It’s a story that’s been told a thousand times, but one that’s important to understand and painfully true: cars are getting way more expensive. Buyers today are spending in excess of $50,000 on average when the time comes to upgrade to a new model. That’s a lot of money, no doubt, and so making the right decision on a financial level is hugely important.
There are two ways to go about getting the best bang-for-buck when it’s time to buy a new car. One choice is to get something cheaper because there are still sub-$25,000 options out there for families. The other option is to purchase something that can retain that $50,000 investment as best as possible. Those more interested in the latter route would be best directed into the nearest Toyota showroom, as two SUVs with the brand’s stylized T-shaped badge on their grille are proving to be remarkable performers when it comes to resale.
Both The RAV4 And 4Runner Are A Safe Place To Park Your Money
iSeeCars has posted the results from a recent study, tracking the five-year resale figures of various mainstream and luxury models. Among the overall top performers are the obvious bets, including various Porsches and the Corvettes, but that’s hardly a surprise. Plus, it’s not really helpful advice for the average motorist, who’s really more concerned with a sensible daily driver rather than a $100,000 weekend toy.
What should pique their interest, though, is the resale performance of Toyota’s humble RAV4 and adventure-ready 4Runner. The former is reported to lose only 25.2% of its original value within the first five years of ownership. The latter comes in only fractionally behind, at 25.5%. So, iSeeCars is indicating that owners who bought a brand-new RAV4 or 4Runner in 2021 could expect to net a full three-quarters of that original cash back in their pockets, should they choose to sell today.
To place some dollar-and-cents figures into the equation, Toyota charged $26,350 for an entry-level RAV4 in 2021 and $36,795 for a base 4Runner. Based on average depreciation results, which presumably imply average miles between 10,000 and 15,000 per year, a solid service history, and good overall condition, those Toyotas would still be worth $19,710 and $27,412 today.
By only dropping around 5% of their original value each year, for the first five years, these two Toyota SUVs really do find themselves in a class all of their own when it comes to SUV residuals. But to see just how much better their residual value performance is, it’s essential to consider just where the rest of the playing field is.
These Two Toyota SUVs Put The Rest Of The Market To Shame
Toyota RAV4 exterior badgeToyota
The same study also provides an average five-year depreciation figure for the SUV segment of 44.9%. So, give or take a few percentage points, the Toyota RAV4 and 4Runner retain 20% more of their original sticker price than the rest of the SUV segment. As for the midsize SUV segment, average depreciation is 47%, highlighting even further how remarkable the two Toyotas are.
It might seem strange, at first, that these two SUVs are leading the pack. They certainly aren’t exclusive or particularly rare, so it’s not as if the supply of either would be limited. Instead, Toyota’s remarkable reputation for reliability is spearheading the drive for their desirability, in addition to their proven track record for low ownership costs and rugged dependability.
CarEdge data shows a RAV4 would cost around $388 per year in repairs and maintenance, which is hardly more than a dollar a day, and that’s a figure thousands of motorists love the sound of. As for the 4Runner, its naturally aspirated 4.0-liter V6 has proven to be a durability king over the years, whereas the hybridized four-cylinder powering its successor has yet to develop that reputation. Given the model is geared toward off-roading and adventure, reliability and durability are core to its appeal, hence why the proven fifth-gen model is retaining value while the latter car is still working on gaining the trust of buyers.
Luxury SUVs Shed Value Far Quicker Than Mainstream Models Like These
2023 BMW iX xDrive50 front 3/4BMW
The iSeeCars study also shows that, of the 25 worst-performing models across all vehicle segments, 24 of them are luxury and/or electric models. Bringing it back to SUVs, models like the BMW iX and Infiniti QX80, despite offering far more premium features and luxurious appointments than the value-focused Toyotas, lose 68.6% and 62.8%, respectively. That’s almost three times the level of depreciation of the RAV4 and 4Runner, which must make for a tough pill to swallow for those who purchased them new.
Luxury cars as a whole tend to perform quite poorly in terms of holding value. One factor is that they have further to fall, thanks to far higher sticker prices. Also, buyers tend to tire of them more quickly. As soon as something newer comes along, with more tech, more power, and more features, the appeal of the once top-flight model they purchased two or three years ago fades. Then, the original buyers move on to newer models, leaving the older cars to depreciate enough for used shoppers to find them an appealing enough gamble.
And That Makes For A Very Interesting Used Market
2021 Infiniti QX80 front angle in whiteInfiniti
What it means, though, is that shoppers who prefer to spend their hard-earned cash on a used example now have some pretty tantalizing options available. In 2022 (the iX didn’t arrive until the ’22 model year), a brand-new BMW iX would have set buyers back a minimum of $83,200 before dealer and destination fees. A 2021 QX80 commanded $69,150. Fast-forward to the present day, and just look how far the mighty have fallen:
BMW’s 516-horsepower iX now sells on average for just shy of $39,000, as shown by data collated by the CarBuzz Marketplace, and it’s a similar story in the QX80’s case, too.
Infiniti’s luxury-lined, 4.6-liter V8-powered, 400-horsepower three-row full-size monster of an SUV, which is also remarkably reliable and great on the rough stuff, sells for just north of $25,000 with a few years behind it and some miles on the odometer. Regardless of how solid Toyota’s reliability reputation is, or how cheap the RAV4 is to maintain each year, it’s impossible to deny the bang-for-buck available from Infiniti’s heavily depreciated QX80.
Buyers looking at a new RAV4 or 4Runner, seeking long-term durability and a rock-solid investment, might have their eyes swayed by BMW’s ultra-slick electrified iX, for right around the same money as a base-model RAV4. Whereas those considering a used RAV4 or 4Runner might prefer to pick up a QX80 for the same money instead, benefiting from someone else taking the brunt of the depreciation hit.
These SUVs Are The Closest Thing To Inflation-Proof Transport On The Mainstream Market
2020 Toyota 4Runner TRD Pro finished in white with black interiorToyota
In today’s world of ever-rising prices, the RAV4 and 4Runner SUVs are like a godsend to many motorists. They allow buyers to get hold of something modern, reliable, and practical for a fair price, and then when it comes time to sell, they return a healthy portion back to the original owner, while other marques instead reveal they have sapped away at the original investment at an alarming rate.
All the while, those cost-conscious Toyotas have required little in the way of repairs, and needed very little outlay in the way of servicing, either. That really is the ideal picture of car ownership for many, and it’s an awful shame that it can’t be replicated by a wider selection of marques, truth be told.
What’s also up for debate is whether the RAV4 and 4Runner can repeat the same feat over the coming five years. So far, the new 4Runner’s hybridized four-cylinder powerplant has proven a sticking point for many buyers, and the complexity of the new, next-gen, and hybrid-only RAV4 may well place an ill-received fly into the evergreen SUV’s otherwise perfect resale-friendly ointment. Only time will tell, but for the time being, it’s unlikely many owners of 2021 model-year examples will be in a huge rush to sell and ‘upgrade.’
Base Trim Engine
2.5L Inline-4 Gas
Base Trim Transmission
8-Speed Automatic
Base Trim Drivetrain
Front-Wheel Drive
Base Trim Horsepower
203 hp
Base Trim Torque
184 lb-ft @ 5000 rpm
Fuel Economy
27/35 MPG
Infotainment & Features
9 /10
Sources: iSeeCars, CarEdge, Toyota.
