Toyota RAV4 Resale Value: Do They Hold Their Value? What To Know
Photo by Krish Parmar on Unsplash
Toyota, a globally recognized automobile brand, has long been synonymous with reliability, consistently delivering vehicles known for their durability and high performance. Renowned for models like the Camry, Corolla, and Prius, Toyota has established a reputation for providing dependable transportation. Simply put, if you want a reliable and long-lasting vehicle, it’s hard to go wrong with Toyota.
However, an often understated aspect of this brand is its remarkable ability to retain value over time. Unlike many other vehicles, Toyota’s are known for their enduring resale value, making them a wise investment for consumers. This aspect further enhances Toyota’s appeal, reinforcing its status as a prudent choice for buyers who value reliability and financial savvy.
Is that true for Toyota’s best-selling SUV, the RAV4?
Today, we talk about the Toyota RAV4 resale value. Can it hold its value over time? We give you the scoop below.
Toyota RAV4 Resale Value
On a high level, the Toyota RAV4 holds its value very well, especially compared to its segment rivals. CarEdge says the Toyota RAV4 is one of the top models for value retention – a consistent top 20 at years 3, 5, and 7 of depreciation.
The Toyota RAV4 is known for its reliability and cost-effectiveness, and after five years, it only depreciates by 21%. This means it maintains a resale value of approximately $27,757, making it one of the top vehicles to retain its value, especially within the Toyota lineup. The RAV4 has a substantial residual value, which means that it holds onto its value even after several years.
For example, after one year, the RAV4 retains 87.33% of its original value; even after ten years, it still holds onto 50.63% of its original value. Choosing to buy a two-year-old used RAV4 could save you $5,270 compared to purchasing a new one while still providing a vehicle with a significant useful life remaining.
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Used Toyota RAV4 Buyer’s Guide (Powered by CoPilot Price Pulse Tool)
For this section, we examine some used models of the Toyota RAV4 and see how it fares in the used car market. We used our handy Price Pulse Tool to gain several vital insights into the RAV4’s resale value.
For this example, we used the Price Pulse tool to evaluate the 2018 Toyota RAV4’s market performance and resale value, and we found some interesting things:
- Price Premium: The 2018 Toyota RAV4 is in hot demand, selling for $3,406 more than initially predicted. Consumers want this car, probably because it’s known for being reliable and long-lasting. Plus, it seems like right now, used cars like the RAV4 are keeping their value well, sometimes even worth more than the projected values.
- Market Trends: Based on the results of the tool, the current market price for the 2018 RAV4 is $23,253, which is higher than the original price forecast. The market prices for RAV4s from 2016 to 2020 also show a consistent price premium, which is an excellent sign that these models maintain their value well over time.
- Tip for Car Shoppers: The Toyota RAV4 seems to be a smart pick if you’re thinking about the future. It’s doing great on the used car market, selling for more than you’d expect even years later. That means it’s not just a car you’ll love to drive; it might also give you more bang for your buck if you decide to sell it down the road.
- Buying Advice: CoPilot’s Price Pulse is a helpful tool that can guide you on the best time to buy a car. It provides green checkmarks that indicate when the market prices are decreasing. For instance, for 2018 Toyota RAV4s, the market prices have dropped by $1,860 from the peak. However, it’s advised to be cautious as prices may still decline in the medium term. Thus, it might be worth it to wait for a bit.
Overall, If you’re worried about your car losing its value, the Toyota RAV4 might just ease those fears. Unlike most cars that lose value quickly once they leave the lot, the RAV4 keeps its worth for years, even selling for more than expected. And it’s not just a one-year wonder; models from 2016 all the way to 2020 have been fetching good prices in the used car market. That’s a track record you don’t see with many other cars.
THE TOYOTA RAV4 PROS AND CONS
We discuss the Toyota RAV4 pros and cons. What are the qualities of this SUV that made it popular? What are the potential downsides of owning a RAV4?
Toyota RAV4 Resale Value VS Competitors
In the SUV segment, the Toyota RAV4 holds a solid position when it comes to resale value, but how does it stack up against its nearest competitors?
- Hyundai Santa Fe: As per iSeeCars, the RAV4 outshines the Hyundai Santa Fe in terms of value retention. After five years, the Santa Fe depreciates by 50%, while the RAV4 only loses 34.7% of its value. This means the RAV4 holds an additional 15.2 percentage points in value over the Santa Fe.
- Jeep Cherokee: Compared to the Jeep Cherokee, the RAV4 also maintains its value better. The Cherokee depreciates by 41.7% over five years, while the RAV4’s depreciation is lower at 34.7%. Therefore, the RAV4 retains 6.9 percentage points more of its value than the Jeep Cherokee.
- Honda CR-V: In the hybrid SUV segment, the Toyota RAV4 faces stiff competition from the Honda CR-V Hybrid. However, after five years, the RAV4 Hybrid retains 55.8% of its value, slightly higher than the CR-V Hybrid’s 55.2%. Although the difference is insignificant, it still indicates that the RAV4 is better at maintaining its value over time than its closest competitor.
- Toyota 4Runner: It’s worth noting that the Toyota 4Runner retains an even higher percentage of its value than the RAV4. After five years, the 4Runner retains 75.3% of its value, which is nothing short of remarkable. Despite not being as new or fuel-efficient as the RAV4, the 4Runner is highly regarded for its off-road capabilities and ruggedness. This puts the RAV4’s value retention into a broader context.
As you might expect, the Toyota RAV4 resale value is impressive, especially compared to its competitors. However, it’s hardly the most reliable model within Toyota’s lineup.
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