The formula for calculating the depreciation of a Ford F-150 can be simplified as follows:
- Initial purchase price (P) of the vehicle.
- Depreciation rate (R) per year: The average rate of depreciation of the Ford F-150 is 24% after 5 years which means the yearly depreciation rate is around 4.8% and 11% depression per year after 5 years.
- The number of years (n) after the purchase: If you want to calculate the depreciation after 5 years, then n = 5.
The formula for the value of the vehicle after n years (A) is A = P * (1 – R/100)^n
The formula for the depreciation amount (D) is: D = P – A
So, to calculate the depreciation, you need to input the initial purchase price and the number of years after the purchase, and then apply the above formulae.
Please Note: There are a few assumptions with this depreciation calculator, the first is the 24% depreciation rate is constant and doesn’t change and the Truck stays in good condition with an average of 12 000 miles driven a year.
F150 Depreciation Chart
Factors Affection Ford F150 Depreciation Rate
Now, There are a couple of various factors that can affect how much each f150 depreciates, here are the 5 main ones
1. Overall Condition
The first thing that can affect how much your F150 depreciates is its overall condition. If you have a truck that’s in great shape, then it will most likely hold its value better than one that’s not.
This includes the condition of is the interior and exterior. If the interior is clean and free of stains (seats are well looked after) and other things, then that can help with your F150’s value. The same goes for the exterior, it should be free of dings and scratches to keep its value in good condition.
2. Engine and Performance
Another thing that can affect how much your F150 depreciates is the engine and performance. This includes its condition of it, how well it runs, are there any issues.
The engine is the heart of any truck, so if it works well and doesn’t have any issues then that can help with your F150’s value.
3. Service History
The service history is important for any vehicle to maintain its value. It shows that the owner has taken good care of the F150 and it will continue to do so.
Having regular maintenance done on your car is something that’s important for everyone, as it helps keep everything in working order.
And an up-to-date service history record will definitely affect the value of your f150.
4. Warranty Status
The warranty status is important for a number of reasons, but mainly because it shows that the F150 has been looked after by the dealership and hasn’t had any major problems.
If there are any issues with the vehicle then this will be covered under warranty for a certain period of time.
This is pretty obvious but can be a bit misleading in my opinion. The mileage on a vehicle is obviously an important factor, but it’s not always a good indicator of how well the vehicle has been looked after.
However, mileage is still one of the main factors that affect the depreciation rate.
Do F150s Hold Their Value?
The short answer is yes, with an average depreciation of 24% after 5 years, which is incredible given how much value most luxury vehicles lose in the first 3-5 years.
So F150s do hold their value well, and I wouldn’t worry too much about buying a used F150. The only caveat is that the older ones might not hold their value as well as newer models, especially if you’re looking for one of the special edition trucks like the King Ranch or Platinum.