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When was the last time you considered depreciation as part of your pickup truck buying equation? Few buyers factor it into their purchasing equation whether the pickup is an EV or an ICE truck.
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Nonetheless, according to the Ford Authority (FA), depreciation is a very real cost that must be factored into a buying decision. It is true that depreciation is only one factor that has to be included in the buying equation, but nonetheless, it has to be included.
What are the other costs? They include:
- Fuel
- Insurance
- Maintenance
- Taxes
- Depreciation
Indeed, as FA notes, “Depreciation is a genuine—and often costly—expense that isn’t factored into many buying decisions. It should be, but it isn’t. Indeed, FA says most owners don’t pay much attention to depreciation, but it is an expense that needs to be considered.
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.Most pickup owners don’t “think much about [it] … until the time comes to sell the vehicle and purchase another one.” But the cost is there. How does KBB figure things out? Indeed, this is a figure many vehicle owners don’t think much about until the time comes to sell that vehicle and purchase another one.
“In that regard, Kelley Blue Book’s annual Best Resale Value Awards can be a useful tool, as FA notes, because they highlight” vehicles that retain the highest percentage of their original investment over the first five years of ownership.”
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In the last couple of years, the Ford F-150 Lightning has “won one of these awards (last year). It has also “repeated the success in 2024, joining the Ford Bronco and Ford Maverick, which also cut.”
FA notes emphatically that the Ford F-150 Lightning ranked at the top of the electric truck segment this time around”. However, it did miss out “on a top-10 overall finish, “even though the Bronco and the Maverick ranked first and 10th, respectively, after topping their respective segments.” While it may have missed the top 10 in the EV segment, the “F-150 Lightning offers owners a solid five-year resale value. That value is “expected to be 43.1 percent of the original MSRP.”
Here's how Kelley Blue Book figures its “Best Reseal Value Awards.” They are based on projections from the organization’s Official Residual Value Guide. KBB’s residual values are established by automotive analysts who review the output from statistical models built upon millions of transactions.
Vehicles that earn the highest five-year residual values, expressed as a percentage of their original Manufacturer’s Suggested Retail Price (MSRP), are selected for these awards.
As KBB points out, depreciation is typically the largest expense” facing new vehicle owners in the first five years of ownership.”
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Putting some specific figures around depreciation, KBB found that the average 2024 model-year vehicle will only retain about 42.4 percent of its original value following that period (five years). This means “a $50,000 new vehicle today will be worth around $21,200 after five years.”
By comparison, all vehicles in Kelley Blue Book’s Top 10 Best Resale Value list for 2024 are projected to retain around 58 percent or more of their MSRP after the initial five-year ownership period.
Ford Motor Photo
Marc Stern has been an automotive writer since 1971. His automotive articles have appeared in venues including Popular Mechanics, Mechanix Illustrated, AutoWeek, SuperStock, Trailer Life, Old Cars Weekly, Special Interest Autos, and others. You can follow Marc on Twitter or Facebook.
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