Depreciation rates and changes in value are something many truck owners want to know. It's useful information to be familiar with the market and how to get the best deals— as a buyer, and a seller. Since the Ford F-150 is a popular truck, a popular question is, “How much does an F-150 depreciate?”
The F-150 is the most sold vehicle in the United States. Along with its popularity, it has a reputation for being a robust and all around reliable truck. That being said, buyers can always rely on the fact that they can buy a used F-150 at a low price. Most of a new F-150’s loss in value occurs during the first 5 years, an average of 44%. On average, the F-150 depreciates at a rate of 11% per year. There is variation in depreciation rates because the market can be a fickle thing, and because there is variation between models. Obviously something like COVID-19 at the start of 2020 is also going to cause a wild swing in prices and potentially demand.
Why does it matter that the F-150 loses 44% of its value in the first 5 years? A number of other trucks actually depreciate far less than the F-150. This shouldn’t discourage buyers forming owning and F-150; it’s even a reason to buy a used one because you know you can get a good price on a used truck with a reliable reputation. It is curious that such a popular and reliable truck depreciates more than similar trucks. There are a number of reasons and factors to consider when determining the value of a used truck.
The model of a vehicle is important, but the year that it was made matters too. The design and build of the F-150 improves or changes every year, and those various changes age better or worse than others. If you’ve read one of our articles outlining the various model years of the F-150, or on some of the common issues, you’ll know that some vehicles age better than others. See what model year you have, and do your research about it (this is a handy tool), to see what it’s *really* worth.
Mileage is one of the most important and also the most stressful metrics when evaluating whether a vehicle has resale value to anyone other than a junkyard. Every mile a vehicle has been driven the fewer miles it has for the future. As a general rule of thumb, the more miles on the vehicle, the lower the resale value.
Maintenance history is another important factor in determining a vehicle’s value. Well-maintained vehicles last longer, perform better, and have better resale value. Whether or not your vehicle has been well-maintained affects its value, and getting it inspected and reviewed by a mechanic will go a long way towards improving its resale value.
Whatever features make a truck less attractive to buyers the first go-around can end up influencing resale value too. Some potential features that can raise the value of a vehicle include:
- Aluminum wheels
- Leather interior
- Navigation systems
- Custom additions
High quality backup cameras are a solid investment to increase the value of your vehicle, especially if it doesn’t already have one. You can see how to install backup cameras in this blog, and browse our inventory here.
Despite the F-150 being one of the most sold vehicles, it is not known for holding its resale value. This is great for buyers, and not so great for sellers. Its value may drop at about 11% per year, but you can expect it to keep running at least. If you were looking to trade in your old F-150 for a newer one with more bells and whistles, and have found yourself disappointed in the price, instead consider upgrading it by installing a high quality backup camera. Got Questions? Just ask.