- The Toyota Highlander is one of the strongest value-retention vehicles in the midsize SUV segment, with some analyses projecting just 21% depreciation after five years.
- Depending on trim level and valuation methodology, five-year residual values range from approximately $22,863 to $36,496, reflecting the Highlander’s consistently strong resale demand.
- Toyota’s reputation for reliability, durability and family-friendly practicality helps the Highlander maintain above-average resale value and lower long-term ownership costs.
The Toyota Highlander has built a reputation as one of the strongest performers in the midsize SUV segment when it comes to holding its value over time, and the data consistently backs this up across multiple independent analyses, even when the specific numbers differ depending on methodology. Whether you are a current owner wondering what your Highlander might be worth in five years, or a prospective buyer trying to decide between new and used, understanding how this vehicle depreciates, and why it depreciates more slowly than most competitors, can directly impact your financial decision making. This guide pulls together the available depreciation data, explains the differences between the various estimates, and offers practical guidance for buyers at every stage of ownership.
The Headline Number: 21 Percent Depreciation Over 5 Years
One of the most favorable figures available for the Highlander comes from an analysis showing the vehicle depreciates just 21 percent after five years, which translates to a potential resale value of around 36,496 dollars depending on the original purchase price and condition. This level of value retention is described as ranking the Highlander among the top 20 cars for maintaining value over 3, 5 and 7 year periods, a notably strong showing in a segment where many competitors lose considerably more of their original value over the same timeframe.
This same analysis notes that the Highlander’s depreciation is slower than average, and points to year over year consistency as evidence of sustained demand. Specifically, from 2016 to 2020, the Highlander sold for more than the usual rate for five consecutive years, which the analysis frames as proof that buyer trust in the vehicle goes beyond a single standout model year and reflects a sustained pattern of demand.
The practical takeaway from this figure is straightforward. A Highlander that retains nearly 80 percent of its value after half a decade represents meaningfully less financial loss compared to vehicles that might retain only 50 to 60 percent over the same period, and that difference can translate into thousands of dollars of additional equity when it comes time to sell or trade in.
Read: Toyota Highlander Road Trip Review 2026. What Stands Out After Hundreds of Highway Miles
The 2026 Model Year Projection
Looking specifically at the current 2026 model year, a separate projection paints a slightly different picture in terms of raw numbers, though the underlying message about strong relative performance remains consistent.
According to this projection, a 2026 Toyota Highlander has a 5 year cost to own of 75,056 dollars. Within that figure, the vehicle is expected to depreciate 24,091 dollars over five years, leaving a residual value of 23,274 dollars. Out of pocket expenses over the same period, covering things like fuel, insurance, maintenance and financing, are expected to total 50,965 dollars.
Importantly, this same source explicitly states that Toyota Highlander resale value is above average for the segment, even while placing the 2026 model in the middle 26 to 75 percent range for overall cost to own among midsize SUVs and crossovers. This middle of the pack cost to own ranking, combined with an above average resale value statement, suggests that while the Highlander is not necessarily the cheapest vehicle to operate day to day in this category, its ability to retain value at resale specifically stands out as a relative strength compared to its direct competitors.
The 2025 Model Year for Comparison
For buyers looking at a 2025 Highlander rather than the brand new 2026 model, the depreciation numbers shift accordingly, reflecting the one year head start on the depreciation curve that a 2025 model already has.
A 2025 Toyota Highlander is projected to depreciate 18,407 dollars after 5 years, with a residual value of 22,863 dollars from an original MSRP of 41,270 dollars. Out of pocket expenses for this model year are estimated at 39,749 dollars, bringing the total 5 year cost to own to 58,156 dollars. Within this breakdown, insurance represents the largest single out of pocket category at 15,820 dollars, followed by fuel at 7,981 dollars and maintenance at 5,574 dollars.
Notably, this 2025 model year projection places the Highlander in the top 11 to 25 percent for cost to own among midsize SUVs and crossovers, a stronger relative position than the 2026 projection’s middle tier ranking, though both projections still point toward residual values in a similar range, somewhere between roughly 22,800 and 23,300 dollars after five years regardless of which specific model year is being considered.
Read: Is Toyota Highlander Hybrid Worth Buying? Truth About Ownership Costs and Benefits
Toyota Highlander Resale Value — Complete Reference Chart
| Data Point | 2026 Model Year Projection | 2025 Model Year Projection | Top 20 Analysis (General) |
| 5 Year Depreciation Amount | 24,091 dollars | 18,407 dollars | Approximately 21 percent of value |
| 5 Year Residual Value | 23,274 dollars | 22,863 dollars | Approximately 36,496 dollars |
| Original MSRP Reference | Approximately 47,000 dollars | 41,270 dollars | Varies by trim and configuration |
| 5 Year Cost to Own | 75,056 dollars | 58,156 dollars | Not specified |
| Out of Pocket Expenses (5 yr) | 50,965 dollars | 39,749 dollars | Not specified |
| Segment Cost to Own Ranking | Middle 26 to 75 percent | Top 11 to 25 percent | Top 20 overall for value retention |
| Resale Value Rating | Above average for segment | Above average for segment | Top 20 of all vehicles, 3, 5, 7 year |
| Insurance Cost (5 yr, 2025 estimate) | Not broken down | 15,820 dollars | Not specified |
| Fuel Cost (5 yr, 2025 estimate) | Not broken down | 7,981 dollars | Not specified |
| Toyota Brand Average Depreciation (5 yr) | 35 percent | 35 percent | 35 percent |
Why the Numbers Differ Between Sources
Buyers comparing these figures may notice that the percentage based estimate of 21 percent depreciation appears considerably more favorable than the dollar based projections for the 2025 and 2026 model years, which suggest depreciation in the range of 18,000 to 24,000 dollars on MSRPs between roughly 41,000 and 47,000 dollars, working out closer to 40 to 50 percent in raw percentage terms.
This apparent discrepancy comes down to differences in methodology, including which trim levels and configurations are used as the baseline, whether the analysis is based on actual market transaction data versus projected estimates, and what time period and sample of vehicles each analysis draws from. The percentage based figure showing 21 percent depreciation may reflect a broader historical average across multiple model years and trims, while the cost to own projections for specific 2025 and 2026 models represent forward looking estimates for those particular configurations.
Regardless of which specific figure is most accurate for any individual vehicle, the consistent thread across every source is that the Highlander performs better than the Toyota brand average, which sits at 35 percent depreciation after 5 years, and better than the broader midsize SUV segment, with resale value consistently described as above average and the vehicle consistently placing in top tier rankings for value retention.
Read: Best Toyota Highlander Trim to Buy 2026. Finding the Perfect SUV for Your Family
Buying Used: Where the Value Sweet Spot Lies
For buyers considering a used Highlander specifically to avoid the steepest portion of the depreciation curve, the data offers some useful guidance.
One depreciation calculator example notes that purchasing a Highlander that is already 2 years old compared to buying new could save approximately 12,887 dollars, while still leaving the vehicle with plenty of useful life remaining. This aligns with the broader principle that the first year or two of ownership typically absorbs the steepest portion of any vehicle’s depreciation curve, and a Highlander that has already passed through that initial drop offers a meaningfully lower entry price while retaining most of its practical value and remaining lifespan.
The same calculator illustrates that depreciation costs over a 3 year ownership window starting from a 2 year old vehicle can total around 6,755 dollars, considerably less than the depreciation a new buyer would experience over a comparable early ownership period. This pattern suggests that vehicles between roughly 2 and 4 years old often represent a depreciation sweet spot, where the buyer avoids the steepest losses while the seller has already absorbed much of the early hit.
What This Means for Highlander Owners and Buyers
Whether you are evaluating the Highlander as a new purchase, considering trading in your current model, or shopping the used market, the overarching conclusion across all available data points in the same direction. The Highlander holds its value better than the average vehicle in its class, better than the average Toyota, and well enough to consistently rank among the strongest performers for value retention in independent analyses.
For new buyers, this means a Highlander purchased today is likely to return a meaningfully higher percentage of its original cost at resale compared to many competitors, which can translate into a lower effective cost of ownership once that resale value is factored in. For used buyers, the consistent year over year demand documented in some analyses suggests that even a Highlander several years old is likely to retain solid value going forward, making it a relatively low risk purchase from a depreciation standpoint. And for anyone weighing the new versus 2 year old decision specifically, the data suggests there is a genuine financial argument for letting someone else absorb that first significant depreciation hit before buying in.
