The SUV With the Best Resale Value Isn’t From Toyota or Lexus
A well-equipped vehicle that’s kept in good condition typically retains more value over the years compared to its rivals. High resale values can also be attributed to a car’s popularity, as well as its potential to last upwards of 200,000 miles. It’s fairly common to associate all of these qualities with a reliable Toyota or Lexus vehicle. However, in terms of best resale value, there’s one Ford SUV that beats every other alternative.
Which SUV has the best resale value?
Due to increased consumer demand and a limited supply, the Ford Bronco has the best resale value. Per KBB, the Bronco retains approximately 65.4% of its value over the first five years of ownership. That’s 20% higher than the industry average of 45%. The Ford Bronco tied closely with the Toyota 4Runner, which has an average resale value of 64.4%. Both the Jeep Wrangler and the Subaru Crosstrek have estimated resale values of 61%.
Two-door versions of the Ford Bronco Base retail for $34,890, and the four-door version costs $38,040. Ideally, this means that you should be able to find a Ford Bronco for around $23,000 in a few years. For now, low-mileage examples of several Bronco trims are priced at $40,000 or more (according to CarFax).
Why is a Ford Bronco so expensive?
Hype for the new Ford Bronco had been building up since 2017, so buyers were already extremely eager to get their hands on one. Demand for the Ford Bronco has remained consistently high since its release, prompting Ford to frequently pause reservations. Even today, you currently can’t order a 2023 Ford Bronco Base directly from Ford’s website.
Even if you manage to snag a slot, you’ll likely be waiting several months to receive your new vehicle. The Ford Bronco has a history of production hiccups, particularly concerning semiconductor chips and faulty hardtops. The delays lasted so long that some reservation holders were expected to wait on a Bronco from the next model year.
In theory, buying a Ford Bronco off a dealership lot should be an easier experience because there’s little to no waiting involved. However, since the Ford Bronco’s production numbers are typically low, dealerships often sell these cars with outrageous markups. These price increases, some of which are $10,000 above retail, can be imposed even after a sale agreement has already been made.
Higher trims with more off-roading equipment are typically more subject to markups than the cheaper models. A four-door Bronco Badlands with locking differentials and Bilstein shocks already has an MSRP of nearly $50,000. Wildtrak buyers will have to pay at least $10,000 for extra perks like performance Fox shocks and the 315-hp twin-turbo V6. A fully-loaded Ford Bronco Raptor with its heavy-duty frame and every single off-roading feature available (plus a few extra) retails for $86,580.
Is the new Ford Bronco reliable?
Despite retaining its value with ease, your average Ford Bronco probably isn’t as dependable as a Toyota or Lexus. The Bronco has already been included in 14 recalls, most of which were just released this year. As many as 175,550 models could have defective seat belts in the first row. Several hundred Ford Broncos have also been recalled over improperly fastened lug nuts, steering wheel issues, and an unsecured transmission.
A history of recalls doesn’t necessarily mean that a vehicle should be avoided. Even Toyota and Lexus cars aren’t immune to factory defects. However, the fact that the Bronco has had so many recalls within just a few years is a bit concerning. Even so, judging by its sky-high demand and projected resale value, it doesn’t appear the Ford Bronco’s popularity will die down anytime soon.