Find the depreciation rate of your Toyota Highlander in the graph below.
A vehicle starts to depreciate, or lose its value, from the moment of purchase. The Toyota Highlander is no different. The most depreciation happens in the first year. After that, the Highlander will depreciate at a slower rate each year until it reaches the seven-year mark. All makes and models depreciate differently, so it’s important to know the depreciation rate of your vehicle to understand its long-term value and 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 Toyota Highlander to see our reliability ratings for all years of the Highlander between 2001-2022. We also cover MPG, safety ratings, and a number of other factors. We pulled data from Highlanders registered in our app and surveyed owners to get you data-backed answers on just how good or bad each year of the Highlander is.
If you want to know the depreciation and maintenance costs for your particular vehicle, use our free “Total Cost of Ownership” tool available in the FIXD App – Android or IOS.
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Toyota Highlander Depreciation
| Model Years | Mileage | Amount Depreciated | Residual Value Percentage | Resale Value |
| 2001 | 264,000 | $ 27,726.61 | 5.9% | $1,741 |
| 2002 | 252,000 | $ 28,540.94 | 6.5% | $1,981 |
| 2003 | 240,000 | $ 28,584.42 | 7.3% | $2,265 |
| 2004 | 228,000 | $ 28,621.47 | 8.5% | $2,666 |
| 2005 | 216,000 | $ 28,552.63 | 8.2% | $2,542 |
| 2006 | 204,000 | $ 28,921.54 | 8.9% | $2,829 |
| 2007 | 192,000 | $ 29,357.65 | 9.7% | $3,160 |
| 2008 | 180,000 | $ 31,362.88 | 14.1% | $5,131 |
| 2009 | 168,000 | $ 28,245.22 | 16.3% | $5,507 |
| 2010 | 156,000 | $ 26,463.19 | 20.7% | $6,900 |
| 2011 | 144,000 | $ 26,486.94 | 23.0% | $7,891 |
| 2012 | 132,000 | $ 23,954.41 | 30.9% | $10,728 |
| 2013 | 120,000 | $ 24,441.40 | 31.1% | $11,008 |
| 2014 | 108,000 | $ 21,701.69 | 39.0% | $13,866 |
| 2015 | 96,000 | $ 20,528.44 | 43.0% | $15,497 |
| 2016 | 84,000 | $ 18,932.96 | 47.8% | $17,310 |
| 2017 | 72,000 | $ 16,646.38 | 55.1% | $20,462 |
| 2018 | 60,000 | $ 14,564.77 | 61.7% | $23,453 |
| 2019 | 48,000 | $ 13,591.74 | 64.8% | $25,012 |
| 2020 | 36,000 | $ 14,150.68 | 67.2% | $28,946 |
| 2021 | 24,000 | $ 10,294.45 | 74.9% | $30,721 |
| 2022 | 12,000 | $ 5,785.50 | 84.6% | $31,776 |
| 2023 | N/A | N/A | N/A | N/A |
| 2024 | N/A | N/A | N/A | N/A |
The chart above conveys the approximate depreciation for a Toyota Highlander. 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 may have even appreciated due to the heightened levels of inflation created.
Factors That Impact the Toyota Highlander Depreciation Rate
Toyota has a longstanding reputation for building quality, reliable vehicles. It’s known for its philosophy of continuous improvement and innovative engineering processes that combine automation with human craftsmanship. Many Toyota vehicles retain their value well over the years, often lasting for hundreds of thousands of miles. For this reason, the depreciation of your Highlander may benefit from Toyota’s reputation for quality. Here are some other factors that can affect your Highlander’s depreciation and resale value.
Age
A vehicle’s age refers to its model year. The model year denotes a car’s generation and features, but it’s not necessarily the same as the manufacture year. For example, many car manufacturers release next-year vehicles in the summer or fall before the new year arrives. Vehicles typically depreciate quickly over the first several years and then start to depreciate at a more stable rate each year. When automakers release a new model year, the outgoing generation can lose its value quickly.
The differences between model years can also affect the resale value of your Highlander. For example, if a new model year gets additional safety features, it might have a better resale value over time than earlier models without those same components.
Body Type
Body type, also known as body style, is a vehicle’s classification based on its size and arrangement. Different body styles include sedans, coupes, hatchbacks, convertibles, sports cars, station wagons, sport utility vehicles, minivans, and pickup trucks. In North America, there’s a large demand for SUVs and trucks, so they tend to depreciate at the slowest rates. Luxury cars usually depreciate the fastest.
The Toyota Highlander is a midsize SUV available with both gas and hybrid powertrains. Like other SUVs, it usually depreciates at a slower rate than compact cars and luxury vehicles. If the demand grows for small cars in the market, the Highlander and other SUVs in its class may start to depreciate more quickly.
Mileage
How much mileage you put on your Highlander can affect its depreciation. Generally, high-mileage vehicles require more maintenance due to higher wear and tear. On average, people drive over 1,000 miles each month, according to federal data. For this reason, we base our model on 12,000 miles of driving per year. You may slow your Highlander’s depreciation if you drive fewer miles each year. But if you put more miles on your Highlander, you might speed up its depreciation.
Overall Condition
The overall condition of your Highlander refers to its mechanics and physical appearance. A vehicle in good condition has few, if any, mechanical issues and minimal wear and tear. You can maintain your Highlander’s condition by scheduling routine service, such as oil changes and tire rotations. In addition, you can often get a better resale value for a car if you avoid major damage and keep it cosmetically appealing.
However, it’s important to keep in mind that there may come a point when it’s not cost-effective to continue paying for maintenance and repairs. If repairs cost as much or more than the vehicle itself, it’s probably time to call it quits. You don’t want to continue spending money on a vehicle if you won’t get the same return when you sell it.
Color
Did you know the color of your vehicle can affect its resale value? A recent study found that certain vehicle colors retain their value better over time. Specifically, colors such as yellow, beige, and orange have the slowest depreciation rates, most likely because they’re less common vehicle colors. Mainstream colors, including silver, black, brown, and gold, depreciate more quickly. If you want to get the maximum value for your Highlander, choose one in a less popular color that holds its value better.
Other Costs of Toyota Highlander Ownership
While it’s important to consider a vehicle’s depreciation, it’s not the only cost of owning a car. Here are some other costs of owning a Toyota Highlander.
Insurance
Insurance is a necessary expense for owning a vehicle. Insurers charge different rates based on various factors, including the vehicle you drive. If you drive a car with good safety features for personal use, an insurance company may charge you a lower rate because your vehicle represents less of a risk.
On average, it’s cheaper to insure a Toyota Highlander than other vehicles. The average insurance premium for this vehicle is $129 per month. In comparison, the average premium for all vehicles is $147 per month. The Highlander is also one of the cheapest vehicles to insure in several states. In Maryland, for example, it costs about $72 per month for full coverage on a Highlander.
Maintenance
In addition to insurance, you’ll want to consider the cost of maintenance when purchasing a Highlander. By taking in your Highlander for regular service, you can maintain its operability and improve its value. It costs about $646 per year to maintain a Highlander. If you own one for five years, you’ll spend about $3,230 on maintenance. In comparison, the average annual maintenance cost for all vehicles is $694.
While the Highlander has below-average maintenance costs, some model years may have issues that result in expensive repairs. You can compare the Highlander maintenance costs by model year using our graph. Specifically, these model years have problems that may increase the cost of maintenance and repairs:
- 2001
- 2003-2006
- 2008
- 2011
- 2013
- 2014
- 2016
- 2018
- 2020
The Best Model Year To Buy a Toyota Highlander
Based on factors including price and reliability (but not depreciation), our choice for the best Toyota Highlander model years to buy are the 2002, 2007, 2009, 2010, 2012, 2015, 2017, 2019, and 2021, but check out our article on the best and worst years of the Highlander to get the whole story.
Factoring in depreciation, we recommend purchasing a 2007 Toyota Highlander. This model year is within the sweet spot for depreciation, and it’s also a dependable model with high owner reliability ratings and no history of expensive repairs.
Buying a Toyota Highlander New vs. Used
| 20-Year Projection | ||
| Years Since Purchased | Depreciated Value | With Inflation |
| 1 | $30,981 | $34,201 |
| 2 | $27,428 | $32,052 |
| 3 | $24,609 | $28,907 |
| 4 | $23,730 | $27,979 |
| 5 | $22,595 | $26,512 |
| 6 | $20,178 | $23,618 |
| 7 | $17,504 | $20,520 |
| 8 | $15,747 | $18,568 |
| 9 | $14,282 | $16,897 |
| 10 | $11,389 | $13,619 |
| 11 | $11,316 | $13,756 |
| 12 | $8,423 | $10,527 |
| 13 | $7,580 | $9,640 |
| 14 | $5,969 | $7,672 |
| 15 | $5,163 | $6,536 |
| 16 | $3,552 | $4,453 |
| 17 | $3,259 | $4,076 |
| 18 | $3,003 | $3,779 |
| 19 | $3,113 | $3,895 |
| 20 | $2,673 | $3,293 |
When purchasing a Toyota Highlander, you have the option of choosing a new or used version. You can compare depreciation costs to help you make your decision. A 2020 Highlander has accumulated about $14,151 in depreciation after three years. Today, it’s worth about $28,946. In comparison, a brand-new 2023 Highlander will accumulate about $12,011 in depreciation after three years. At that point, it will be worth an estimated $28,907, adjusting for inflation.
Both vehicles have similar values after three years, but in most cases, it’s better to purchase the used model. That’s because when you purchase a used vehicle, even one that’s only a few years old, you let someone else take the initial loss in depreciation. By the time you purchase the vehicle, it has already accrued the steepest depreciation costs, and you get a better value for the vehicle.
You can follow some simple steps when purchasing a used vehicle to make sure you find a good one. Use resources like Kelley Blue Book to estimate the value of a vehicle and its accumulated depreciation. Additionally, make sure to factor in other ownership costs, such as insurance and maintenance, as you make your purchasing decision.
Methodology
We base our findings on the residual value after depreciation and the cost to maintain or repair each model year of Toyota Highlander per mile. The data presented in this article applies to a Highlander in a base trim with standard options. If you purchase a higher trim or a model with advanced options, it may have a higher resale value. Other factors can affect the depreciation of your Highlander, including its condition and how you sell it. The COVID-era chip shortage can also affect the resale values of used vehicles.
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 upon 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
Do Toyota Highlanders hold their value?
In general, Toyota Highlanders hold their value very well. The value of your Highlander can vary based on different factors, including its age, mileage, condition, and other factors mentioned here. In addition, how and where you choose to sell your Highlander can affect the price you get for it.
For example, if you have a black 2021 Toyota Highlander LE in good condition with standard equipment, you can get $28,916 for the SUV if you trade it into a dealership. However, you can get $31,687 if you sell it to a private party, according to Kelley Blue Book.
What are the best years of Toyota Highlander to buy and which ones should you avoid?
The best model years of the Toyota Highlander are 2002, 2007, 2009, 2010, 2012, 2015, 2017, 2019, and 2021. All these model years have good reliability scores and no history of expensive repairs. Choose a 2007 Highlander if you want a reliable model year that’s also within the sweet spot for depreciation.
If you’re buying a used Highlander, avoid these model years:
- 2001
- 2003-2006
- 2008
- 2011
- 2013
- 2014
- 2016
- 2018
- 2020
These model years have lower reliability scores and an increased chance of needing costly repairs. While some of these model years fall within the depreciation sweet spot, you might be better off purchasing another model year with better ratings and reliability.
What's high mileage for a Toyota Highlander?
It’s evident that the Highlander can add on the miles. Not only does the first generation have an average of almost 200,000 miles, but several individual model years have already crossed this benchmark.
For instance, the survey results show that the 2002 Highlander has an average of 217,000 miles, while the 2001, 2003, and 2007 editions aren’t far behind, with averages of 200,000 miles. And together, all Highlanders in the study have a combined average of 133,970 miles.
Assigning 150,000 miles as the Highlander’s high-mileage threshold is reasonable, based on this data.
That doesn’t mean every Highlander will get to this point or beyond. Thoughtful driving, proper maintenance, and good fortune (no accidents) make a difference. A well-maintained Highlander with 150,000 miles of mostly highway use is likelier to see 200,000 miles than one with 100,000 miles and a history of mostly city travel and poor servicing.
Ultimately, a pre-purchase inspection by a qualified mechanic is how you can determine if a pre-owned Highlander has more miles in its future. This is good practice no matter what used car you’re thinking of buying.
Some of the Highlanders on our best list (the 2009, 2010, and 2012 model years) are already approaching the high-mileage mark and appear well-suited for additional use. For those looking to start with a Highlander that hasn’t been driven as much, check out the 2017 and 2019 model years. And if the budget allows, a 2021 Highlander is ideal. With an average use of only 35,000 miles, these SUVs are barely broken in.
How old of a Toyota Highlander should you buy to avoid most of the depreciation?
Purchase a 2003-2008 Toyota Highlander to avoid the most depreciation. Among these model years, the 2007 Highlander is the best choice for its high-reliability ratings, excellent safety scores, and low chance of costly repairs.
References
(2023.) The Secrets Behind Toyota’s Bullet-Proof Reliability. TopSpeed. Retrieved Oct. 31, 2023, from https://www.topspeed.com/the-secrets-behind-toyotas-bullet-proof-reliability/
(2023.) Toyota Highlander. Cars.com. Retrieved Oct. 31, 2023, from https://www.cars.com/research/toyota-highlander/
(2022.) Average Annual Miles Per Driver by Age Group. U.S. Department of Transportation, Federal Highway Administration. Retrieved Oct. 31, 2023, from https://www.fhwa.dot.gov/ohim/onh00/bar8.htm
(2023.) The Best and Worst Car Colors for Resale Value. iSeeCars. Retrieved Oct. 31, 2023, from https://www.iseecars.com/car-color-study
(2023.) Toyota Highlander Insurance Cost. The Zebra. Retrieved Oct. 31, 2023, from https://www.thezebra.com/auto-insurance/vehicles/toyota/highlander/
(2023.) What Is the Average Cost of Car Insurance? The Zebra. Retrieved Oct. 31, 2023, from https://www.thezebra.com/auto-insurance/how-to-shop/average-auto-insurance/
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