Owners of pickup trucks and SUVs are bracing for a significant decline in vehicle value, as data from the 2025 automotive market reveals unprecedented depreciation rates. The average depreciation for these vehicles is projected to reach 30% within the first three years, a stark increase from 2020 levels when the depreciation rate hovered around 20%. This trend is raising alarms among consumers and industry experts alike, impacting resale values and the overall market landscape.
Understanding the Depreciation Trends
The 2025 market data indicates that popular models like the 2021 Chevrolet Silverado 1500 and the 2022 Ford Explorer are experiencing sharp declines in value. These vehicles previously enjoyed robust resale prices, bolstered by high consumer demand during the pandemic. However, as supply chain issues have eased and new vehicle inventories have stabilized, the once booming resale market is showing signs of cooling off.
According to a recent report from Kelley Blue Book, the average resale value of a three-year-old pickup truck has declined by approximately $4,500 compared to the previous year. This trend is particularly concerning for consumers who purchased these vehicles at peak prices during the COVID-19 pandemic, where prices soared due to limited availability and high demand.
Market Factors Driving Depreciation
Several factors are contributing to the steep depreciation rates for pickup trucks and SUVs in 2025. One major influence is the rising interest rates, which have surged to an average of 7.5% for auto loans. Higher financing costs are dissuading potential buyers from entering the market, resulting in decreased demand for used vehicles.
Additionally, the growing popularity of electric vehicles (EVs) is reshaping consumer preferences. As more manufacturers introduce electric pickups and SUVs, traditional gasoline models are facing increased competition. The anticipated arrival of models like the 2024 Ford F-150 Lightning and the 2024 Rivian R1T is further complicating the market for existing gasoline-powered vehicles.
Impact on Owners and the Used Vehicle Market
The implications of this depreciation trend are significant for vehicle owners. Many individuals who financed their pickups and SUVs are now finding themselves in negative equity situations, where the vehicle’s market value is less than the remaining loan balance. This creates financial strain and may compel owners to hold onto their vehicles longer than initially planned.
For the used vehicle market, the depreciation is leading to a surplus of inventory, as dealers struggle to balance their stock. According to the National Automobile Dealers Association (NADA), used vehicle prices have dropped by an average of 15% over the past year, a trend that is likely to continue as more consumers look to offload their depreciating assets.
Expert Opinions and Future Outlook
Industry analysts are urging consumers to reassess their vehicle purchasing strategies given the current market climate. “It’s crucial for buyers to understand that the traditional appeal of pickup trucks and SUVs may not translate into strong resale values in the near future,” says Jessica Caldwell, Executive Director of Insights at Edmunds. “As the market evolves, consumers need to prioritize long-term value rather than immediate gratification.”
Looking ahead, experts predict that the depreciation rates could stabilize in the next few years, particularly as more electric models gain traction. However, the immediate future appears bleak for conventional pickups and SUVs. The transition towards electrification is likely to accelerate, placing further downward pressure on the resale values of traditional models.
Advice for Current Owners
For current pickup and SUV owners, the best course of action may be to evaluate their vehicles’ resale potential sooner rather than later. Selling now, while demand still exists for used vehicles, might mitigate some losses associated with depreciation. Experts recommend getting a professional appraisal to determine the current market value and exploring multiple selling platforms to maximize return.
Additionally, owners should consider the benefits of vehicle maintenance and improvements, which can enhance resale value. Keeping up with regular service and addressing minor repairs can make a significant difference when it comes time to sell or trade in.
Conclusion: Take Action Now
The sharp depreciation rates facing pickup and SUV owners in 2025 should not be taken lightly. With an average resale value decline of 30% looming and rising interest rates complicating new purchases, now is the time for consumers to assess their vehicle ownership strategies. As the automotive market continues to evolve, being proactive could help minimize financial losses in an uncertain environment. Don’t wait—evaluate your options today before the market shifts further in 2026.