When it comes to owning a car, there’s one thing that’s almost as certain as death and taxes: depreciation. This is the term used to describe how much value a car loses over time. For many cars, people usually look at how much value is left after five years, but the process of losing value starts much earlier.
Many vehicles lose a significant portion of their value fairly quickly. However, some cars manage to hold onto their value much better than others. Generally speaking, expensive luxury cars tend to lose value faster than more affordable, mainstream models. This means that while luxury vehicles may offer more prestige and features, they can also result in a bigger financial hit when it comes time to sell or trade them in.
On the other hand, Toyota is a brand known for its quality, reliability, and long-lasting vehicles. Because of these traits, Toyotas tend to perform well when it comes to depreciation, often holding their value better than many other brands. This is a big advantage for Toyota owners because it means that their vehicles are worth more when they decide to sell or trade them in.
However, it’s worth noting that Toyotas have become more expensive to buy, especially after the COVID-19 pandemic. While this means you might pay more upfront, the good news is that these cars still hold onto their value well, so you might get more money back when it’s time to part with them.
One specific model that does particularly well in terms of depreciation is the Toyota Camry. Compared to the industry average, the Camry loses less value after one year, making it a smart choice for buyers who are looking for a car that will retain more of its worth over time.
In short, while every car loses value over time, some, like the Toyota Camry, do a much better job of keeping their value. This makes them a great option for people who want to make a good investment in their next vehicle.
Why the Toyota Camry Holds Its Value So Well After Just One Year
When you buy a new car, one of the biggest financial impacts you’ll face is depreciation. This is the process where a car loses value over time, and it happens to almost every vehicle. The first year is typically when cars lose the most value, and for many models, this can be quite significant. However, the Toyota Camry stands out as a car that depreciates more slowly than many of its competitors.
According to data from CarEdge, a new Toyota Camry loses just over 16 percent of its value in the first year. To put this into perspective, this calculation assumes a one-year-old 2024 Camry with around 12,000 miles on it. While 16 percent might seem like a lot, it’s actually much lower than the average rate of depreciation for most cars. For comparison, Progressive Insurance suggests that the average vehicle loses around 20 percent of its value in the first year, and then continues to lose about 15 percent each year after that until it reaches five years old.
So, why does the Camry hold its value better than most?
One of the key reasons is its strong reputation for reliability and longevity. The Toyota Camry has been known for decades as a dependable car that can easily rack up hundreds of thousands of miles with minimal issues. This reliability makes it a popular choice among buyers, and higher demand on the used car market helps keep its resale value strong. Simply put, people are willing to pay more for a used Camry because they trust it to last.
Additionally, the Camry has been America’s best-selling sedan for over a decade. This popularity isn’t just because of its reliability—it’s also due to Toyota’s careful approach to introducing new technologies and features. Unlike some other automakers that rush to add the latest gadgets, Toyota takes its time, ensuring that any new technology is thoroughly tested before it’s included in their vehicles. This means that Camrys are less likely to have the sort of unexpected problems that can plague newer cars, further boosting their reputation for quality.
The Camry’s slower rate of depreciation means that after one year, it retains more of its value compared to other vehicles. After three years, a Camry still holds about 68.25 percent of its original value, which equates to just under 32 percent depreciation.
This is impressive when you consider that many cars depreciate much more rapidly during this period. It’s also worth noting that hybrid versions of the Camry, along with other special models, may depreciate even more slowly. These models are often more desirable on the used market, which can help them hold their value better.
The Toyota Camry is a great example of a car that offers long-term value to its owners. Its strong reputation for reliability, careful technological advancements, and high demand in the used car market all contribute to its slower depreciation rate. For buyers who are concerned about getting the most value out of their purchase, the Camry represents a solid investment, with its value holding up better than most vehicles after just one year on the road.
The Toyota Camry Depreciates By $3,672 After 1 Year
Should You Buy a New or Used Toyota Camry? Here’s What to Consider
When deciding whether to buy a new or used Toyota Camry, it’s important to weigh the benefits and drawbacks of each option. The Toyota Camry is known for its reliability, and because of that, it holds its value better than many other sedans. This means that even a used Camry can be relatively expensive compared to similar cars from other brands. However, the higher price is often justified by the Camry’s long-lasting performance and dependability.
One of the advantages of buying a used Camry is the variety of options available. Over the years, Toyota has offered different versions of the Camry, including standard gas-powered models, hybrids, and even a more powerful V6 version. This gives used car buyers a wide range of choices depending on their needs, whether they want better fuel efficiency, more power, or simply a reliable daily driver.
For those considering a new Camry, Toyota recently updated the model for 2025, focusing on hybrid powertrains. However, if you opt for a one-year-old model, you’ll still get most of the same features that come with the new Camry, but at a lower price.
Even slightly older Camry models come with advanced technology and safety features that Toyota is known for, such as Toyota Safety Sense. This suite of safety features includes forward collision warnings, adaptive cruise control, automatic emergency braking, and more. The infotainment system is also well-equipped, with standard Apple CarPlay and Android Auto, a touchscreen display, and a Wi-Fi hotspot.
On the other hand, buying a used car can come with some risks. Even though the Camry is reliable, any car can have mechanical issues, especially if it hasn’t been properly maintained. To avoid any surprises, it’s a good idea to have a pre-purchase inspection done by a trusted mechanic. This might cost a few hundred dollars, but it can save you from potential headaches down the road by ensuring that the car is in good condition before you buy it.
Another option for used car buyers is to consider a certified pre-owned (CPO) Toyota Camry. Toyota’s CPO program offers added peace of mind by thoroughly inspecting the vehicle and offering warranties that can protect you against unexpected repairs. The program has two tiers: Gold Certified and Platinum Certified. Gold Certified Camrys are less than six years old and have fewer than 85,000 miles on them.
They come with a 12-month/12,000-mile limited warranty and a 7-year/100,000-mile powertrain warranty, along with 24-hour roadside assistance and other benefits. Though CPO cars typically cost more than non-certified used cars, the added warranty and the assurance that the car has been carefully inspected make it a worthwhile investment for many buyers.
Whether you decide to buy a new or used Toyota Camry depends on your budget and priorities. If you want the latest technology and features and can afford the higher price, a new Camry might be the way to go. However, if you’re looking to save money while still getting a reliable car, a used Camry especially a certified pre-owned model offers excellent value with the added benefits of warranty coverage and thorough inspection.
Why the Toyota Camry’s Depreciation is Easier to Handle
Depreciation is an unavoidable part of owning a car—its value begins to drop as soon as you drive it off the dealership lot. Over time, the car continues to lose value, which can be a significant cost for car owners. When you add up other expenses like insurance, fuel, and potential repairs, owning a vehicle can be more expensive than many people realize.
However, the Toyota Camry stands out because it depreciates more slowly than many other cars. This slower rate of depreciation helps reduce the overall cost of ownership. While you still have to pay for insurance, fuel, and maintenance, knowing that your Camry holds its value better than most can make these costs a bit easier to manage.
The Toyota Camry is a popular choice for many reasons. It’s known for being a comfortable, safe, and efficient vehicle, which makes it a great option for families and anyone who prioritizes quality and reliability over flashy performance. While the Camry might not be the fastest car on the road, it’s built to last and is less likely to break down, saving you money on repairs in the long run.
For those who do want a bit more power, the Camry’s V6 engine delivers over 300 horsepower, offering a more exciting driving experience. But most buyers choose the Camry for its hybrid or four-cylinder versions, which provide excellent fuel efficiency—a key factor for many people when purchasing a car.
While all cars lose value over time, the Toyota Camry’s slower depreciation rate helps make it a smart financial choice. Its blend of comfort, safety, and reliability makes it a solid investment, whether you’re looking for a family car or just a dependable ride that won’t drain your wallet.
