Find the depreciation rate of your Toyota RAV4 in the graph below.
A new car starts to depreciate, or decrease in value, as soon as you finalize your purchase, and the same is true for the Toyota RAV4. Once you drive off the lot, the most rapid period of depreciation — the first year of ownership — begins. After the first year, the depreciation rate decreases steadily until the eighth year of ownership, when the rate levels off.
The make and model of your vehicle will impact its depreciation rate, as different types of cars lose value at varying rates. Knowing about your specific car’s depreciation rate can help you plan for its value over time, as well as your budget for maintaining it.
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 RAV4 to see our reliability ratings for all years of the RAV4 between 2001-2021. We also cover MPG, safety ratings, and a number of other factors. We pulled data from RAV4s registered in our app and surveyed owners to get you data-backed answers on just how good or bad each year of the RAV4 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 RAV4 Depreciation
| Model Years | Mileage | Amount Depreciated | Residual Value Percentage | Resale Value |
| 2001 | 264,000 | $ 18,591.68 | 8.5% | $1,728 |
| 2002 | 252,000 | $ 18,791.48 | 9.7% | $2,025 |
| 2003 | 240,000 | $ 19,298.85 | 9.6% | $2,049 |
| 2004 | 228,000 | $ 21,742.34 | 9.3% | $2,230 |
| 2005 | 216,000 | $ 21,916.36 | 10.9% | $2,683 |
| 2006 | 204,000 | $ 22,724.98 | 13.1% | $3,421 |
| 2007 | 192,000 | $ 23,756.53 | 12.8% | $3,494 |
| 2008 | 180,000 | $ 24,527.82 | 13.0% | $3,672 |
| 2009 | 168,000 | $ 23,425.80 | 17.0% | $4,805 |
| 2010 | 156,000 | $ 22,181.51 | 20.0% | $5,562 |
| 2011 | 144,000 | $ 22,227.99 | 21.2% | $5,981 |
| 2012 | 132,000 | $ 21,246.70 | 24.0% | $6,719 |
| 2013 | 120,000 | $ 18,335.13 | 35.6% | $10,127 |
| 2014 | 108,000 | $ 17,336.86 | 39.5% | $11,334 |
| 2015 | 96,000 | $ 16,720.59 | 41.7% | $11,940 |
| 2016 | 84,000 | $ 14,788.01 | 49.7% | $14,639 |
| 2017 | 72,000 | $ 11,939.82 | 59.6% | $17,633 |
| 2018 | 60,000 | $ 11,460.46 | 61.4% | $18,255 |
| 2019 | 48,000 | $ 9,142.58 | 70.6% | $21,966 |
| 2020 | 36,000 | $ 7,266.04 | 76.8% | $24,043 |
| 2021 | 24,000 | $ 4,588.55 | 84.7% | $25,445 |
| 2022 | 12,000 | $ 1,477.06 | 94.7% | $26,374 |
| 2023 | 0 | N/A | N/A | N/A |
| 2024 | 0 | N/A | N/A | N/A |
The chart above conveys the approximate depreciation for a Toyota RAV4. 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 RAV4 Depreciation Rate
Toyota vehicles are known for maintaining their value well. Since Toyota produces reliable cars that remain useful for many years, often more than similar models on the market, their vehicles depreciate more slowly than other brands. However, there are many other factors that help to determine how quickly a car loses value. Here are a few key factors that impact the depreciation rate of a Toyota RAV4.
Age
A car’s age and model year, which is the year directly after the car’s release, work together to determine a car’s resale value. Since cars typically depreciate at the fastest rate during the first few years of ownership, a newer car can have a high depreciation rate, even when bought used. Classic cars are a notable exception, as they are collector’s items and maintain their value, even when they can’t be driven.
A car’s model year affects its depreciation rate because some model years hold their value better than others. Similarly, outgoing models with the newest model year will have the steepest rates of depreciation.
Body Type
A car’s body type, or body style, is another factor that impacts its depreciation. The body type is a descriptor for the shape, arrangement, and size of a vehicle, which can help guide you toward models that fit your driving habits. Some popular body types include minivans, pickup trucks, sedans, and hatchbacks. The Toyota RAV4 is a crossover sport utility vehicle, which is a mid-size body type that’s larger than a traditional car but not as big as a full SUV.
The RAV4 has a rugged body type that often holds its value effectively, as it can withstand frequent driving and changing weather but doesn’t have as much weight as trucks and similar body types, which may have mechanical issues from more heavy use. Smaller, lighter cars typically depreciate more slowly, except in areas with extreme weather that causes them to wear down faster.
Mileage
The mileage of a car refers to the number of miles it has been driven during its life. The more frequently you drive a vehicle, the more mileage it will have, and this can cause it to depreciate more quickly. We base our models on cars that are driven 12,000 miles per year, which is considered to be average mileage. Any car that’s driven more than that may depreciate more than similar models with lower mileage.
There are a few ways you can preserve your car’s mileage and, in turn, its value. By driving your car less, you can reduce the number of miles you add to the odometer. This can help keep its resale value high, as a car that’s been driven less than the average mileage per year can be a lucrative trade-in. If you drive your car more frequently, it may depreciate more quickly.
Overall Condition
A car’s overall condition is one of the first details that can affect depreciation. While all vehicles experience regular wear and tear and need routine maintenance to stay in great shape, some levels of damage can make them drop in value. For example, if a car has had frequent or significant repairs, or if it’s been in multiple accidents resulting in visible damage or malfunctioning features, it will decrease in value rapidly. By maintaining your vehicle and getting it serviced, you can keep its resale value high and avoid most of the depreciation.
Color
Even a car’s exterior color can impact its depreciation rate and resale value. Some colors hold their value better than others, largely due to the demand that certain paint colors see over time. For example, a recent study shows that yellow cars seem to hold their value the most effectively of any color, with beige, orange, and green following closely behind.
On the other hand, gold, black, and brown cars depreciate at the fastest rate. Since subtle and neutral paint colors are typically popular choices when people order brand-new cars, the market can become saturated with those options, causing more unique colors to have greater value.
Other Costs of Toyota RAV4 Ownership
A car’s depreciation rate is only one aspect of ownership that you’ll have to account for. Here are some other factors that can determine a Toyota RAV4’s total cost of ownership.
Insurance
Insurance is one cost that you’ll have to budget for when you buy a RAV4. The insurance rate you’ll get depends on your make and model, including the trim level, and your personal driving record, in addition to several other factors. For instance, a vehicle that’s designated for infrequent use or a car with a high number of advanced safety features can have lower insurance premiums, as it poses less risk to the insurance providers.
The average cost of insuring a Toyota RAV4 is around $1,438 per year, or around $120 per month. This is lower than the national average, which is $2,014 per year, or $168 per month for full coverage.
Maintenance
Routine maintenance is key to keeping your vehicle in great condition and helping it hold its value effectively. The average cost of maintaining a Toyota RAV4 is around $588 per year, considering repairs and service appointments. This is lower than the average maintenance cost for all vehicles, which is $694 per year. To learn about the potential maintenance cost of your RAV4, you can review FIXD’s graph comparing the average repair costs for models by year.
The Best Model Year To Buy a Toyota RAV4
Based on factors including price and reliability (but not depreciation), our choice for the best Toyota RAV4 model years to buy are the 2002, 2009, 2011-2012, 2013-2015, 2017-2018, and 2019-2021, but check out our article on the best and worst years of the RAV4 to get the whole story. These years are typically considered the best due to their exceptional reliability scores and consistently efficient fuel economy.
Buying a Toyota RAV4 New vs. Used
| 20-Year Projection | ||
| Years Since Purchased | Depreciated Value | With Inflation |
| 1 | $26,776 | $29,560 |
| 2 | $23,949 | $27,986 |
| 3 | $21,715 | $25,508 |
| 4 | $19,962 | $23,536 |
| 5 | $17,361 | $20,371 |
| 6 | $16,852 | $19,725 |
| 7 | $14,053 | $16,473 |
| 8 | $11,791 | $13,903 |
| 9 | $11,169 | $13,214 |
| 10 | $10,066 | $12,037 |
| 11 | $6,786 | $8,249 |
| 12 | $5,994 | $7,492 |
| 13 | $5,655 | $7,192 |
| 14 | $4,807 | $6,178 |
| 15 | $3,676 | $4,653 |
| 16 | $3,619 | $4,537 |
| 17 | $3,704 | $4,633 |
| 18 | $3,082 | $3,878 |
| 19 | $2,630 | $3,290 |
| 20 | $2,714 | $3,344 |
One of the best ways to save money when purchasing a Toyota RAV4 is to opt for a used model rather than a brand-new one. For example, a used 2020 Toyota RAV4 has accumulated $7,266.04 of depreciation over three years and is currently worth $24,043, adjusting for inflation. In comparison, a new 2023 RAV4 will accumulate $6,560 of depreciation in its first three years and will be worth an estimated $25,508, accounting for inflation. Both vehicles will have roughly the same value after three years of ownership, but buying the used car can protect you from depreciation, as the most rapid depreciation period will have already occurred.
While it’s beneficial to buy a new car to save money, remember these tips to ensure you get the most for your money. To verify the condition and function of the vehicle, inspect it thoroughly before you finalize your purchase. You can also search for used models in the trim you want at various sellers, as this allows you to gauge the best price. For more help finding used models with the slowest possible depreciation, check out FIXD’s used car buying checklist.
Methodology
The data in this article applies to the base-model trim for the Toyota RAV4 with standard options. Since different trim levels may depreciate at varying rates, it’s important to look up your specific trim when determining your car’s depreciation. Trim levels that are more advanced and include modern technology, for example, often hold their value better than basic trims. The COVID-era chip shortage can also affect resale values, as well as your vehicle’s overall condition and your method of selling. For instance, you can often get more money from a private buyer than a dealership.
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 RAV4s hold their value?
As a reliable vehicle with a sturdy build and mechanics, the Toyota RAV4 holds its value extremely well. However, keep in mind that a car’s resale value depends on a lot more than its make and model. Factors such as the vehicle’s color, age, mileage, and more can all impact the value of a RAV4.
Another key factor that affects resale value is the way in which you choose to sell your RAV4. For example, the value for a 2021 RAV4 in the base trim and with standard features in a basic color, such as black, averages between $23,507 and $25,280 when you trade it in at a dealership, according to Kelley Blue Book. When selling to a private party, you can expect a resale value between $26,227 and $28,230.
What are the best years of the Toyota RAV4 to buy and which ones should you avoid?
According to recent surveys, the best years of the RAV4 to buy used are the 2002, 2009, 2011-2012, 2013-2015, 2017-2018, and 2019-2021 model years. RAV4s from these years show outstanding reliability, consistently excellent fuel efficiency, and impressive value over time. In terms of the worst years for the RAV4, you should stay away from the 2001, 2003-2005, 2006-2008, 2010, and 2016 models. RAV4s from these years have low reliability and safety scores, as well as frequent issues with important mechanics, such as the powertrain and catalytic converter.
What's high mileage for a Toyota RAV4?
High mileage for a Toyota RAV4 is considered to be around 200,000 miles. At this point, many RAV4s begin to show signs of wear and start losing function as well as value. With models from 2001, 2006, and 2007 showing 170,000 to 180,000 miles before having issues, it’s safe to say you can preserve the value of your RAV4 by keeping it well below 200,000 miles on the odometer.
How old of a Toyota RAV4 should you buy to avoid most of the depreciation?
When you purchase a used RAV4, you avoid the steepest periods of depreciation. However, some model years hold their value especially well. With the ownership sweet spot for the RAV4 being the 2004-2009 model years, you can avoid most of the depreciation from this model by opting for one from those periods. To stay at least five years within the sweet spot, you can look for a 2009 model.
References
(2023.) Best & Worst Years of Toyota RAV4 – Graphs & Owner Surveys. Fixd. Retrieved Oct. 30, 2023, from https://www.fixdapp.com/car-reviews/best-worst-years-of-toyota-rav4-graphs-owner-surveys/
(2023.) My Car’s Value: 2021 Toyota RAV4 LE Sport Utility 4D. Kelley Blue Book. Retrieved Oct. 30, 2023, from https://www.kbb.com/toyota/rav4/2021/le-sport-utility-4d/?vehicleid=449733&mileage=12000&modalview=false&intent=trade-in-sell&pricetype=trade-in&condition=good&options=9642833%7ctrue&extcolor=black
(2023.) Toyota RAV4 Depreciation. CarEdge. Retrieved Oct. 30, 2023, from https://caredge.com/toyota/rav4/depreciation#:~:text=A%20Toyota%20RAV4%20will%20depreciate,the%20RAV4%20is%20no%20exception.
(2023). 12 Factors That Affect Your Car’s Resale Value. Money Crashers. Retrieved Oct. 30, 2023, from https://www.moneycrashers.com/factors-affect-used-cars-resale-value/
(2023.) How Does Age Affect a Car’s Value? Team Auto Depot. Retrieved Oct. 30, 2023, from https://www.autodepotsudbury.ca/blog/how-age-affects-car-value/
(2023.) The Best and Worst Car Colors for Resale Value. iSeeCars. Retrieved Oct. 30, 2023, from https://www.iseecars.com/car-color-study
(2023.) Toyota RAV4 Insurance Cost. CarEdge. Retrieved Oct. 30, 2023, from https://caredge.com/toyota/rav4/insurance
(2023.) Average Cost of Car Insurance in November 2023. Bankrate. Retrieved Oct. 30, 2023, from https://www.bankrate.com/insurance/car/average-cost-of-car-insurance/
(2023.) What Will Your Car Cost You? Average Annual Repair Bills Revealed. Fixd. Retrieved Oct. 30, 2023, from https://www.fixdapp.com/service/what-will-your-car-cost-you-average-annual-repair-bills-revealed/
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