The 2023 Truck Model That Has A Stunning 73.1% Resale Value

Most new cars depreciate quite rapidly, beginning with the minute they're driven away from the dealership. According to Kelley Blue Book, new cars depreciate roughly 30% over the first 2 years, and an additional 8-12% every year after that. That equates to a whopping 55% drop in value after just five years, the inverse of which is a 45% resale value. To put that figure into perspective, a new car that costs $40,000 will be worth just $18,000 after 60 months of ownership.

Buying a brand new car is often not exactly a savvy financial move. However, reliable transportation, the latest safety features, and a factory warranty to cover repairs is a necessary evil for some Americans. With that said, doing some research in advance of buying your next car could lead to a smarter choice. Vehicles that depreciate more slowly than the average will deliver a better chunk of remaining equity when it comes time to sell or trade it in toward your next new vehicle.

One such vehicle that holds its value famously well is the Toyota Tacoma, a midsize pickup truck that's been around since 1995. Many of these trucks have racked up hundreds of thousands of miles without incident, with one particularly extreme example even accumulating more than 1.6 million miles on its odometer — a testament to its durability. In a 2023 report about trucks with high resale values, Motor Trend predicted that the then-new 2023 Tacoma would retain an impressive 73.1% of its original value after five years of ownership. 

Ironically, Motor Trend's opinion of the 2023 Tacoma — the third generation of that particular model — is that it's reliable, but also dated, cramped, and has poor fuel economy. That makes sense because the third-gen Tacoma debuted back in 2016, which is a long time without a significant redesign. Moreover, some aspects of the 2023 Tacoma, like its antiquated rear drum brakes, date all the way back to 2005. One other downside to such a long, plentiful production run is that its tailgate is one of several popular (and expensive to replace) parts that thieves target. 

Still, it's the durability, reportedly low maintenance costs, and let's be honest, the Toyota nameplate, that trumps the midsize truck's shortcomings in the eyes of buyers. Toyota vehicles have a high resale value in general. Some models, like the compact Corolla sedan, retain their value even better than the Tacoma pickup. According to some industry experts, brand new Toyota Corollas are forecast to be worth 81.1% of their original price after five years, while the Tacoma's SUV cousin, the 4Runner, is projected to retain 75.1% of its value over the same period of time.

If you need a pickup truck, buying a late-model Toyota Tacoma can be a wise step toward capital preservation — as well as can be expected for a depreciating asset like a car or truck, anyway. But it turns out that options and trim level can make a fairly significant impact, too. Motor Trend advises purchasing the premium trim levels such as the Toyota Racing Development (TRD) Pro, TRD Off-Road, or TRD Sport for desirability. Likewise, you'll want to choose what Toyota calls its "double cab," which is a four-door crew cab version that seats five adults.

Oddly, Tacomas equipped with a manual transmission hold their value better than their automatic transmission counterparts. However, manual transmission-equipped vehicles make up less than 1% of new vehicle sales and fewer than 20% of drivers know how to operate one. Therefore, the fact that three pedals are so valuable in the Tacoma does seem slightly odd except to assume that buyers who want a stick shift, really want it. A TRD-optioned, manual transmission, crew cab Tacoma was predicted to be valued at 80% of its original price after serving the original owner for five years. 

It's also worth considering that an all-new clean-sheet redesign of the Tacoma is now on the market — its fourth generation. If past performance is at all indicative of future results, the 2024 and up iteration of Toyota's incredibly successful midsize truck should continue to insulate its owners from the largest blows of depreciation.