Honda and Toyota are both Japanese multinational automobile manufacturing companies. Both companies produce some of the best performing and most reliable cars available in the market. In terms of volume, Toyota is the largest and Honda is the fifth-largest car company in the world.
People often compare Honda vs Toyota resale value for both short and long time periods. In this article, I am going to compare the resale value of both car brands along with some examples. In addition to that, their value retention in comparison with other car brands will also be discussed.
Honda vs. Toyota- a General Resale Value Comparison
Honda and Toyota are both top-performing car brands when it comes to value retention. During the initial years, both car brands have almost similar value retention, but after 5 years Toyota performs slightly better than Honda.
The average residual value of Honda and Toyota cars is shown in the following table.
|Vehicle Age||Honda Residual Value||Toyota Residual Value|
As it can be seen that after 5 years, both car brands have 58% of the residual value but after 10 years Toyota cars have 36% residual value and Honda cars have only 29% residual value. This is where Toyota beats Honda and has an advantage of 7 percent more value retention.
The below graph shows the Honda vs Toyota year-to-year average depreciation. Both graph lines are almost overlapping during the initial years, but Toyota cars perform better in the long run.
Now let’s compare famous Honda and Toyota car models side by side and see which car model outperforms the other.
Honda Accord vs. Toyota Camry
Both cars are very close when it comes to value retention but Honda Accord performs a little better than Toyota Camry.
Toyota Camry has been the best-selling car for many years, and there are plenty of them in the market. Therefore, this huge supply keeps the resale value down. On the other hand, Honda Accord is known for holding its value and comes with excellent performance.
The initial selling price of the Toyota Camry is $28,131 and it depreciates 49 percent after five years. Whereas the initial selling price of the Honda Accord is $32,340 and it only depreciates 42 percent after five years.
|Vehicle Age||Honda Accord Depreciation||Honda Accord Residual Value||Toyota Camry Depreciation||Toyota Camry|
For someone who has a limited budget, Toyota Camry is a better option. But if money is not a problem, then Honda Accord is a better pick and holds its value better. It also has more power and offers larger passenger and cargo space than Toyota Camry.
Honda Civic vs. Toyota Corolla
During the first five years of operation, Honda Civic has better value retention than Toyota Corolla. But Corolla beats Civic in the long run and performs much better during the end of its lifespan.
Both of these models directly compete with each other and have a similar initial selling price. Honda Civic maintenance record is stellar and widely considered a problem-free vehicle. Toyota Corolla also provides great value and ranks in the top 20 cars for best resale value after 10 years.
The initial selling price of the Honda Civic is $23,953 and it depreciates 39 percent after five years. Whereas the initial selling price of the Toyota Corolla is $22,440 and it only depreciates 38 percent after five years.
|Vehicle Age||Honda Civic Depreciation||Honda Civic Residual Value||Toyota Corolla Depreciation||Toyota Corolla|
Honda Civic is slightly more expensive than Corolla but it also has better quality. It is quiet, comfortable, and modern. Whereas Toyota Corolla beats Civic in handling, brakes, and price. If you are looking to buy a new car then Civic is a better option. In case you want to purchase a second-hand sedan then Corolla would be a better choice.
Honda Pilot vs. Toyota Highlander
Toyota Highlander comfortably beats Honda Pilot in value retention. For both short and long time, it has better resale value.
Both of these cars fall under the category of sports utility vehicles (SUVs) and are powered by V6 engines. Honda Pilot is a bit expensive but comes with many high-tech features like a nine-speed automatic transmission that is standard across all the trims of the pilot.
On the other hand, Toyota Highlander is regularly placed in the list of top 20 vehicles with best resale value after 3, 5, and 10 years. The initial selling price of the Honda Pilot is $46,498 and it depreciates 42 percent after five years.
Whereas the initial selling price of Toyota Highlander is $42,387 and it only depreciates 35 percent after five years.
|Vehicle Age||Honda Pilot Depreciation||Honda Pilot Residual Value||Toyota Highlander Depreciation||Toyota Highlander|
Honda Pilot comes with a spacious and family-friendly cabin. It also has an impressive 7.3 inches ground clearance. Whereas Toyota Highlander is also available in hybrid and has a solid list of standard features. So, overall Highlander is a better option in terms of value retention.
Also read: Are Toyota Parts Expensive? (Pricing)
Honda CR-V vs. Toyota RAV 4
Both of these vehicles are compact SUVs and can fit five people with plenty of cargo space still left. The Toyota RAV4 is a hugely popular model and has a fuel-saving hybrid option. Whereas Honda CR-V is more comfortable and has better interior and storage.
The initial selling price of the Toyota RAV4 is $30,373 and it depreciates 40 percent after five years. Whereas the initial selling price of the Honda CR-V is $35,657 and it depreciates 39 percent after five years.
|Vehicle Age||Honda CR-V Depreciation||Honda CR-V Residual Value||Toyota RAV4 Depreciation||Toyota RAV4|
So there is no clear winner here as both vehicles have the same resale value trends. Honda CR-V is well suited for city people and frequent shoppers. For recreational and off-road use Toyota RAV4 would be a better option.
Also read: Where is Honda Made? (The Full List)
Do Hondas and Toyotas Hold Their Value Well Compared to Other Car Brands?
Yes, Honda and Toyota cars hold their value well compared to other car brands. An average car loses around 50 to 60 percent of its value after five years, whereas Honda and Toyota cars only lose 42 percent of their value after 5 years.
Both of these car brands are well known for their reliability and performance. They have a rich history of more than seven decades and people are always looking for good condition Honda or Toyota car models.
They also have low maintenance costs than other car brands and their spare parts are readily available in the market. Honda and Toyota are among the top five in the list of best car brands for resale value after 3, 5, and 10 years.
Excellent quality, high demand, and impressive accolades are the main reasons behind the exceptional value retention of Honda and Toyota cars.
How to Slow Down Your Toyota and Honda Depreciation?
The phenomenon of depreciation cannot be stopped but it can be slowed down by taking below mentioned steps:
- Do not buy a brand new Honda or Toyota vehicle because they depreciate the most in the first year and will lose around 20 percent of their value in the first year alone.
- Always try to keep your car in good condition and never miss the maintenance after essential intervals.
- Try to buy a used Honda or Toyota car with minimum mileage because the more mileage the car has the less it will be worth.
- Maintain the full-service history of your car as it is a great way to reassure your buyer that the car has been well maintained.
- Purchase your Honda or Toyota car with neutral paint colors like black or silver because neutral colors are forever popular and retain more value than exotic paint colors.