The Cheapest Toyota Car Also Has Great Resale Value
In the SUV era, Toyota still sells plenty of sedans. Indeed, the popular Corolla is one reason for the auto giant’s success in the sedan segment. This compact car offers many positive traits shoppers want in a vehicle, including reliability, safety, and affordability. Not only is the Corolla the cheapest Toyota car, but it also has excellent resale value. Here’s how much it retains its value.
The Corolla is the cheapest Toyota car in the lineup
The Japanese auto giant has over a dozen vehicles in its U.S. lineup, and the Corolla is the cheapest Toyota car by far. The standard 2023 Corolla has a starting MSRP of only $21,700. The only other models with a base price in that range are different versions of the car, such as the Corolla Hybrid and Corolla Hatchback, both retailing for around $23,000.
The new Corolla Cross subcompact SUV is also one of the cheapest Toyota vehicles, starting at $23,600. Prices for the remaining vehicles in the lineup jump considerably after that. The next most affordable Toyota is the Camry, which costs at least $26,300. After the midsize sedan, there are popular models like the RAV4 compact SUV ($28,300), the Tacoma midsize pickup truck ($28,600), and the 4Runner midsize SUV ($40,000). The $60,000 Sequoia full-size SUV is Toyota’s most expensive passenger car, almost three times pricier than the Corolla.
In addition, the automaker seems committed to keeping its compact car as cheap as possible. The 2024 Toyota Corolla starts at $21,900. That’s only $200 more than the previous model year and a smaller percentage increase than the inflation rate.
What is the 2023 Toyota Corolla’s resale value?
On top of being the cheapest Toyota, the Corolla has excellent resale value. J.D. Power gave the 2023 model a “great” score of 81 out of 100 in that category. Edmunds concurs, estimating that a used 2023 Corolla with 12,000 miles on the odometer has nearly the same value as a new one.
Edmunds estimates that a standard Corolla has a value of about $22,000 when it’s traded in. There’s some slight variance depending on the car’s condition, but $22,000 at trade-in is the average. The site says a 2023 Corolla has even more value when sold to a private party. It estimates that the fair price for a used 2023 Corolla will be $24,350 in 2024.
What is car resale value and depreciation?
The Corolla’s excellent resale value reflects its low depreciation — common in Toyota vehicles. Resale value is the value of a used car when sold, and depreciation measures how much value a car has lost over time. The type of car and how the owner maintained it can also affect the depreciation rate.
Edmunds says the average new car loses 60% of its value to depreciation after five years. Losing less value than that means a vehicle has an above-average resale value. The Corolla has above-average resale value because it will lose only about $9,500 of its value over five years. That’s less than half its value lost to depreciation. So, Corolla owners can expect to get a good price when selling the cheapest Toyota.
