What Trucks Depreciate The Most?
When it comes to trucks, there are so many great aspects about them that keep drivers coming back for more each year. In fact, ask a truck lover why he or she loves his or her truck so much and you will be listening for days. However, the truth of the matter is, despite being such great and fun vehicles to drive, trucks have a reputation of not holding their value well.
This has nothing to do with the truck itself (in most cases) but more so because trucks are a very niche type of vehicle. They are not as versatile as saying a sedan or even a crossover.
If you have a truck or are thinking of buying one and are wondering, “what trucks depreciate the most?” Then we have got you covered because we are sure there are many people out there that have been or are wondering the exact same thing.
Top Trucks That Do Not Hold Their Resale Value
|Truck Brand / Model||5-Year Average Depreciation|
|GMC Sierra 1500||5-year depreciation average- 43.0%|
|Ram Pickup 1500||5-year depreciation average, 45.2%|
|Nissan Titan||5-year depreciation average, 45.9%|
|Ford F-150||5-year depreciation average, 46.9 %|
We have to warn you, some of the trucks that made this list will surprise you. Why? Because there is usually a negative connotation associated with trucks that do not hold their resale value.
Actually, not just trucks but cars in general and we definitely understand why. Why would there be anything positive about the word depreciation?
A car that loses its value is not a good trait; however, just because a car has a low resale value most people would automatically think the reason why it has low resale value is that it is a poor quality car.
The truth of the matter is, that is not true at all. Many factors determine a car’s resale value and one of the top reasons might surprise you. Before we get too deep into that explanation, let’s just jump into the list of the top trucks that do not hold their resale value. We promise we will get back to this topic after the list.
- #4: The GMC Sierra 1500
- 5-year depreciation average- 43.0%
- Coming in at number 4 on our list is the GMC Sierra 1500. Now the GMC Sierra 1500 is a great luxury truck. It is often compared to the Chevy Chevrolet and for good reasons as well.
- However, despite its beautiful exterior and spacious cabin, it does not hold its resale value well.
- Coming in with a 43.0% depreciation rate over five years, the GMC Sierra 1500 does depreciate a little bit more than the average truck. Thus, making it 4th on this list.
- #3: The Ram Pickup 1500
- 5-year depreciation average, 45.2%
- The Ram Pickup 1500 is not as well known as other vehicles because Ram as a manufacturer is not as well known as Chevy or Ford.
- However, their pickup trucks are actually great cars and they do have a loyal fan best.
- Coming in with a 45.2% depreciation rate in five years means that their resale value depreciates more than the average truck but less than the industry average.
- #2: The Nissan Titan
- 5-year depreciation average, 45.9%
- The Nissan Titan makes it to number two on this list with its high rating of 45.9%.
- When it comes to a full-size pickup truck, the Nissan Titan is not a bad choice. It has a strong V8 engine that can easily yield 400 HP. It also has a payload of 2,500 pounds which is quite excellent.
- However, the reason the Nissan Titan’s resale value is so low could be because it lacks a strong towing capacity.
- After all, the Nissan Titan is marketed as a pickup truck but at most, it can only pull 11,000 pounds which is not that impressive when compared to its competitors.
- #1: The Ford F-150
- 5-year depreciation average, 46.9 %
- Making it to number one on our list, we have the Ford F-150.
- Here is where the irony comes in. Why would a best seller be number one on this list?
- Well, the answer is in the question actually. Because the Ford F-150 is the best selling pickup truck, it also depicts the most! Why? Because there is such high demand for it, Ford keeps reproducing more and more each year. Thus, making it abundant and when a truck is abundant that means there is no need to buy it used.
Despite the fact that the Ford F-150 has such a high depreciation rate, does it mean that people will stop buying it? Absolutely not. In fact, this is one car that will continue this cycle for a long time until buyers no longer want it for whatever reason or Ford decides to discontinue it.
It does not look like either of those options will occur so if you love your Ford F-150, do not let its depreciation value scare you.
Why Do Some Trucks Hold Their Value More Than Others?
Why some cars hold their resale value while others do not depend on one word: depreciation. What is depreciation you ask? Depreciation is how much the value of your car will decrease after you drive it out of the dealer lot.
The moment you drive your vehicle out of the dealer lot, its value has already started to decrease.
We understand how frustrating that must be that is true for every single model, so do not feel too distressed over it.
You will want to look at the five-year plan for the resale value of your car before you buy it. Or you can do this with the car you currently have and are thinking of selling.
Some owners love their car but have to sell it because they are moving or are no longer able to care for it due to other obligations. Or maybe, they do not drive it as much as they used to. The resale value refers to what your vehicle will be worth when you try to sell it or trade it down the line.
Please keep in mind that your vehicle’s depreciation depends on these three factors: fuel, maintenance, and insurance.
Also, trucks and bigger cars do not hold their resale value, as well as smaller sedan cars and that, is just how it is. It does not mean that they are not great cars but the demand for smaller vehicles is just higher.
Why It is Important to Know
For some people, the resale value of their car does not matter to them because they have no plans on selling their cars. For others, it matters the most to them because they want to get as much as a profit back as possible.
Most people are in between they want to know how much their car is worth, resale wise, but they will not buy a car they do not want simply because of the resale value.
If your truck is on this list or if the truck(s) you have been wanting is on this list, do not get discouraged. A truck not holding its resale value does not mean that it is a bad truck. However, if resale value is the most crucial aspect to you, then you might want to avoid the trucks on this list.
It is also important to note that just because a car is very popular or it is a best seller does not mean that it automatically has a resale value. A lot of fans were probably surprised to find out that the Ford F-150, one the most well known and well-sold trucks on the market, was #1 on the list of trucks that depreciate the most. Why? Because why would a truck that people continue to buy year after year not hold its value?
It is a catch-22 if you think about it but a good rule of thumb to remember is: the more popular a car is, the more it will get manufactured, the more it will get manufactured, the more of they will be available; hence, they are not so rare anymore.
Why would anyone want to buy a used Ford F-150 when they can easily find it on the market brand new?
With that said, cars that are limited edition whether it because of color or a certain feature does sell well. Or maybe a car company decided to make a set of cars that did not sell well with the general public but there are certain groups of people that do like it.
However, since it did not sell well that means that the model probably did not get manufactured again. So in turn, whatever is out there is all that will be out there; hence, making it rare. Anything rare, people will want.
All in all, resale value is important but it should not be the end-all, be-all of the decisions. We hope you found this article useful and be sure to pass it on to a friend if they have been wondering about truck depreciation.