Truck depreciation

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1,677
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Southwest
Saw an article in the Truth About Cars.com that said that $40k + tricked up pickups depreciated only about $450 a year more on average than much cheaper sedans. No wonder we truck owners see ourselves coming and going. I checked. It's true. My no-option 2012 XL F150 has a couple thousand dollars higher resale value than a comparably (original msrp) priced Honda Civic of the same model year. Didn't expect that when I bought. Might look into a used Acura when the old Crown Vic gives up the ghost. I figure that the effect would be even more pronounced there.
 
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3,649
Location
Worst Case, Ontario
Originally Posted by CT8
Trucks are a better value for the dollar . They are much beefier.
Depends where on the depreciation curve you get them. Here, you can get a decent 10 year old car for around $3k. A $3k truck is going to be 15-20 years old if you want a crew cab and 4x4. A truck for under $5k here is going to have serious problems or be the model that no one wants. Even on construction sites, most trucks are crew cab short box now. No one wants regular cab trucks anymore. 15-20 year old truck is going to be $100 on gas a week easy. My 03 Jetta is probably worth $1000, has working A/C and is half that on fuel.
 
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6,264
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New England
Originally Posted by CT8
Trucks are a better value for the dollar . They are much beefier.
It's more about demand then build. Also Many people cannot afford new trucks but require them used price point to perform their profession. Compared to cars there is a rather limited selection of trucks to pick from helping resale.
 
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710
Location
central ga
also the brand of truck has a lot to do with it.the region of the country also has a lot to with it.as some brands are not well regarded in some areas.
 
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4,174
Location
N.C.
Originally Posted by jimbrewer
Saw an article in the Truth About Cars.com that said that $40k + tricked up pickups depreciated only about $450 a year more on average than much cheaper sedans. No wonder we truck owners see ourselves coming and going. I checked. It's true. My no-option 2012 XL F150 has a couple thousand dollars higher resale value than a comparably (original msrp) priced Honda Civic of the same model year. Didn't expect that when I bought. Might look into a used Acura when the old Crown Vic gives up the ghost. I figure that the effect would be even more pronounced there.
. If a middle of the road Civic depreciates $2,000 a year and a $40,000 pickup depreciates $2,450.00 a year, both still take a big hit for years to come. Not a lot to crow about here.
 
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17,302
Location
OH
Originally Posted by jimbrewer
Saw an article in the Truth About Cars.com that said that $40k + tricked up pickups depreciated only about $450 a year more on average than much cheaper sedans. No wonder we truck owners see ourselves coming and going. I checked. It's true. My no-option 2012 XL F150 has a couple thousand dollars higher resale value than a comparably (original msrp) priced Honda Civic of the same model year. Didn't expect that when I bought. Might look into a used Acura when the old Crown Vic gives up the ghost. I figure that the effect would be even more pronounced there.
There are a lot of Walter Mittys out there who want trucks. This was true in 2007 as well. Come the summer of four dollar gas in 2008 and then the economic collapse, all those Walts wished they'd bought Honda Civics instead since they couldn't sell their pickups for anything near what they owed on them and they struggled to pay for the fuel to run them. Dealers couldn't give trucks away, which made for a real buying opportunity for those with deeper resources. It happened before and will happen again within the next couple of years. Cheap fuel along with cheap borrowed money have powered the truck market, not any real need and certainly not based upon superior durability/reliability just as has been the case in the past. I also suspect that the depreciation numbers you cite aren't based upon actual retail prices for either the trucks or the Civics.
 
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21,534
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Apple Valley, California
Originally Posted by urrlord
also the brand of truck has a lot to do with it.the region of the country also has a lot to with it.as some brands are not well regarded in some areas.
Yep. I paid $3100 for my f250 6 yrs ago and I thought I was over paying a bit. But that same truck may sell for $5k back east.
 
Originally Posted by Chris142
Originally Posted by urrlord
also the brand of truck has a lot to do with it.the region of the country also has a lot to with it.as some brands are not well regarded in some areas.
Yep. I paid $3100 for my f250 6 yrs ago and I thought I was over paying a bit. But that same truck may sell for $5k back east.
Really no way to know how much a 30 year old rust free truck would sell for in the east. '87 daily drivers don't exist in my part of Pa.
 
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Worst Case, Ontario
Originally Posted by fdcg27
Cheap fuel along with cheap borrowed money have powered the truck market, not any real need and certainly not based upon superior durability/reliability just as has been the case in the past.
It's true, although gas prices got bad much earlier. I remember them spiking in the early 2000s as well. Trucks finally have amenities/interiors on par with cars now, they had pretty basic interiors until the mid 2000s. Trucks are also much closer to cars in fuel efficiency than they used to be. I think trucks are easy to sell when new and hold their value used. Remember when American cars had no resale*? That's why people buy trucks now. You are 100% correct about walter mittys, my office worker friend has a 2017 Ram 4X4 so he can visit his rural parents a few times a year.....yeah right! *Crown Vics and GM W bodies will always have resale on BITOG.
 

jimbrewer

Thread starter
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1,677
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Southwest
Well, I knew that trucks had a certain utilitarian value that supported prices a bit. I wouldn't expect to see that so much on the tricked up trucks. I agree with those who spot a market anomaly. This is fairly nuts. As a proud owner of a Ford truck, I can honestly say——sedans have a lot to commend themselves.
 
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28,129
Location
Regina, Saskatchewan, Canada
Originally Posted by jimbrewer
I wouldn't expect to see that so much on the tricked up trucks.
I would always exhibit caution with tricked up trucks (and cars). No, I don't want your fancy headlight conversion or oddball stereo install (and the electrical nightmares possible with both) or your silly lift kit. If those things are present, I would offer enough dollars less to get me back to original condition or fix the steering geometry or prevent the impending electrical fire.
 
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4,825
Location
Taiwan
Its observable here, but the market forces are different, since almost no one buys trucks as private transport. (Its actually illegal to carry more than 2 passengers in a commercially registered crew cab). Shinyness/newness confers FACE on the private car buyer, so (outside the aboriginal areas) old cars are scrapped. Commercial vehicles are bought to work, so old scruffy ones retain value
 
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Location
Southeast Texas
I own both, a 2005 Silverado Crew Cab (bought with 150K miles) and a 2017 Ford Fiesta for my wife, bought new, The Chevy truck is not depreciating much, but the Fiesta gets near 40 MPG. The gas savings offsets the cars depreciation, IMO.
 
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19,681
Location
Sunny Florida
Our 14 RAM has been solicited by both major dealerships here for them to purchase and resell. Not mass mailings but specifically addressed to us and offering what I felt was an amazing amount of money for a used truck. What a terrific problem!
 

JHZR2

Staff member
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44,667
Location
New Jersey
With the average household income in the USA somewhere in the $50k range, how buying expensive trucks makes sense for the average person makes no sense to me. But they have use, and people want them. Makes for a strong secondary market. Thus they depreciate slower.
 
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4,762
Location
Los Gatos, CA
My 1993 Toyota 4WD PU is really clean. It is the base truck 22RE, with a few options; AT, cloth interior. People used to knock on the door asking to buy. My 2001 Tundra is clean as well. Everybody wants it. My cowboy friends tell me, "Ya ain't shXX if ya ain't got a truck."
 

wdn

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1,318
Location
NH
I am never going to sell my Gen 1 Tundra SR5. Never. I will drive it forever as long as I can keep corrosion at bay.
 
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17,302
Location
OH
Originally Posted by SteveSRT8
Our 14 RAM has been solicited by both major dealerships here for them to purchase and resell. Not mass mailings but specifically addressed to us and offering what I felt was an amazing amount of money for a used truck. What a terrific problem!
I've gotten the same for the last three new cars we bought. Means nothing and is only a way of getting you in the door.
 
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1,579
Location
Austin, TX
Originally Posted by JHZR2
With the average household income in the USA somewhere in the $50k range, how buying expensive trucks makes sense for the average person makes no sense to me. But they have use, and people want them. Makes for a strong secondary market. Thus they depreciate slower.
Here in TX you will see folks earning $50K/annum, living in $150K shacks and without a doubt a truck parked on their driveways. Its a way of stupidity that is beyond me which seems to be quite prevailent in this part of the world.
 
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