Toyota, Lexus Retain Highest Value of Pre-owned Cars Up North
According to Canadian Black Book, a four-year-old vehicle in Canada retains 57% of its value, on average.
It’s a pretty widely known fact that the second a consumer purchases a new vehicle and drives it off the lot, the vehicle’s value takes a big hit. That devaluation continues during the ownership period, tapering off as the vehicle continues to age. However, there is some good news for folks who purchase a new over a pre-owned vehicle. According to The Globe and Mail, a recent report by Canadian Black Book–an automotive analytics company similar to Kelly Blue Book–depreciation on recently purchased vehicles is not happening as quickly. In fact, new rides are retaining their value now more than ever. Topping the list in the Great White North is Toyota and Lexus.
Brian Murphy, Vice President of research and analytics for Canadian Black Book tells The Globe and Mail that vehicle values in Canada have been steadily rising for the last 10 years or so. According to Canadian Black Book, the average value of a 4-year-old vehicle is now 57% of what it cost new. Toyota and Lexus are the automakers boasting the highest values. Average values are up from 2018 and 2019 when they were at 52% and 53% respectively.
The Toyota Tacoma pickup ranked highest on the list. For example, a 2016 Tacoma retains an impressive 77% of its value. Tacoma has won the Best Small Pickup Truck award from Canadian Black Book for 11 years in a row.
According to the article, prices for new vehicles in Canada have risen over the last few years. That, in turn, has made used vehicles more attractive for a larger swath of the buying public.
“We read these articles about higher levels of consumer indebtedness, and certainly if you buy a four-year-old car, you’ll only be paying 57% of what you’d pay if you’d bought it new,” says Murphy. “That’s big savings on a big ticket item.”
Recently, the Lexus CT200h, Lexus GX460 (and several Toyota models) won their segments in Canadian Black Book’s 2019 “Best Retained Value” Awards. This is definitely good news for Lexus owners and potential buyers. Hopefully this trend will continue, we’ve certainly seen Lexus grab accolades for its resale value. U.S. consumers will likely experience a similar increase in their vehicle’s values. Murphy also points out the importance of depreciation.
“When you’re considering buying a new car, think about depreciation,” Murphy says. “A lot of people think that gas and insurance and repairs are the No. 1 cost of car ownership, but it’s not – it’s depreciation.”
It’s definitely wise to do a little research when it comes to the potential depreciation of that sparkling new car, truck or SUV you’ve got your eye on.
Photos: Lexus, Toyota
