AutoTrader.com Reports 8% Increase in Used Tundra Values During Last Year
According to AutoTrader.com, the average asking price of a certified pre-owned Toyota Tundra increased 8% between March 2010 and March 2011, from $24,732 to $26,684. While AutoTrader.com says that the increase in pricing may be a result of speculation regarding a vehicle shortage, that seems a little unlikely. The market usually reacts to shortages rather than forecasts them.
Instead, this is probably just another sign that the Tundra’s resale value – and demand with consumers – is top-notch.
Tundra resale value is high because:
1. Toyota doesn’t offer large cash incentives on the Tundra (at least not compared to Ford, GM, and Ram). Large cash incentives really kill used car values, mostly because a drop in price on a new truck trickles down to all the older trucks available on the market. Because Toyota emphasizes low-cost financing offers instead of big cash discounts, resale value remains high.
2. Consumers trust Toyota quality. The Tundra has earned reliability and durability awards from JD Power for most of the last decade, not to mention solid reliability ratings from Consumer Reports (at least since 2008) awards for value (Intelichoice and Edmunds.com), etc.
3. Toyota has the industry’s best certified pre-owned (CPO) program. If you’re looking for a used vehicle, but you want the security and confidence that comes with buying a new vehicle with a warranty, than you probably want to look at a certified pre-owned vehicle. As far as non-premium brands are concerned, Toyota’s CPO program offers the best warranty at the best price.
Of course, Toyota’s CPO program wouldn’t be so low-cost if the product was expensive to warranty…but it’s not.
Bottom line: If you’re looking at buying a used Tundra, you might want to think about buying new instead as the price difference isn’t that big (relatively speaking). If you own a used Tundra and you’re thinking about upgrading, you’re going to do well at trade-in…
P.S. I hope no one is getting tired of hearing about the Tundra’s incredible resale value!
Filed Under: Buying a Tundra