Toyota Prius | Depreciation Rate & Curve Graphed

Find the depreciation rate of your Toyota Prius in the graph below.

Depreciation, when an asset loses value over time, affects all vehicles. Ordinarily, the steepest drop in value occurs in the first year and slows over time, but not all makes and models depreciate at the same rate. Understanding the depreciating factors for a specific vehicle allows you to understand its total cost of ownership and ability to retain value long-term.

The depreciation pattern of the Toyota Prius deviates from those of other vehicles. The average annual depreciation rate of a newer-model Prius is actually higher in the second year of ownership, and it drops and rises sporadically before steadily declining after 10 years.

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 Prius to see our reliability ratings for all years of the Prius between 2001-2022. We also cover MPG, safety ratings, and a number of other factors. We pulled data from Priuses registered in our app and surveyed owners to get you data-backed answers on just how good or bad each year of the Prius 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.

If you like our online tools and articles consider purchasing our FIXD sensor for $19.99 (this is 67% off). It’s our flagship product. With it, you scan your car for common engine problems.

If our sensor detects any problems with the engine, our app will clearly explain:

1. What could have caused it and
2. How much the possible repairs may cost.

If you’d like, we’ll even show you trusted repair shops in your area where you can get your ride fixed through RepairPal. The total cost of ownership feature within the app totals your maintenance costs, repairs, and depreciation (Sensor + App). This is free on the app.

Toyota Prius Depreciation

The above chart, based on Kelley Blue Book data since 2001, details the approximate depreciation for a Toyota Prius in standard trim, a generic color (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 2015, 2016, and 2019, may have even appreciated due to the heightened levels of inflation created.

Factors That Impact the Toyota Prius Depreciation Rate

The consensus on Toyota vehicles is that they’re “solid, efficient, and reliable,” per Consumer Reports. Indeed, the Japanese automaker is widely acknowledged for making some of the most reliable vehicles on the market, with pickup trucks and passenger vehicles that provide many years of operability with minimal mechanical issues.

Consumer Reports also highlights the 2023 Toyota Prius as being “among the most fuel-efficient cars available” and having sleek looks, increased power, nimble handling, and driver-assistance technologies. Considering all that, we’d say the Toyota Prius is a high-value model from a generally high-value brand.

The Prius’s depreciation rate seems to corroborate that description, and we can look at comparative data to confirm. According to Carfax, vehicles typically lose 20% of their value in the first year of ownership, followed by an approximately 15% decrease in the residual value in each successive year. So, in five years, the average vehicle will have lost about 60% of its value from new. The Prius is an outlier, as its first-year depreciation doesn’t reach even half the overall average, and its five-year depreciation is only around 29%.

But the reputations of an automaker and a particular vehicle model aren’t the only components contributing to depreciation. Other factors include:

A new 2023 Toyota Prius has a starting MSRP of $27,450. Given its price and assuming an annual mileage of 12,000 per year, its estimated resale value after three years is $19,490  — a total accumulated depreciation of $7,960.50. In contrast, a two-year-old used Prius has a current value of $23,134, which equals $5,953.52 in accumulated depreciation from an inflation-adjusted original MSRP.

When you’re in the market for a used vehicle, thoroughly research the depreciation rates for the make, model, and years you’re interested in. The My Car’s Value tool by Kelley Blue Book can help you estimate a vehicle’s potential resale value down the line, but don’t neglect to factor in the other costs of ownership, such as insurance rates and maintenance.

Methodology

The data we’ve presented in this article pertains to the base-level Toyota Prius available in each model year of its production, as higher trim levels offer more features that help a vehicle retain its long-term value. Using the base trim level as our reference point removes such variables.

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.