Do Toyota Camrys Hold Their Value? What To Know About Resale & Depreciation
The Toyota Camry remains a sales champion year after year. Its blend of sensible affordability, quality construction, and family-friendly functionality has been a winning formula since the early 1980s. In fact, the Camry has been America’s most popular passenger car (excluding SUVs and trucks) for several years. In 2022, the automaker sold almost 300,000 examples, according to Car and Driver. For shoppers contemplating new or used Camry ownership, a natural question arises. Do Toyota Camrys hold their value?
It’s a logical inquiry, even if you already have a Camry in the garage. With Camrys rolling out of Toyota’s Kentucky factory and millions on the road, it’s only natural to want to learn about the car’s resale value down the road. To get to the answer, we’ll unwind the mysteries of market values, explain how this applies to the Toyota brand (and the Camry specifically), and examine what affects depreciation.
Understanding the Basics: Do Toyota Camrys Hold Their Value?
Before getting into the nitty gritty of Toyota valuations, it helps to understand broader new car market economics. Auto manufacturers set initial pricing based partially on projected resale values many years later (there are other factors, like production costs and competitive vehicles). Leasing companies and lenders also build residual value forecasts into lease payment calculations and loan approvals.
Here’s the catch: most new vehicles shed value when they leave the dealership. The depreciation rates gradually stabilize but are still a factor for the remainder of the vehicle’s functional life. Why the plunge? Newer models, improvised technology, mileage, and wear all play roles. Consumer demand and reputation for reliability (or lack thereof) are also part of the calculations.
More recently, another element has impacted depreciation and resale values: a used car market still reeling from high prices. The spike results from vehicle shortages following pandemic-related auto plant shutdowns and supply chain issues for key components, like semiconductors. Consumers who usually would buy new turned to used cars, causing prices to rise significantly and second-hand car availability to tighten. We’re still feeling the effects today.
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According to CoPilot Price Pulse, the typical Toyota (among all models) sells for $28,731, which is $6,488 (or 29%) higher than in pre-pandemic times. If COVID-19 never happened, the average Toyota would go for $22,243. Fortunately, prices are down from the July 2022 market high, when the average Toyota sold for $30,842. At the same time, market values for the Camry have also declined. CoPilot Price Pulse data shows that the typical pre-owned Camry costs $2,877 less than during the market peak.
Beating the Odds: Do Toyota Camrys Hold Their Value?
CNBC reports that the typical five-year-old vehicle lost 33% of its value in 2022. That may appear significant, but the average depreciation in 2021 was 40%, indicating how market conditions affected valuations. However, the numbers don’t hit the Toyota Camry so hard. A forecast from caredge.com indicates that depreciation for a five-year-old Camry is 24%.
What does this mean in practical terms? Current Camry owners benefit from a higher resale value, but Camry shoppers will have to pay more.
A Brief History of the Toyota Camry’s Reputation
Toyota launched the first Camry in America for the 1983 model year, as this Japanese automaker began making inroads courting family sedan buyers with its affordable and practical offerings. As engineering and technology improved across eight generations (the ninth is on the horizon), the Camry built an admirable reputation for mechanical durability, cost efficiency, and reasonable depreciation.
No one ever turned their head and said, “Wow, look at the Camry.” But this focus on function over form helped cement the Camry’s reputation as bullet-proof transportation and helped drive Toyota to global sales dominance.
TOYOTA CAMRY PROS AND CONS
We talk about the Toyota Camry’s pros and cons. What makes this midsize sedan a good purchase? What are the flaws that will cause you to pass on the Camry?
Key Reasons: Do Toyota Camrys Hold Their Value?
As mentioned, Toyota has built a reputation for building dependable cars (like the Camry) for over half a century. Being known for dependability is part of the automaker’s brand perception. In turn, its vehicles (new and used) are highly sought after because prospective buyers are less concerned about repairs with a Camry.
Here’s what also goes into the Toyota Camry’s above-average resale value:
- Toyota is known worldwide for its advanced production methods. Its manufacturing is based on the Japanese concept of “kaizen,” a philosophy that helps ensure maximum quality, continuous improvement, and minimal waste.
- Using shared platforms and components ensures consistent reliability without expensive reengineering efforts. The Camry shares elements with the Highlander, Avalon, and some Lexus models.
- Toyota takes a conservative approach to mechanical systems for its cars. This proven technology may not be flashy, but it works, usually without trouble or expensive repairs.
- Recognizing that the Camry is often used for family transportation, Toyota ensures that the Camry performs well in crash tests and reflects the latest safety standards.
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Strategies to Preserve Your Camry’s Resale Value
Well-thought-out engineering and strong build quality help preserve a Toyota Camry’s resale value. However, these characteristics only go so far. Owners also play a part in long-term dependability and modest depreciation.
Consider these tips to protect your Camry’s value over the years:
- Follow all factory-recommended preventative maintenance requirements, including oil changes and tire rotations. Not only does the work need to be performed, but it should be completed in accordance with the specified service intervals. Check the owner’s manual. In addition, retain all records and receipts so the car’s repair and maintenance history can be documented.
- Regularly wash and detail the car to uphold appearances. At the same time, address minor cosmetic issues (paint chips or interior stains) so the car looks as good as it runs.
- Avoid modifications that are difficult or expensive to reverse. For instance, customizing the engine or exhaust system may not appeal to the next prospective owner.
The Takeaway: Do Toyota Camrys Hold Their Value?
It only takes one word to answer the question: do Toyota Camrys hold their value? Yes. That’s thanks to a decades-long standing for quality, affordability, and reliability. This family favorite may not be the most exciting vehicle on the road, but its lack of thrills is made up for by dependability and proven engineering.
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