If you have ever owned a car, you are probably familiar with the concept of car depreciation. For the uninformed, it is the process by which an automobile’s value drops. Did you know that a new car instantly loses 10 percent of its value as soon as it is driven off? A year after this, the value drops at least another 10 percent. Aside from these, vehicles with limited options or from an unappealing brand will undergo even more depreciation. In fact, it could only take several years before the value is cut in half. Among other things, the value of cars can plummet when the manufacturer retires it. Such depreciation works to the benefit of used car buyers.
That is correct – depreciation is not limited to the first year of a brand-new car. The process continues for the next few years at the average rate of 15% – 25% loss per year. This means that an average car has already lost 60% of the selling price when the fifth year rolls in. Are you thinking of purchasing a car sometime soon? If so, make sure to consult the market. Let us now look at 35 cars with quickly declining retail value and find out why!
If you are the owner of a Smart ForTwo automobile, expect its value to go down a lot after the first year. It is known as an environmental car, but this is where the list of benefits ends. True enough, it does boast of a low gas consumption. However, there is not much space inside the car. It also has a two-speed transmission that many people find unappealing. Although it has been advertised as safe despite its size, most people would rather drive a bigger car with a higher safety rating. Only a year after paying for a Smart ForTwo car, its value will lose 36 percent or approximately $14k.
The Hyundai Genesis is the next item on the list. This is a car that loses its value quickly. First of all, the Genesis was made in the hope of competing with luxury cars. Even though the price point is at par with Lexus and Mercedes vehicles, it just does not come with the brand appeal of other luxury lines. It generally loses 38 percent of the original price in just one year. It might be wiser to buy a used car over a new one. If you want luxury, a one-year-old unit will cost $16,000 less than the original $52,000 price.
The next car on our list is the successful electric car introduced by Nissan. The Nissan Leaf, sadly, has one of the highest depreciation rates out there. There are several reasons why it has such a terrible resale price. You can blame the tax credit set at nearly $7.5k, all sorts of discounts from the dealer, and the abundant leasing of this vehicle. Think twice before you get a brand-new unit!
Nissan Rogue SV
As we all know, Honda and Toyota models are always practical and squarish. The Nissan Rogue comes in as the sporty alternative for people looking for something else. Unfortunately, it suffered a 5 percent depreciation rate after they launched the redesign. Just like the Nissan Leaf, the Nissan Rogue is the victim of high depreciation.
The Mini Cooper sure is an iconic car model. It has plenty of loyal fans but the compact car actually suffers a worse depreciation rate than other similar models. A Mini Cooper straight from the dealer will generally cost you around $20,000. If you purchased a 2015 Mini Cooper, the value has already lost a staggering 29.3 percent. Make sure not to forget about the residual value, as the drop in value is what you really need to consider when buying a car.
Since the gas price problem has alleviated, there are more people interested in buying gas-heavy SUVs. The GMC Yukon is a good contender, but a redesign has dealt a blow to its value. You can buy one at $47k but cost-to-own schemes can raise it up to $70k. In only a matter of a year, the value of these SUVs will drop to 33 percent.
In general, only business owners are likely to be interested in buying a 2015 Chevy Express. After all, the model is a cargo van. We do not recommend buying a brand new one as it will set you back by almost double the original amount you paid for it. Furthermore, a one-year-old Chevy Express has a depreciation rate of 37 percent. If you want to know why, this is likely because there is a limited target audience and it is almost identical to the older model.
The Chevy Impala is a car that we have all heard about before because it is just that popular. As one of the brand’s fleet vehicles, it has a rather high depreciation rate. Many units are actually in use of a rental car or a company car. As you can see, the Chevy Impala is oversupplied. Aside from that, it does not look too attractive or have too many unique specifications. It is not difficult to see why its resale value does so poorly. Especially when you consider the availability of the car and decreasing demand for sedans of this size. A $27k Chevy Impala from last year will now cost 33.5% less.
A one-year-old Volkswagen Beetle will suffer a 37% depreciation rate. It’s also interesting to learn that the value of the diesel Volkswagen Beetle has fared worse than the gasoline ones. Why? There were reports that Volkswagen added a software cheat to the diesel Beetle units for the emission tests. Since 2015, the diesel ones have suffered twice the depreciation rate of its gasoline counterparts. On the bright side, you will likely find an excellent deal on the used car market.
We are willing to bet that the Lincoln MKS will become obsolete sooner than later. The model performed rather poorly when it comes to sales but luxury car fans on a budget have lucked out. It was not very popular so it has a depreciation rate of 30.4 percent. Not unlike the Genesis, one can get a bargain with a used MKS.
The Kia Optima has just as many cons as there are pros. It is true that the vehicle boasts a spacious cabin, great design, dependable engine, and numerous upgradable features. Unfortunately, it has a low fuel efficiency rating and a rate of depreciation of 35 percent. If you are interested in buying an Optima, make sure to keep these caveats in mind.
Up next, we have the Kia Cadenza. It is a good idea to look for this car in the used car market since it has a high depreciation rate of 38 percent. It’s certainly not the only car from the brand on our list. If you are wondering why, this is because Kia has yet to win car buyers over.
The Jaguar XK, like the Lincoln MKS, has nearly been rendered obsolete. This is because of the updated and fancier F-type model that has won the hearts of buyers. You could have afforded a brand-new one from the dealer for $84.5k but it has since lost 29.2 percent of its retail price.
If you are on the lookout for a bargain, look no further than the original pony car. Play your cards right and you can get this excellent car for a song. The Mustang GT is a great vehicle but many people have forgotten about it the moment the new version was released. Nonetheless, it still has a cool vintage design and a powerful V8 engine that will satisfy even the pickiest driver. While the original price tag is set at $35k, you can easily find a used one for $10k.
Mid-sized sedans have long been the preferred mode of transport of families. If you are in this target market, the Hyundai Sonata is a great choice as it offers lots of power, a roomy cabin, an appealing design, and a decent performance. You can get a brand new one from $23k to $30k. Bargain seekers should know, however, that it is possible to buy a used 2011 Sonata for only $8k!
Lexus ES 350
Everyone dreams of owning their own Lexus, right? Many lucky owners like the brand for the luxury, smooth design, great handling, and good speed. However, the Lexus ES 350 was a bit of a departure from the usual design of the company. When it comes to appearance, it was considered more boring and average than other models. This is likely why it suffers a value drop of $9.1k after a year.
Cars.com has revealed that it costs a little more than $41,000 to own a 2015 Dodge Charger in the first five years. You can buy it for $26,000 but keep in mind that it experiences a depreciation of around 45 percent after the first year. This was to be expected since it is not a particularly interesting or unique vehicle. What else can you expect when there are more popular and appealing competitors out there?
The sporty and dashing Chevy Camaro loses its value quickly and it ranks high on the list. After owning it for only 12 months, it experiences a value drop of 39 percent. The Chevy Camaro can be purchased for approximately $23.7K but experiences a loss of more than $8,000 in the first year of ownership. You might want to rethink your plans if you want to get a brand-new one. It has many loyal fans, and this might be why the sports car experiences such a high level of depreciation.
We do not only have luxury cars and sports cars on our list. The Mitsubishi Lancer is a rather affordable vehicle but it still experiences a 35 percent drop in value after the first year. However, you should know that even though it has a lower price tag than the Mini Cooper, it still costs $5k more to own. If you want to buy a Lancer, this is something important to remember.
There are many popular models from Cadillac and the CTS is one of them. The luxury sedan is known for its solid design and engineering that makes it a trusty roadster. Sadly, it has a high rate of depreciation at 36.9 percent. A 2015 CTS bought upon its release will already have half its value slashed by now.
Chrysler 300 C
The Chrysler 300 C is one of the biggest names when it comes to luxury sedans. It was introduced in 2005 and its debut kick-started the revival of the muscular yet luxurious American classic sedans. Many people had been attracted by the variety of engines like the V6, V8, and Hemi V8. If you get it brand new, you will have to shell out $40k. For people who find that too steep, worry not because you can get a used one for less than $20k.
The Regal is one of Buick’s prized creations as it reintroduced the brand as a luxury compact sedan manufacturer. Basically, it is the American version of the European Opel Insignia complete with a Buick badge. It did not take long before the Regal became a popular model, thanks to its excellent add-on features, drivetrain options, and powerful engines. It retails for a little less than $30k but you don’t need to shell out so much since used ones are available for somewhere around $10k.
Fiat 500 L
Fiat launched the 500 L in 2014 but the family car failed to deliver on the promises the manufacturer made. This negatively affected buyer perception and along with it, the price. Despite its easy handling, high visibility, roominess and fine trunk, there were too many flaws that cannot be ignored. Among other things, it comes with a small engine and a substandard performance. With a retail price of $20k, it has experienced significant depreciation and you can now find a used 500 L for $14k or less.
Jaguar cars also experience high depreciation rates. The XF is yet another mid-sized sedan that you can get for cheaper on the used car market. In 2009, it was released at the base price of $50k. However, many customers purchased add-ons and ended up shelling out $60k. If the V6-300hp engine of the base model does not appeal to you, it is also possible to get the performance model with its V8-420hp engine. A used XF from 2009 or 2010 only costs around $15k now and it is a bargain with its excellent safety features, sharp design, powerful engine, and leather interior.
The Lincoln MKZ was introduced to compete with executive sedans such as the Mercedes C-Class and the BMW 3-Series. Although it boasted of a powerful engine and topnotch equipment, it never made it quite as big as the others on the market. The 263hp engine and leather interior did not make up for the fact that it was not as speedy or polished as the other models. These days, you can find a used MKZ for $15k, a huge drop from its retail price of $35k.
The Nissan Maxima would make for a great choice for a luxury car. Among other things, it is comfortable, powerful, roomy, and well-equipped. In 2016, a new generation was released and the update includes great styling, new technology, and a V6-300hp engine. A brand-new unit will cost you $32k but second-hand ones now go for a little more than $20k. It is definitely a good deal since a used one will still be under the manufacturer’s warranty!
Kia has also entered the luxury sedan competition. This Korean rival of the Mercedes S-Class and BMW 7-Series boasts of high-end features, a great engine, and creature comforts. Like other luxury cars, it has a high for sale price, but that depreciates significantly later on. When you survey the market, you will find that it’s cheaper than other luxury cars with its base price of $60k. However, you should keep in mind that this is one of the most expensive Kia cars ever made. At the moment, you can probably find a 2-year-old K900 for a little more than $30k.
The VW Passat is actually a mid-sized sedan instead of a luxury car. These days, you can buy a used unit for a fraction of the original price. It has VW’s trademark style and quality, a wide array of engines, and cool features. Unfortunately, it was affected by the emission cheating issue that came out. There was a recall for many Passats last year and the value of the diesel units have since gone down. From $25k. it is now easy to find a secondhand Passat that goes for $12k to $13k.
This Audi sedan charmed luxury car fans with its elegance, luxury features, powerful engines, and Quattro AWD. Interestingly, it was made with aluminum so it is more agile and lighter than other similar cars. The current model has been for sale for quite some time now but its 372hp engine and short wheelbase holds up nonetheless. You can buy a brand-new one for $80k but you can get a good deal on the used car market. A 2012 unit will cost around $30k to $40k but you can get the W12 model for even cheaper than that.
The XTS was a mid-sized car released by Cadillac in 2013. If you thought the elegant design, front-wheel drive and 304hp engine guaranteed success, you would be wrong. It simply did not live up to the CTS, ATS, or the CT6. For many people, the XTS was something of the middle child in the lineup. If you buy it brand-new, it will cost around $45k. However, it is possible to find a secondhand unit for sale at half the price!
Acura introduced the ZDX as a crossover with a sporty appearance, low roofline, all-wheel drive, and a great engine. Sadly, it was only for sale from 2010 until 2013. The car was not well-received because many found its appearance too strange and some have even gone so far as to call it ugly. It was introduced at the price of $35k but it is now for sale on the used car market at around $13k.
The Maybach 57 and 62 are definitely some of the most prestigious vehicles in the world. The super luxury cars have experienced some eye-popping depreciation rates, however. In 2006, the Maybach 57 had a price tag of nearly $400,00 and the Maybach 62 S cost $500,000. It’s hard to believe that you can now get these sedans for around $50k on the secondhand market! Talk about a discount.
Good interior room? Check. Quality? Check. Performance? Check. The Cadillac SRX is a great choice if you want a suave SUV. You can enjoy the 265hp engine as well as the luxury features for $40k. However, it is available for an even lower price if you are fine with buying a secondhand unit. You might be enticed by the fact that it can go for around $15k!
Are you looking for a multi-purpose vehicle that comes with great towing capacity, a lot of features, and 8-seating capacity? If so, you’re in luck. Look no further than the Chrysler Aspen. It’s a great buy that offers style and comfort in rugged packaging. Its popularity plummeted with the rise of the stylish SUVs. In 2009, it went for $40k. However, a used unit will only set you back by $12k to $13k.
Let us talk about Mercedes two-door cars. In particular, let us discuss the most prestigious the brand has to offer: the CL series. Although the SL is way sportier, the CL is a powerful car with luxury features and 4-seating capacity. As you might expect, such a topnotch car goes for sale at a jaw-dropping amount. If you buy a brand-new one, it will set you back by more than $100k! However, a secondhand CL-Class will cost you only $25k. Why buy an economy sedan for the same amount when you can have something like this instead.