profits can even be had when it comes time to sell.

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