Find the depreciation rate of your GMC Sierra 1500 in the graph below.
When you purchase a new vehicle, it starts to depreciate, or lose value, as soon as you drive it off the lot. The same occurs with the GMC Sierra 1500, which shows rapid depreciation in the first year after buying. In the first 12 months of owning a GMC Sierra 1500, you can expect it to depreciate the fastest. After that, the car will continue to depreciate more slowly until the fifth year of ownership. At that point, depreciation slows drastically, though the vehicle will still depreciate a small amount each year.
The depreciation rate of a vehicle can vary depending on the make and model you choose, which is why it’s helpful to learn about the depreciation rate of your specific vehicle. This can help you plan around its expected value in the long term by anticipating your overall cost of ownership.
Keep in mind that just because the vehicle costs the least to own in the sweet spot we have outlined here, you still may not want to own the vehicle during these depreciation sweet spot years. Although vehicles depreciate less as they get older, they have more repairs. Duh right? However, keep in mind that repairs don’t just cost you money, they cost you time. Reliability is the difference between being able to make it to your destination on time or missing an opportunity because the car broke down.
Check out our article on the best and worst years of the GMC Sierra 1500 to see our reliability ratings for all years of the Sierra 1500 between 2001-2021. We also cover MPG, safety ratings, and a number of other factors. We pulled data from Sierra 1500s registered in our app and surveyed owners to get you data-backed answers on just how good or bad each year of the Sierra 1500 is.
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GMC Sierra 1500 Depreciation
|Model Years||Mileage||Amount Depreciated||Residual Value Percentage||Resale Value|
The chart above conveys the approximate depreciation for a GMC Sierra 1500. It is based on Kelley Blue Book data since 2001, assuming a vehicle in standard trim, a generic color such as black or white, and a mileage of 12,000 per year.
Keep in mind that the auto market was heavily affected in 2020 and beyond. Automakers selling new cars during the COVID pandemic raised prices which caused a spike in demand in the used car market as people tried to save money. Many automakers, however, did not drop prices after the pandemic, they kept them so they could make a larger profit.
This is why the most recent years of many vehicles have seemingly experienced less depreciation. Some, such as the 2022, may have even appreciated due to the heightened levels of inflation created.
Factors That Impact the GMC Sierra 1500 Depreciation Rate
GMC is known for producing trucks and SUVs that maintain their value fairly well. Many GMC models, such as the Sierra 1500, depreciate more slowly than other vehicle lines, especially those that include smaller vehicles, such as hatchbacks and sedans. However, when determining how quickly a vehicle may lose its value, there are multiple factors to consider other than its make and model. Here are some more details about the factors that can affect the depreciation rate of the GMC Sierra 1500.
The first detail you can check to help determine your car’s depreciation rate is its age. While some older models hold their value effectively, it’s common for the resale value of an older car to be much lower than that of a newer one. This is because a car that’s multiple years old has the potential to experience significant wear over time, which can cause it to depreciate more rapidly, especially when it undergoes costly repairs that may cause future issues.
Some older vehicles also have had more than one previous owner, which can often cause the resale value to drop, namely when the car has been repaired many times. One exception to this rule can be classic cars, which are vehicles that people purchase as collector’s items, often for car shows. These vehicles can hold their value reasonably well, as the demand is typically higher than the supply since no new models are being made.
A vehicle’s body type can also affect its depreciation rate. This is because body types that are more sturdy and resilient can maintain their usability and value effectively. For instance, a large, rugged pickup truck such as the GMC Sierra 1500 that’s kept in an area with frequent inclement weather will typically have a higher resale value than a convertible or sedan in the same climate. Some body types also have better fuel economy, which can help increase the resale value even after a long time, as it can save the new owner money on gas.
The mileage on a vehicle refers to the number of miles it’s been driven, as shown on the dashboard’s odometer. When a vehicle has a high mileage, that usually indicates a high rate of use. This can affect a car’s depreciation rate because the more wear a vehicle shows, the less it’s likely to be valued during a resale or trade-in. For instance, a GMC Sierra 1500 with 60,000 miles on the odometer will have a better resale value than the same model with 150,000 miles on it.
For our calculations, we based our model on 12,000 miles of driving per year, which is an average mileage for a vehicle to have. If you want to preserve your vehicle’s resale value, try driving it less frequently so the mileage doesn’t reach an incredibly high number.
Another factor that affects depreciation on a vehicle is its overall condition. Many cars receive maintenance for damages, especially after an accident, and signs of lasting damage can cause a car to depreciate more quickly. There are varying levels of wear, as every vehicle needs routine maintenance to keep running. This means your car can maintain its value effectively if it only shows signs of general wear and has a history of routine service.
Even a vehicle’s color can play a part in determining its depreciation, as some paint colors hold their value more effectively than others. For instance, a recent study shows that yellow cars maintain their value the best, with shades such as green, orange, beige, and red closely behind. In contrast, subtle or standard colors, such as white, black, and gray, typically depreciate more quickly. This is because the demand typically doesn’t surpass the supply, as colors such as these are popular among new buyers due to their subtlety, meaning there’s often a surplus in the market.
Other Costs of GMC Sierra 1500 Ownership
The depreciation rate of a vehicle is only one portion of the total cost of ownership you’ll encounter. Here are a few other costs you can expect when owning a GMC Sierra 1500:
One of the most important costs of car ownership to consider is how much you’ll pay for insurance. Insurance is a key expense for drivers, as it protects them and their vehicles from extreme costs when there’s an accident. The exact rate to insure a GMC Sierra 1500 can vary, depending on your vehicle’s specific features and your personal driving record. For example, an advanced trim with heightened safety features may have a lower insurance rate than the base trim level.
According to CarEdge, the average cost for insuring a GMC Sierra 1500 is around $1,812 per year. Compared to the national average cost of $2,148 annually for car insurance, the Sierra 1500 is an affordable option.
Another cost of car ownership that you have to consider is maintenance. Cars need routine maintenance to ensure they remain functional and in good health. While the average maintenance cost for a GMC Sierra 1500 is around $691 per year, this amount can vary, depending on your vehicle’s year and trim level and whether you get in any accidents. You can also review the best and worst years for the Sierra 1500 to learn about your precise vehicle’s maintenance costs.
The Best Model Year To Buy a GMC Sierra 1500
Based on factors including price and reliability (but not depreciation), our choice for the best GMC Sierra 1500 model years to buy are the 2004, 2011-2012, 2016-2018, 2021, but check out our article on the best and worst years of the Sierra 1500 to get the whole story. Most of these model years have offered excellent reliability scores and lower maintenance costs overall than other years. Some of the best years to buy a Sierra 1500, such as 2004 and 2010, also fall within the sweet spot for depreciation for this vehicle.
Buying a GMC Sierra 1500 New vs. Used
|Years Since Purchased||Depreciated Value||With Inflation|
One way to save money when purchasing a GMC Sierra 1500 is to buy a used model rather than a new one. This is because older models typically depreciate more slowly than brand-new models. For example, the accumulated depreciation for a used Sierra 1500 after 3 years is around $11,078.81, while the accumulated depreciation for a new one is around $11,501.00.
When buying a used vehicle, inspect the car for signs of lasting wear or damage from previous accidents. Look for dents, scratches, missing parts on the exterior, and lights that don’t turn on. You can also examine the interior of the vehicle to see if it has any rips in the seats, stains on the upholstery, or malfunctioning features that will require future repairs, such as the air conditioning system or dashboard indicators. You can also review our used car buying checklist to catch any details you may have missed.
We base the findings in this article on the residual value left after depreciation and the cost of maintaining and repairing each model year of the GMC Sierra 1500 per mile. The data considers a GMC Sierra 1500 at the base trim level with standard features. Higher trim levels have the potential to hold value better, as well as vehicles in exceptionally good condition.
Keep in mind, there are large economic factors at play here too and the sale of new cars has caused shifts in the used market too. There is a stark difference in the cost of vehicles due to car manufacturers seeking higher profit margins after COVID as detailed by CNN and posted by CBS channel 58:
“… (T)he auto industry saw sky-high profits even as sales plummeted. Domestic manufacturers of cars and car parts saw a profit of $32 billion through the third quarter of 2022 (the latest data available) — their largest profit since 2016. Car dealerships also reported record-breaking profits through Q3, according to auto-retail advisers Haig Partners.
That’s because pandemic-era pent-up consumer demand remained strong as supply shifted, allowing automakers to increase their prices and their profit margins. Cars and trucks were sold nearly as soon as they hit dealership lots, and the average price paid for a vehicle in December soared to a near-record high of $46,382, according to J.D. Power.
Data from the Labor Department’s November Consumer Price Index shows American consumers are paying about 20% more for cars than they were in 2019.
The trend could continue into next year — research website Edmunds expects new-car sales to hit 14.8 million in 2023, a marginal increase from last year but well below pre-pandemic levels.
The auto industry has entered a new era: Less choice, higher prices and larger profit margins. So far it seems to be working for them.”
This shift by car companies to create higher profit margins by taking advantage of the heavily-reported-on chip shortage panic of COVID has had rebounding effects on the value of used cars.
Be aware that newer years (the latest 3-4 model years) may be inflated in price because of this and depending on how big this problem is for the model you are considering – it may even be inflating the price of the older model years.
Frequently Asked Questions About Vehicle Depreciation
The GMC Sierra 1500 often holds its value very well. However, the exact amount your car depreciates can vary, depending on its age, mileage, and overall condition. The exact resale value you get for your Sierra 1500 can also vary based on how you decide to sell it. For instance, Kelley Blue Book shows that the trade-in range for a Sierra 1500 at a dealership can be around $25,259-$27,886, while the range for selling with a private party is between $28,590 and $31,579.
The best model years for the GMC Sierra 1500 are the 2004, 2011-2012, 2016-2018, and 2021 models. This is because vehicles from these years show outstanding reliability and crash test scores, as well as overall lower costs for repairs. The worst years for this vehicle are the 2001-2003, 2005-2010, 2013-2015, and 2019-2020. Models from those years have shown signs of costly need for repairs, such as engine failure, transmission issues, and poor safety testing.
A GMC Sierra 1500 is considered to have high mileage when it reaches around 200,000 miles. However, some years for this model show seem capable of lasting beyond 200,000 miles, as this is a high-mileage vehicle. For instance, some models from between 2001 and 2006 exceed 200,000 miles, while other years, such as those from 2007 to 2021, have an average of 150,000 miles maximum. If you’re looking for a Sierra 1500 that will last you a long time, look for those with an average of 12,000 miles or fewer per ownership year.
To avoid the highest depreciation rates, consider buying a used GMC Sierra 1500 from the model years 2002 through 2013. This is where the sweet spot for depreciation lies for this vehicle, meaning these years typically lose less value when compared to Sierra 1500s from previous years. However, you can avoid depreciation by purchasing a pre-owned 2020 or 2021 model, as these years often hold their value effectively, even as newer models.
(2023.) Best & Worst Years of GMC Sierra 1500 – Graphs & Owner Surveys. Fixd. Retrieved Aug. 28, 2023, from https://www.fixdapp.com/car-reviews/best-worst-years-of-gmc-sierra-1500-graphs-owner-surveys/
(2023.) What are the Factors that Affect the Car Depreciation Rate? Indus Used Cars. Retrieved Aug. 28, 2023, from https://indususedcars.com/blog/factors-that-affect-car-depreciation-rate
(2023.) 12 Factors That Affect Your Car’s Resale Value. Money Crashers. Retrieved Aug. 28, 2023, from https://www.moneycrashers.com/factors-affect-used-cars-resale-value/
(2023.) GMC Depreciation. CarEdge. Retrieved Aug. 28, 2023, from https://caredge.com/gmc/depreciation
(2023.) GMC Sierra 1500 Depreciation. CarEdge. Retrieved Aug. 28, 2023, from https://caredge.com/gmc/sierra-1500/depreciation
(2023.) The Best and Worst Car Colors for Resale Value. iSeeCars. Retrieved Aug. 28, 2023, from https://www.iseecars.com/car-color-study
(2023.) Average Car Insurance Cost for August 2023. NerdWallet. Retrieved Aug. 28, 2023, from https://www.nerdwallet.com/article/insurance/how-much-is-car-insurance
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