Are you wondering how much a typical pickup truck depreciates every year? Selecting a pickup truck is a hard decision for some. Knowing the depreciation rate of many different pickup truck models can help you make a financially sound decision.
How much do pickup trucks depreciate? After five years, the average pickup truck’s value depreciates at a rate of 36.5 percent based on the average depreciation rate of the sixteen of the most popular pickup trucks that I found on Cars.com.
Pickup truck depreciation life
Here is a list of the sixteen most popular pickup trucks and the associated depreciation rates (after five years):
- Chevrolet Silverado 2500, 29.5 percent
- Toyota Tacoma, 29.5 percent
- GMC Sierra 2500, 30.6 percent
- Ram 2500, 33.7 percent
- Chevrolet Silverado 3500, 33.8 percent
- Ford Super Duty F-250, 34.3 percent
- Ram 3500, 34.3 percent
- Ford Super Duty F-350, 35.3 percent
- Toyota Tundra, 37.1 percent
- Honda Ridgeline, 37.2 percent
- Nissan Frontier, 37.8 percent
- Chevrolet Silverado 1500, 39.7 percent
- GMC Sierra 1500, 39.9 percent
- Ram 1500, 42.7 percent
- Ford F-150, 44.1 percent
- Nissan Titan, 44.7 percent
Below, I will go through the many reasons for the given pickup truck depreciation rates and related news in the truck industry. I will also answer some of the major questions regarding depreciation rates for trucks and cars.
Do pickup trucks depreciate faster than normal cars?
The cost of a used full-sized pickup truck is too high for most. However, the depreciation rate of a full-sized truck is rising fast.
The rising cost is based on used, pickup truck availability (which has gone up) and the increase of incentives for brand-new trucks.
But do pickup trucks depreciate faster than normal cars? The depreciation rate changes in full size, late-model pick-up trucks is higher in 2019 than it is for late-model used cars, according to NADA Used Car Guide analysts.
The sales volume for full-size pick-up trucks five years old and under is predicted to go up 14 percent in 2019. There has only been a nine percent rise back in 2015.
During the first quarter of 2019, the amount of three-year-old, full-size pick-up trucks being auctioned off went up to 40 percent.
However, that significant increase in auctions must be put into proper perspective. The cost of pick-ups depreciated between five and six percent from 2012 to 2015.
This is fantastic considering the normal depreciation rate is around 16 percent.
Large pick-up prices are expected to go down between 11 and 13 percent, which is significant considering the prices for new, large pick-up trucks. In total, it is expected that car depreciation will be higher than trucks.
For instance, the cost of subcompact cars is expected to go down between 21 and 23 percent. This is a much bigger drop than the drop predicted for larger pick-ups.
Similar drops are prevalent with cars and trucks between two and six years old.
Embracing the future to win today’s automobile consumers
The Bruce Titus Automotive Group operates in Washington state and is comprised of four locations. The group is quite diverse and caters to lots of kinds of buyers.
In 2018, the general depreciation rate for cars two to six years old was double the rate for trucks two to six years old. However, that is starting to change, and truck depreciation rates are becoming higher.
Besides market issues like higher production and ferocious rivalry, more incentive expenditures may lower the value of used pick-up trucks. Incentives, particularly getting cash back, plays a big part in the decrease of much older used cars (that are the exact model and make).
Still, some used trucks sell for more than forty or fifty thousand dollars. Some Bruce Titus dealers have had to give out many incentives in order to beat their competition.
A J.D. Power study showed that the median costs of new, full-sized trucks from brands such as Ram, Chevy Silverado, and Ford F-150 went up five percent in the middle of April (2019) to more than forty-one thousand.
Between January and April 2019, GM spends over five thousand in incentives for the Chevy Silverado. That was close to two thousand more than the previous year. Autodata Inc. data showed incentives for the GMC Sierra increased to nearly one thousand dollars.
During the exact timeframe, Ford Motor Company spent more than three thousand on invectives for the F-series trucks, which were a thousand more than the previous year.
Fiat Chrysler spent around six thousand in incentives between January and April, which was a thousand dollars more than the previous year, says Autodata info.
At what age do pickup trucks depreciate the most?
It is possible to find out how much your specific pickup truck has depreciated.
Characteristic calculators are utilized to figure out car depreciation and provide a general idea of the total value a vehicle lost in the past couple of years or even decades.
For more precise data, you need to use Carfax’s History Based Value tool. It begins by using generic characteristics such as age and features to determine value.
After that, Carfax pulls info from the Vehicle History Reports for precise ways that affect their depreciation. It uses facts such as service histories, any past accidents, as well as how many people owned that precise vehicle.
Having more knowledge of the true value of a pickup truck will help customers pay less when car hunting. Or, if trying to sell a vehicle, it will ramp up the possibilities for earning top dollar.
What factors contribute to a pickup truck’s depreciate value?
An pickup truck will depreciate between 15 to 25 percent each year for the first five years as a rule of thumb. At the conclusion of that time period, you are left with a vehicle that is only valued at about one-third of what you spent on it.
Here are the main factors that influence vehicle depreciation:
Luxury branding
Lexus, Mercedes-Benz, Audi, and Infinity models are all a part of the category entitled “prestige luxury car.” Generally, luxury-branded cars and pickup trucks will retain more of their value when compared to non-prestige models.
Keep in mind that depreciating by 25% in the first year is bearable on a $25,000 non-prestige sedan, but that would not be the case for a $300,000 prestige, luxury supercar.
Mileage
Mileage is the simplest factor. The more a car or pickup truck is driven, the more it will depreciate in value. 15,000 miles a year is the standard in the industry.
This means that if you drive more than 15,000 miles yearly for more than five years, then your vehicle will lose almost all of its value by the end of five years.
Fuel prices
A couple of years back, the price of gas was nearly $5 a gallon. During this time, hybrids and other lightweight, fuel-efficient vehicles were depreciating at a smaller rate than gas-guzzlers like trucks, full-size sedans, SUV’s, and Hummers.
This is because those fuel-efficient models were in such high demand when the price of gas was at nearly $5 a gallon.
Gas prices in 2019 are much more affordable. This means truck depreciation rates are relatively lower than they would be if gas was less affordable.
Optional features
Vehicles that are fully-loaded with many different options will depreciate much faster than vehicles that are standard editions. Therefore, a near-loaded vehicle will be evaluated to be nearly the same price as a non-loaded vehicle in the long run.
Luxury features like leather, oversized chrome wheels, touring/sport packages, heated/cooled seats, rear entertainment systems, turbo/supercharged engines, and power sunroofs will lead to depreciate the most.
Conclusion
The average pickup truck’s value depreciates at a rate of 36.5 percent after five years based on the average depreciation rate of the sixteen of the most popular pickup trucks on Cars.com.
The selection of a pickup truck is a tough decision for some. Knowing the depreciation rate of various pickup truck models can help you select a pickup truck that you will enjoy thoroughly.
For more accurate data on a particular vehicle that has various problems, you should use Carfax’s History Based Value tool. Age and the features of the vehicle are incorporated into the estimated value of a vehicle with the tool.
If you are having trouble making a pickup truck selection, find someone you trust that is knowledgeable on pickup trucks and try to find a really good deal.
