Trucks are good investments for a number of reasons, but one of the biggest reasons is that they tend to hold value better than other vehicles. That’s not to say that they don’t depreciate. Some trucks depreciate faster than others, for a number of reasons.
This article will run through some of the fastest depreciating trucks and the factors that influence their depreciation to give you a better understanding of the rates at which trucks lose their value. If you’re wondering how to improve the value of your truck we can help with that too. Camera-Source has only the highest quality backup cameras for all kinds of vehicles and the resources to help you install it.
As a general rule, trucks lose most of their value in the first 5 years. The largest increment is lost after the first and fifth years of ownership. The breakdown is generally like so:
- 20-30% the first year
- 10-15% the fourth year
- 40-50% after five years
Another way to think of the depreciation rate of trucks is how much of their value they each year on average, which is 15% to 25%.
Compare this with a typical car, which loses 50-60% of its value after 5 years, trucks typically retain more of their value for longer, depending on a number of factors.
What are the fastest depreciating trucks?
1. Ford F-150
The F-150, a classic workhorse of a truck, leads with a depreciation rate 47%, which is partly due to its popularity and availability of parts. There is no short supply of backup cameras for a Ford F-150 to increase the safety and comfort on the road.
2. Nissan Titan
The Nissan Titan comes in at #2, with a depreciation rate of 46%. Known for its smooth ride and towing power one of our universal cameras makes a great upgrade.
3. Dodge Ram 1500
The Dodge Ram 1500 is a powerful and popular truck, with a depreciation rate of 42-45% Its combination of interior comfort and impressive towing power make it great for road trips with a camper or trailer, and long trips with a camper are made easier with a good RV backup camera.
4. GMC Sierra 1500
The GMC Sierra depreciates at a rate of 43%, probably partly due to its popularity as one of the best selling trucks in the US. A number of cameras for GM are available that increase a Sierra’s value.
5. Chevy Silverado 1500
Similar in construction to the GMC Sierra 1500, this truck depreciates at a rate of 42%. It has trailed just behind the Ford F-150 in sales over the years, and is extremely versatile. Whether for commuting or working, there are many options for cameras for the Chevy Silverado to choose from.
6. Ford Ranger
This consistently reliable light-duty truck that’s nearly as popular as the F-150 depreciates at a reasonable rate of around 41%. As reliable and compact as it is, the Ford Ranger should have a compact and reliable backup camera.
7. Toyota Tundra
The ever-reliable Toyota Tundra depreciates at a rate of 36%. The Tundra isn’t the best selling truck on the market, but it’s sporty trim and powerful engine make it a popular choice for a little extra fun. Parts for a Toyota are readily available and the same is true for high quality Toyota Tundra backup cameras.
8. Nissan Frontier
The Frontier is nother Nissan truck that holds value reasonably well, depreciating at a rate of 37-40%. A Universal camera makes for a universally safe and comfortable ride for the Nissan Frontier.
9. Chevy Silverado 3500
The Silverado 3500 depreciates at a rate of 34%. It’s one of those great work trucks that hold onto their value pretty well, especially if it’s equipped with a reliable backup camera.
10. Honda Ridgeline
Not quite as popular as many other trucks, the Honda Ridgeline holds value well, depreciating at a rate of 38%. A universal backup camera is a great way to make the Honda Ridgeline more attractive to drivers.
11. Toyota Tacoma
The Tacoma depreciates at a rate of 32%. The Tacoma is a popular truck with decent fuel economy that makes you feel less guilty about wanting to drive it everywhere. Adding a backup camera for a Toyota Tundra is one of the best enhancements to its already impressive safety rating.
12. GMC Sierra 2500
Finally, at #12, the GMC Sierra 2500 depreciates at a rate of 30%. A backup camera for the Sierra is the only thing that could make the popular and reliable work truck even better.
What affects value and depreciation?
A number of factors affect a truck’s value and quickly it can depreciate, from the make and model of the truck, to the specifics of the individual truck itself. The market is always changing and so is the availability of parts, and so the value of vehicles fluctuates with the market.
Mileage is the big one when it comes to actual depreciation. The Kelly Blue Book value is a good guide, but as a general rule, the more miles you put on a vehicle, the less it will be worth. Keep the car’s mileage down, keep more of its value.
2. Fuel Economy
Fuel economy and the value of the vehicle is a two-pronged issue. First, poor fuel economy means spending more money on fuel over the lifetime of the vehicle, which means less overall money in your pocket.
Second, consumers are valuing good fuel economy more and more, meaning that vehicles that get better MPG hold value better and longer. Fuel economy is one of those things that depend on the market and consumer perception. More people are prioritizing environmental conservation and awareness, and reducing their emissions and air pollution.
3. Features & Preferences
Depending on the vehicle, more features equals more value. Whether those features are enhanced speed, power, safety features, aesthetics, or comfort. Like fashion trends, however, some of the features and options that come with a lot of vehicles are subject to change with the times. It might seem like a home run to purchase a vehicle with all the bells and whistles, but try to think long term and do your best to evaluate what the lifespan of those features will actually end up being.
Safety features not only increase the value of vehicles, and make them more desirable, they can also save you money on insurance. Features, like backup cameras and integrated navigation usually retain their value and make a truck more desirable because of the comfort and safety they provide.
The last big factor is the overall condition of the vehicle. Dents, dings, and scratches to the exterior or interior can put a dent in the dollars and scratch off quite a bit of the resale price. Investing in the maintenance of a truck is not only a good idea because it makes it last longer, it can also save money by preventing larger issues that result in expensive repairs.
How can you increase the value of your truck?
If depreciation rates have got you down, don’t let them keep you down for long. There are ways to help maintain the value of a truck, but it’s important to remember to enjoy the ride. If you’re looking to add a backup camera to your vehicle, or are more interested in repairs or upgrades, Camera Source is your one-stop-shop for backup cameras and backup camera kits. Get in touch with one of our customer associates, or start browsing our enormous collection of backup cameras today.