Depreciation is a silent tax on car ownership, but for buyers, it can mean significant savings. While some vehicles hold their value well, others plummet in price, creating opportunities for smart shoppers. The Nissan Armada, a full-size SUV, stands out as one of the fastest-depreciating vehicles on the market – and that’s exactly why it deserves attention.
Why Nissan Struggles with Resale Value
Japanese brands like Toyota, Honda, and Subaru dominate resale rankings due to their reputation for reliability and longevity. Nissan, however, lags behind, ranking 14th out of 19 mainstream brands in CarEdge’s assessments. This isn’t a reflection of inherent flaws in their vehicles but rather a matter of market perception. The Armada, in particular, suffers rapid depreciation, losing 37.87% of its value in just the first year, translating to roughly $27,918. By year three, it depreciates by 53.94%, and after five years, retains only 33.84% of its original price. In contrast, the Toyota Sequoia, its primary competitor, depreciates at half the pace.
The Armada’s Value Proposition: Underrated and Capable
Despite its rapid depreciation, the Armada offers a compelling value proposition for used car buyers. The previous generation (2017 model) boasts a regal design with rugged cues, offering a near-luxury experience without the luxury price tag. Inside, even base models (SV) are well-equipped. Higher trims (SL and Platinum) feature premium materials, including leather and soft-touch surfaces. The Platinum trim is particularly luxurious, with rear-seat entertainment, a digital rearview mirror, and wireless headphones.
Mechanically, the Armada is remarkably reliable. Its 5.6-liter V-8 engine, producing 400 horsepower and 413 lb-ft of torque, is known for durability. RepairPal gives it a 3.5/5 rating, with annual maintenance costs averaging just $550 – lower than the segment average of $784. While its handling isn’t sporty, the Armada prioritizes comfort with a soft, plush ride. It also offers a respectable towing capacity of up to 8,500 pounds when equipped with the optional Trailering Package.
Why Does It Depreciate So Quickly?
The Armada’s depreciation isn’t due to mechanical issues but rather a combination of factors. Its design, while attractive, hasn’t resonated as strongly with consumers as competitors like the Toyota Sequoia or domestic rivals such as the Chevrolet Tahoe and Ford Expedition. The rapid depreciation makes it an excellent value for those who prioritize practicality, space, and reliability over resale value.
The bottom line: If you need a spacious, capable, and reliable full-size SUV without the premium price tag, a used Nissan Armada is an overlooked gem that depreciates faster than most — making it an ideal choice for savvy buyers.
