Why used trucks hold their value better than new trucks?
New or used trucks are both good choices if you’re in the market for one. Although there are undoubtedly advantages to buying new, such as getting access to the latest technology and features, there are also some compelling reasons why used trucks hold their value better than new ones. It’s worth noting not all used trucks will remain valuable. Things like age, mileage, condition, and brand affect resale prices. Nevertheless, on average, used trucks tend to depreciate more slowly than new ones do. The value of a new car deteriorates by 23.5% in the first year, according to Edmunds. A typical used car only drops about 12% of its value in the same period.
So why do use trucks hold their value better than new ones? In addition, the value of a brand-new truck drops by up to 25% the moment you drive it off the lot. Its rapid depreciation curve slows down considerably after the first few years of ownership. However, supply is limited by production capacity and other factors (such as tariffs). When demand outstrips supply cases with certain brands or models – prices tend to stay high even for older vehicles. The toughness of trucks is part of their appeal! Many owners take pride in keeping custom trucks fresno running well beyond 100k miles. If maintenance has been kept up-to-date and major repairs haven’t been needed (or have been done well), a used truck is just as reliable as a new one. Insurance rates are typically lower for used trucks than for new ones since the cost is lower. It helps to higher the initial cost of ownership many buyers associate with purchasing a pre-owned vehicle. If you spring for a low-mileage, relatively recent model, you’ll pay thousands less than you would for an equivalent new truck. Therefore, it is simple to upgrade to a high-end brand or trim level without breaking the bank.
So what does all this mean for buyers?
- You may be able to afford a higher-end model or trim level than you would if buying new.
- Insurance rates are likely to be lower for you as a result.
- You’ll avoid the steep depreciation curve that comes with owning a brand-new vehicle.
Of course, there is potential to buy used with uncertainty about past ownership history and maintenance records. The concern was mitigated by doing a thorough research in advance and having an independent mechanic inspect any prospective purchases.