The Cheapest Toyota SUV of 2023 Beats Its Popular Namesake in Resale Value
The Toyota Corolla, synonymous with reliability, efficiency, and affordability, has earned its place among the world’s top-selling cars. With a legacy spanning over a half-century, this economical icon paved the way for the Corolla Cross subcompact SUV. But despite being a recent addition to Toyota’s lineup, the Corolla Cross already boasts better resale value ratings than its sedan inspiration.
Let’s compare the 2023 Toyota Corolla and Corolla Cross’ resale value and depreciation.
Understanding vehicle resale value and depreciation
Resale value is the estimated value of a vehicle in the future, often presented as a percentage of its initial purchase price. Meanwhile, depreciation is the rate at which a vehicle loses its value as time passes. Typically, a car’s first year of ownership sees the steepest depreciation, averaging 15% to 20%. In general, a strong resale retention rate is 50% or higher after three years of ownership.
Factors that can affect a car’s resale value include the following:
- Make and model: If you own a well-known make and model, it will likely hold its value longer than one that isn’t as popular.
- Condition: A vehicle with normal wear and tear will retain its value better than one that has been in an accident or used for work. For example, a truck that’s frequently driven off-road will sustain more damage than one driven for pleasure or commuting.
- Age: Typically, the older the vehicle, the lower its value. However, there are exceptions, such as classic cars.
- Mileage: Vehicles with higher mileage likely need more repairs, lowering their value.
2023 Toyota Corolla vs. Corolla Cross resale value and deprecation
The 2023 Toyota Corolla lives up to its reputation of holding an above-average resale value. J.D. Power gives it a “great” resale score of 81 out of 100, indicating a strong predicted resale value. Edmunds’ data echoes that sentiment with a five-year depreciation of -$10,009, based on a good-condition standard Corolla sedan with a $23,856 MSRP.
Despite being a newcomer compared to the Corolla, the 2023 Toyota Corolla Cross has wasted no time proving its mettle in the resale value domain. J.D. Power gives it an even higher resale score of 88, indicating strong appeal for future used-car buyers. Edmunds’ data shows a five-year depreciation of -$10,438, based on a good-condition standard Corolla Cross with a $24,616 MSRP.
Edmunds says new cars typically lose 60% of their MSRP in the first five years of ownership. The lower this percentage, the better. According to the above numbers, the 2023 Corolla will lose about 58% of its MSRP in that timeframe. And the 2023 Corolla Cross will lose about 57.6%.
It’s important to note that these figures are estimates. Still, they bode well for the two popular Toyotas.
So, why does the Corolla Cross boast a higher resale score than the Corolla? It could be attributed to consumers’ preference for SUVs over sedans, boosting interest in vehicles like the Corolla Cross. It also has the advantage of providing greater interior volume, reflected in more headroom, legroom, and cargo space, than the Corolla.
Overview of the 2023 Corolla Cross
The Corolla Cross comes in three trim levels: the L base model, the mid-range LE, and the top-tier XLE. A 169-hp 2.0-liter four-cylinder engine provides power and efficiency. In addition, the 2023 model offers available all-wheel drive. The standard powertrain gets a solid 32 mpg combined and a highway range of 409 miles on a full tank. Meanwhile, the 2023 Corolla Cross Hybrid achieves even better fuel efficiency. Plus, every trim includes Toyota Safety Sense 3.0, Amazon Alexa, Apple CarPlay, and Android Auto integration.
Both the 2023 Corolla and the 2023 Corolla Cross have above-average resale values, proving that Toyota vehicles continue to deliver quality. While the Corolla has a well-earned reputation for durability and value retention, the Corolla Cross, as a newer and more versatile option, has some impressive numbers as well.
That suggests shoppers seeking a Toyota with strong resale value should consider the Corolla Cross as a viable alternative to the Corolla. Whether you lean toward the time-tested sedan or the fresh appeal of the crossover, Toyota offers vehicles that hold their value well.