If you’ve been watching the used truck market, you may have noticed that some Toyota pickups are not just retaining their value lately, but actually appreciating in value as second-hand models. The 2021 Toyota Tundra and the 2023 Toyota Tacoma are both selling well above their MSRPs at the moment, owing largely to the launch of new generations with new engines that some consumers aren’t embracing.
The Tundra switched from a naturally aspirated V8 to a turbocharged V6, and the Tacoma went from a naturally aspirated V6 to a turbocharged four-cylinder. Now, the Toyota Highlander is about to see an even more dramatic reinvention by going fully electric for its fifth generation. Could this powertrain change have the same effect on used Highlander prices as when the new engines arrived in the brand’s pickups? Let’s dig in and find out.
The Electric Highlander Is A Bold Move
2027 Toyota Highlander EVToyota
Going all-electric with a 25-year-old nameplate would be a big step for any automaker, but that goes double for Toyota. The brand is well-known for its earlier hesitance to invest in EVs. With the recent downturn in the electric segment, Toyota has been fully vindicated in its decision to bet big on hybrids, so this is an especially bold strategy after seemingly having already won the race for battery power.
Our goal with the new Highlander was to develop a BEV that fits customers’ lives and brings a smile to their faces with sharp acceleration feel and a quiet ride.
– Yoshinori Futonagane, 2027 Highlander Chief Engineer
That doesn’t tell us much about how the electric Highlander fits into the brand’s overall market strategy. Doesn’t every family SUV try to provide sharp acceleration and a quiet ride? When we look at the recent sales numbers for the current Highlander, especially compared to the long-wheelbase Grand Highlander, since it was released for the 2024 model year, the decision starts to make a lot of sense.
Toyota Highlander US Sales
Toyota Grand Highlander US Sales
2024
89,658
71,717
2025
56,208
136,801
By the end of 2025, the Grand Highlander was selling around two and a half SUVs for every one Highlander sold. Given the short timeline, from the launch of the larger SUV for the 2024 model year, to the retirement of the gas-powered Highlander for the 2027 model year, it’s not hard to guess that the plan all along was to replace the smaller SUV with the bigger one. The company could then repurpose the Highlander name for a new vehicle.
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Even so, the Grand Highlander’s success has been nothing short of explosive, and we’d bet that it’s far surpassed Toyota’s loftiest expectations.
Electrification Will Make For A More Powerful Highlander
2027 Toyota Highlander EVToyota
2026 Toyota Highlander (2.5 Turbo)
2027 Toyota Highlander (Dual Motor)
Power
265 hp
338 hp
Torque
310 lb-ft
323 lb-ft
0-60
7.2 Seconds
5.5 Seconds
When we look at the performance specs on the new Highlander, we can’t help but feel this was the right move, simply from a “hey, let us drive one of those” perspective.
We’ve discussed, more than a few times, how electrification democratizes horsepower. For gearheads and car guys and gals, this brings million-dollar supercar-tier performance specs down into the realm of affordability in vehicles like the Tesla Model X Plaid. Electrification’s effect on family cars is just as pronounced, though, shaving nearly two seconds off the Highlander’s takeoff and bumping the horsepower without burning any extra fuel.
Could The Switch To Electric Bump The 2026 Highlander’s Prices?
2026_Toyota-Highlander_0007Toyota
MSRP
Trending Price
5-Year Appreciation
2021 Toyota Tacoma SR5
$26,400
$27,621
4.5%
2021 Toyota Tundra Limited
$42,840
$44,213
3.1%
Based on recent trends, it’s easy to predict that dropping the turbo and hybrid engines and going electric-only could cause the 2026 Highlander to explode in value. After all, that’s exactly what happened when the Tundra and the Tacoma each dropped a couple cylinders. Let’s see how that affected their respective values, using trending price data as of late May 2026, for a mid-range 2021 model.
The appreciation for either of these pickups isn’t exactly retirement money. Still, they’re both selling for noticeably more than their brand-new prices from five years ago, largely due to the engine switch from one generation to the next. But that’s not the whole story.
The New Tundra And Tacoma Both Made Bad First Impressions
2022-2025-toyota-tundra-i-force-max-trd-pro-front-3_4-2Toyota
The Highlander appreciating in value isn’t outside the realm of possibility, but if you wanted to put some money on the line, we would bet against it. There will certainly be some drivers who aren’t happy with their favorite SUV going all-electric.
Still, the Tundra and the Tacoma didn’t just launch with unpopular new powerplants; they launched with a lot of reliability problems, as well. To go over some of the Tundra’s most concerning recalls and dependability hiccups for the relaunch.
- The 2022 Tundra was recalled twice for debris in the engine, once in 2024, and again in 2025, with the latter recall affecting 126,691 Tundras and Lexus SUVs, dated 2022 to 2024.
- Problems persist deep into the third generation, with engine recalls still rolling out for the 2024 model.
- Complaints about the 2022 model’s engine remain common, with a December 2025 complaint on the NHTSA website reading, “both of my turbos on my truck failed.”
- Major recalls go beyond engine problems, with 168,179 Tundras, dated 2022 and 2023, being recalled for damaged fuel tubes resulting in potential fuel leaks.
- The 2022-2024 Tundra was included in a recall affecting 280,663 units due to unexpected vehicle movement caused by glitches in the transmission control software.
As for the 2024 Tacoma, the problem mainly comes down to rough shifting, and what was perceived as a slow response from Toyota.
So, reason number one why the new Highlander is unlikely to create a spike in demand for the old one? You don’t have to worry about transmission problems or metal shavings in the main bearings when you’re going electric. EVs are not without their dependability issues, but they’re immune to all those first-year hangups you get when putting a new combustion powertrain into production.
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Reason number two: the Grand Highlander will remain combustion-powered into the foreseeable future, and it’s already outselling its little sibling nearly three-to-one. This means you don’t have the scarcity factor that drives up prices for used Tacomas and Tundras. If you miss out on buying a new, gas-powered Highlander, you can just get a slightly bigger version of the same SUV.
Is This The Perfect Time To Buy A Toyota Highlander?
2026 Toyota Highlander Rolling ShotToyota
If you’re not interested in driving an electric SUV, then yes, this is absolutely the perfect time to buy a Toyota Highlander. Just not as an investment.
The Highlander is an excellent SUV. J.D. Power rates the 2026 model at 82/100 for Quality & Reliability; it should cost only around $489 a year to maintain, according to RepairPal, and a turbocharged 2026 model delivers 24 miles per gallon, which is pretty good for a three-row SUV.
We would say that the odds of the Toyota Highlander ever earning you money on the purchase price are pretty slim, but the vehicle is already a fairly slow depreciator. According to CarEdge, the Highlander should still be worth about 60% of its MSRP after five years on the market. Our own price tracking tool puts a $35,085 2021 Highlander XLE V6 at $25,233 after five years on the road.
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Even when used car prices are on the upswing, treating a car like an investment is always a tricky thing, anyway. Even those who bought brand-new Tacomas and Tundras only to see prices tick upward aren’t really making a profit when you bring the cost of ownership into the equation; they just get a nice head start on the trade-in value of their next vehicle.
So, we can easily recommend the Toyota Highlander because it’s one of the best family cars on the market right now. As far as investments go, we’d advise you put that money into remodeling your kitchen or something.
Sources: Toyota, NHTSA, CarEdge, RepairPal.
