As a rule, trucks hold their value better than most cars. This makes them a sound investment when buying a new vehicle. That said, truck depreciation rates can vary a great deal from model to model.
For example, sought-after off-roading favorites such as the Toyota Tacoma may only depreciate by 30% to 35% after five years. In comparison, trucks with the worst resale value can easily lose half their value or more within the same period.
But what are the pickup trucks with the worst resale value? And what are some of the determiners of a used truck’s depreciation rate? Let’s take a look!
Which Pickup Truck Has the Worst Resale Value?
As a rule of thumb, the most expensive trucks will depreciate the fastest. There are exceptions with specialty trucks and limited production models, but that rule has held true for decades.
Early indicators show that the first EV entrants will most likely depreciate the most once the new car smell wears off. Battery technology and build quality of these EV trucks is improving so quickly that once the manufacturer’s warranty expires on these trucks there will be only a short list of buyers interested in owning them.
5 Trucks That Depreciate the Fastest
EV trucks and their fast depreciation rate aside, the following models are often poor performers on the used truck market.
1. Hyundai Santa Cruz — 53%
This compact pickup is stylish but it’s also less affordable, less efficient, and less capable than many other models, including the Hyundai Maverick. With so many better options to choose from, the Santa Cruz has a five-year depreciation rate of 53%, making it one of the worst resale value trucks around.
2. GMC Sierra 3500HD — 50.2%
With its dated interior and underwhelming V8 engine, the GMC Sierra 3500HD isn’t a favorite among truck enthusiasts. The final nail in the coffin for this heavy-duty pickup is its 50.2% depreciation rate after five years.
3. Chevrolet Colorado — 49.3%
This midsize truck reigned supreme as one of the top-performing pickups back in 2015 and 2016. But Colorado is looking seriously dated these days, and its 49.3% depreciation rate reflects that.
With an updated Colorado coming soon, it’s better to buy used than to invest in a new one just yet. In particular, the off-road Z71 and ZR2 trims show signs of depreciating the least.
4. Nissan Titan — 47%
This truck has always had low production numbers and dismal demand. Limited features and an unimpressive gas mileage mean that the same holds true for used Titans, which average a 47% depreciation rate after five years. The truck was also recently discontinued, so expect depreciation to increase once the general public figures that out.
5. Ram 3500 — 46.4%
This heavy-duty truck gets the job done with great towing potential and a comfortable ride. That said, a well equipped 3500 series truck is expensive when bought new. As a result, the Ram 3500 fails to hold its value as much as other Rams and can depreciate by as much as 46.4% in five years.
How to Prevent Truck Depreciation
The make and model aren’t the only factors that affect a used truck’s depreciation rate. Even trucks with the worst resale value can command a higher used price if they compare well to similar makes and models on the following:
- Mileage: This is a huge factor when evaluating a used truck’s depreciation rate. A truck with lower mileage means less wear and tear and less chance of having to do repairs sooner. Keep your truck’s mileage down and you will see a much better return on your investment, even if your truck model usually has a high depreciation rate
- Condition: Dents and dings in your truck’s exterior will put a serious dent in the amount you can expect to collect at resale. Taking good care of your truck is paramount, but if it is in less-than-perfect condition when you decide to sell, carrying out minor repairs and getting it detailed beforehand can help improve your chances of a good resale price
- Records: Keeping up with your truck’s maintenance schedule is key, but you’ll want to ensure you have the records to prove it. With up-to-date service records, receipts of any work done or new purchases, and any other relevant paperwork on hand, your truck won’t see as much depreciation as others without their records in order
Your Complete Truck Depreciation Guide
These used truck depreciation rates might seem like bad news if you own one of the trucks with the worst resale value. But market fluctuations, used truck trends, and other factors can mean that truck depreciation is always changing.
Luckily, we’re here to take the confusion out of buying and selling used vehicles. If you’re ready to sell your truck, we can help you get a fair price. Or, for more information, contact us here at Motobyo today!