Are you planning to buy a brand-new or used car? If so, you need to brush up on car depreciation, the process by which the value of a car drops. Apparently, bringing your car home will already cause it to lose 10 percent of its value. The vehicle then loses 10 percent or more by the time you have owned it for a year.
There are several factors that will affect the rate of car depreciation. For one thing, cars with limited options or those from unattractive lines might have their price reduced to half in just several years. The moment a car model is retired by the manufacturer, its value goes down. It is important to keep these things in mind when buying used cars.
As a matter of fact, depreciation is not just limited to the first year. Your brand-new vehicle will likely experience value depreciation in the following four years with an average loss rate of 15-25% every year. This means that a vehicle will only retain 40% of the original price at that point.
It is important to survey the market if you plan to buy any vehicle. Here are 35 cars who have experienced significant depreciation rates and the reason behind this.
Smart ForTwo
It will take only a single year of owning the Smart ForTwo vehicle before you see its value drops down significantly. Even though the car gets advertised a lot as an environmental car, this is practically the only thing it deserves credit for. True enough, the gas consumption is astoundingly low, but the size, transmission, and safety rating do not appeal to most people. If you want to know why, keep in mind that it is very cramped inside, the transmission is only two speed, and the safety rating is considerably lower than the average mid-sized car. As you can see, there is very little reason to get it aside from environmental reasons. Can you believe that it already loses $14k or around 36 percent of its value after one year?
Smart ForTwo
Hyundai Genesis
Next, we have the Hyundai Genesis. It goes without saying that this car experiences a high and fast rate of depreciation. It attempted to compete with other luxury vehicles, though it did not attract the target market because of its lack of brand appeal. Nonetheless, the price tag on this model is close to a Mercedes or Lexus! This might be why it experiences a 38% loss in value after the first year. Obviously, you will get a better deal if you buy a used car instead of paying for the full price of $52,000. After all, a Genesis will already be worth $16,000 less once it turns one-year-old.
Hyundai Genesis
Nissan Leaf
Nissan was successful at entering the electric car market with the Nissan Leaf. Unfortunately, that does not make it immune to terrible depreciation rates. The reason its resale price is so low might be because of the tax credit of almost $7.5k, various discounts courtesy of the dealer, and the abundance of leased Leafs. Owners who bought it straight from the dealer will have to deal with much lower value later on.
Nissan Leaf
Nissan Rogue SV
The Nissan Rogue was not like the Honda and Toyota models with their square and practical shapes. This was introduced as the sporty alternative to those models. Unfortunately, the car began experiencing a 5 percent loss in value after it received a redesign. Like the Nissan Leaf, the Rogue SV has a significant car depreciation rate.
Nissan Rogue SV
Mini Cooper
Are you interested in buying a compact car? If so, you have probably dreamed of owning your very own Mini Cooper. We’re sorry to be the bearer of bad news, but this car model depreciates more than other vehicles in the same category. A brand new 2015 Mini Cooper will likely cost you $20k. By now, however, it has already undergone a 29.3 percent loss. Make sure to think about the residual value as this is the amount that will truly matter.
Mini Cooper
GMC Yukon
As the gas price hike has finally been declared over, the allure of gas-hungry SUVs has made its comeback as well. The GMC Yukon, unfortunately, has been redesigned and suffered for it. It is also possible that potential buyers are taking a closer look at the costs involved when they participate in the cost-to-own program for 5 years. These brand-new SUVs have a price tag of $47k, but it will cost them $70k in the first five years. Moreover, their value drops by almost 33 percent after 12 months.
GMC Yukon
Chevrolet Express
There is a good chance that you don’t own or need a Chevy Express. The 2015 model is a cargo van, after all. However, if you are a business owner looking for a means of transportation, it is important to know several things about this vehicle before you shell out some money. First of all, owning a copy will cost you almost twice the amount you paid for it. Its rate of depreciation after a year is also above average at 37 percent. Well, it is basically the same as the original model and the buying audience is not exactly expansive.
Chevrolet Express
Chevrolet Impala
As we all know, it is hard to find a more popular car model than the Chevy Impala. How come the sedan loses value so quickly, then? Well, one significant factor is that it is a fleet vehicle, which means that it is common to use these cars for rentals or company use. There is an oversupply of these cars, in addition to the fact that they have no impressive features or irresistible looks. They also have to contend with the decreasing demand for middle-size sedans such as this one. These are the reasons why the value of the model has gone down like dead weight. From a value of $27k the previous year, the Chevy Impala has already lost 33.5%.
Chevrolet Impala
Volkswagen Beetle
Up next, we have yet another iconic car – the Volkswagen Beetle. Can you believe that it has a depreciation rate of 37% after the first year? There is a good chance that you have heard of the so-called “Dieselgate”. This was the time Volkswagen was reported for adding software that let them cheat the emission tests to show good results. As of September 18, 2015, the diesel units of this Volkswagen model have double the rate of depreciation of their gasoline counterpart. This will probably be terrible news for you if you already bought one, though it is possible to get a cheap one on the used car market.
Volkswagen Beetle
Lincoln MKS
The Lincoln MKS is about to become obsolete. It was made with the intention of appealing to luxury car enthusiasts who only have a budget of $50k or less. Unfortunately, it never made its way to the top-selling list, which is why it has experienced a depreciation rate of 30.4 percent after a year. You can compare it to the Hyundai Genesis in the sense that a brand-new unit might not be worth it, though it will be a bargain when bought used.
Lincoln MKS
Kia Optima
When you buy a Kia Optima, you should know that there is an equal amount of pros and cons. The vehicle comes with a spacious cabin, a great design, a dependable engine, and numerous upgradable features. Unfortunately, the fuel efficiency rating is not up to far, which is why it has a rate of depreciation of 35 percent in just one year. Owners of brand-new units will find many other models that will give them the best value for their money.
Kia Optima
Kia Cadenza
Up next, the Kia Cadenza has earned a spot on our list. If you have taken a liking to this model, you will get better value for your money when you check the listings for used cars. Its rate of depreciation is at 38 percent, so it is hard to understand why anyone would prefer a brand-new one. Kia has several entries on the list, mostly because its pseudo-luxury sedan line has yet to appeal to many buyers.
Kia Cadenza
Jaguar XK
The Jaguar XK has made it to the list and, like the Lincoln MKS, it is well on its way to obsolescence. This is primarily because Jaguar has recently come out with the newer and improved model called the F-type. These days, a Jaguar XKS you bought for $84.5k last year will already have its price reduced by 29.2 percent. It is, therefore, easy to see how it made it to this list of vehicles that are better bought secondhand.
Jaguar XK
Ford Mustang
The Ford Mustang has made a name for itself as the original pony car. Its reputation preceded it, and it definitely lived up to everyone’s expectations. The 6th generation did not fail to deliver a wonderful performance courtesy of its powerful engine and irresistible looks. A newer model has since come out, which is the reason why most people have stopped talking about the last model. It might not be the latest release, but it still comes with a great 5.0-L V8 engine and a gorgeous exterior. This is definitely a great deal since it is now for sale at $10k, while its original price was around $35k.
Ford Mustang
Hyundai Sonata
Are you looking for a mid-sized sedan that you can buy for your family? Well, look no further than the Hyundai Sonata. It has become one of the most famous family cars for its conventional looks, decent power, good performance, and roomy interior. You will generally find the average price of one at around $23k to $30k. That’s not a bad price, but wait until you hear that the 2011 Sonata goes down to as much as $8k when bought secondhand!
Hyundai Sonata
Lexus ES 350
There are few car companies out there that can rival the reputation of Lexus. People who own Lexus cars are usually big fans of the premium features, elegant design, and fantastic speed and handling offered by the manufacturer. Sadly, the Lexus ES 350 did not appeal to many people. After all, it looks fairly conventional for the premium price. It experiences a value drop of $9.1k after just a year.
Lexus ES 350
Dodge Charger
Cars.com has revealed the costs of owning a 2015 Dodge Charger. Apparently, owning it will cost you a little more than $41k in just the first 5 years. Aside from this, you might also want to consider that the value of the $26k car loses $8,000, around 45 percent, of its value in the first twelve years. This is nothing unusual for cars that are not attractive or interesting. People typically buy more attractive and popular models instead.
Dodge Charger
Chevrolet Camaro
It is true that the Chevy Camaro is dashing and sporty, though keep in mind that it loses 39 percent of its original value after the first year. This is actually among the highest rates of depreciation on the list! On average, a 2015 Chevy Camaro will set you back by $40k in the first five years. It is worth $23.7k in the beginning, though it loses $8k after a year. This is like the SS, Mustang, or Corvette, at least in the sense that the model is American-made with plenty of followers. Therefore, it is unsurprising to hear that the Camaro experiences a value drop like the aforementioned models.
Chevrolet Camaro
Mitsubishi Lancer
Are you surprised to find the Mitsubishi Lancer on the list? Even though it is advertised as an affordable car, you should know that it has a significant depreciation rate at 35 percent. Aside from that, you have to consider the overall cost of ownership. You might want to compare it to the Mini Cooper since they are similar in several ways. It is true that the Lancer will cost less from the dealer, but this amount will be offset by the fact that it costs more in the long run! Make sure not to forget about these things when you are making a decision.
Mitsubishi Lancer
Cadillac CTS
Ah, the Cadillac CTS is definitely one of our favorite cars. In our humble opinion, the luxury sedan has certainly been well-constructed and well-designed. This is a great road warrior, no doubt about it. Sadly, has a 36.9 depreciation rate, which is certainly higher than others. If you bought a 2015 model with a $45k price tag, it is now worth only half of that amount these days.
Cadillac CTS
Chrysler 300 C
The Chrysler 300 C is a veteran luxury car that first made its debut in 2005. It helped jumpstart the revival of American-made classic sedans that are luxurious, big, and muscular. A lot of people were drawn by the Hemi V8 and the option to pick between a V8 or V6 engine. That said, the Chrysler 300 C is certainly the way to go if you are on the lookout for a stylish and mean-looking luxury sedan. With an original retail price of $40k, this stylish sedan is definitely not cheap. However, we daresay that it is a bargain if you get an older, secondhand unit. The price can go as low as $20,000 for a car that is only several years old!
Chrysler 300 C
Buick Regal
The Regal deserves some credit as it successfully brought Buick its status as a great manufacturer of luxury compact sedans. The vehicle is like the Americanized Opel Insignia decorated with the Buick badge. Many people have been drawn to its several turbocharged engines, drivetrain options, and a large array of add-on features. It is quite easy to see how it became the top choice for reasonably-priced luxury sedans in no time. Originally available at the retail price of $30k, you will find a secondhand unit at around $10k! There will likely be more great deals soon since a new one is in the making.
Buick Regal
Fiat 500 L
First introduced in 2014, many people consider the Fiat 500 L to be a disappointment. This is primarily because the manufacturers made plenty of promises and only delivered on several of these. This is not to say that it is a bad car. After all, it was equipped with a roomy interior, fine trunk, user-friendly features, and noteworthy visibility. Unfortunately, most people were not impressed by its subpar power and performance. It is up to you decide if the $20k base price is worth it. Personally, we would recommend a used unit instead, as you will find a secondhand one for less than $14,000!
Fiat 500 L
Jaguar XF
Like most manufacturers of luxury vehicles, Jaguar cars have suffered rather high rates of depreciation. The XF is a mid-sized sedan that will be a lot cheaper if you buy a secondhand unit instead. It was first released in 2009 with a price tag of $50k. However, it ended up costing many customers around $60k for the add-on features. Even without those features, the base model is a solid performer with its 300 hp V6 engine (a 420 hp V8 engine is also available). In the used car market, a 2009 or 2010 model can go for $15k or less! This would be an excellent deal because the XF will still come with a leather interior, gorgeous design, powerful engine, and wonderful safety features.
Jaguar XF
Lincoln MKZ
It is no secret that the executive sedan line is a highly competitive segment. Ford tried to join the race with the Lincoln MKZ. Unfortunately, it was simply not up to par with the BMW 3-Series and Mercedes C-Class. Nonetheless, it is a great car that is equipped with a 263 hp engine, full-leather interior, and modern features. You can buy a brand-new unit at the base price of $35,000. However, the used car market offers 5-year-old units for less than $15,000!
Lincoln MKZ
Nissan Maxima
The Nissan Maxima is a great luxury car that can give buyers their money’s worth. It is big, comfortable, powerful, and well-equipped. The manufacturer released a new generation in 2016, which included wonderful styling, top-of-the-line technology, and a V6 300 hp engine. If you get a new one, it will cost you $32k. However, you should find secondhand Maxima units for a little more than $20k. It is now two-thirds of its base price and you might even be lucky enough to get one that is still covered by warranty!
Nissan Maxima
Kia K900
The Kia K900 was created with the intention of competing with the Mercedes S-Class, BMW 7-Series, and other similar full-sized luxury sedans. It comes with everything you can expect from a premium vehicle: creature comforts, extravagant features, and a wonderful engine. It is certainly not cheap at a base price of $60k, but it is actually more affordable than other cars in the same segment. Nonetheless, the price continues to go down with time. As a matter of fact, you can find a secondhand one at only around $30k nowadays. What a steal for a premium model!
Kia K900
VW Passat
While the VW Passat is not a luxury car, it has seen one of the worst depreciation rates in recent history. Nowadays, you can get it for only a fraction of the base price. It is a pretty good car, all things considered. After all, it comes with lots of style, quality, and advanced features. Unfortunately, it received a fair bit of damage when the Volkswagen diesel controversy came out. This is the reason why a 2014 VW Passat that used to be worth $25k only has a resale value of $12k. However, you might want to think twice before getting a diesel unit.
VW Passat
Audi A8
Up next, we have the popular premium sedan: the Audi A8. It has won over buyers with its innate elegance, powerful engines, and Quattro AWD. Despite the size and luxury, it was made using aluminum, making it light and agile. The current model has been available for quite some time already. Like other luxury vehicles, it has been hit with a high depreciation. The base model cost around $80k, but you can now get a 2012 A8 unit for only $30k.
Audi A8
Cadillac XTS
In 2013, Cadillac first released the XTS, a mid-sized car that was elegant and luxurious. Unfortunately, it did not make a large impact since it was considered the middle child. Many people still preferred the ATS, CTS, and CT6 over it. Despite this, it is still a wonderful car equipped with a front-wheel drive and a 304 hp engine. It has a base price of $45k, though you might luck out and get an old one in good condition for half of that!
Cadillac XTS
Acura ZDX
Acura had a vision for a sporty-looking crossover and the ZDX was the result. It was a good car with a powerful engine, all-wheel drive, and low roofline. Unfortunately, it did not stay long on the market since it did not attract many customers. For one thing, its appearance was not appealing. If you can look past that, it is a steal at $13k on the used car market. Can you believe it used to retail for $35k?
Acura ZDX
Maybach 57/62
If you are the type of person who only wants the best, you should definitely get a Maybach. They are the ultimate symbol of extravagance in the world of automobiles. The Maybach 57 used to cost $400k and the Maybach 62 S $500k. That is an eye-popping amount of money, but it is a good thing that you can now get these prestigious vehicles for as low as $50k!
Maybach 57/62
Cadillac SRX
The Cadillac SRX is a great luxury car that comes with the performance, interiors, and quality of your dreams. It used to go for about $40k from the dealer, which is not a bad price when you consider the 265 hp engine and luxury features. However, you might be surprised to learn that it is possible to get a secondhand but well-maintained unit for $15k.
Cadillac SRX
Chrysler Aspen
Are you concerned about the number of seats, features, price, and towing capacity? If this happens to be the case, we recommend that you buy a Chrysler Aspen. It is appealing and comfortable, but it has since grown obsolete with the rise of the stylish SUV. Formerly priced $40k, you can get a great deal for this capable vehicle at around $12k to $13k.
Chrysler Aspen
Mercedes CL-Class
The CL series is among the most prestigious two-door models of the luxury car manufacturer. True, it is not as sporty as the SL, but it is still equipped with premium features and a powerful engine. It might have gone for $100k before, but you can find a secondhand unit for just $25k!
Mercedes CL-Class
Mercedes R-Class
Mercedes Benz had no luxury crossovers before creating the R-Class. Unfortunately, the market for this type of vehicle wasn’t large enough, so it was discontinued 2 years after its inauguration. Despite all of this, consumers have remarked on how luxurious and comfortable the car is. The depreciation rate is quite low though, once starting at $50k, a used model is now worth a little over $19k.
Mercedes R Class
Dodge Magnum
The Dodge Magnum is very similar to the Dodge Charger, the only main difference being the design. This station wagon has great mechanics including powerful engines, rear-wheel drive and all-around great build quality. Unfortunately, the vehicle didn’t do too well since it was released during the SUV craze. The Dodge Magnum’s depreciation rate is so high, you can now score one for around $7k.
Dodge Magnum
BMW 5 Series
The BMW 5 Series is much more efficient than the manufacturer’s other models, mainly due to the 2.0L, 4-cylinder, 248 hp engine. But unfortunately when it comes to this vehicle, more efficiency doesn’t equate to more luxury. After 3 years, the 5 Series will lose 52.6% of its value, meaning you can snag one of these beauties for only $30k.
BMW 5 Series
Mercedes-Benz E-Class
The E-Class is one of Mercedes Benz’ most high-end models. This affects the car’s valuation, and at nearly 49.9% depreciation, it seems to be in a negative way. Although you will get an extremely sleek car with great performance, it’s value just won’t hold up at all.
Mercedes Benz E Class
BMW 3 Series
The 3 Series is one of BMW’s best-selling models, if only this positively affected the depreciation rate! This model will lose 49.8% of its value within three years…talk about a major drop. All things aside, the 3 Series continues to do well thanks to its affordable price compared to the brand’s skyrocketing prices.
BMW 3 Series
Ford Taurus
The Taurus is one of Ford’s cheapest models, but don’t think it’s lacking on performance, because it sure isn’t! The only downfall to this car is its depreciation rate, with the highest value loss over all Fords. With a 49.7% depreciation over 3 years, you’d think buyers would be deterred, but we’ve seen otherwise. The Taurus’ great build and reliability are the reasons it’s doing quite well in the sales department.
Ford Taurus
Chrysler 200
Chryslers are considered luxury vehicles, though they won’t be as decked out as BMW and Mercedes Benz vehicles. Although they are cheaper for a luxury brand, the depreciation rate for the Chrysler 200 isn’t too great at 48.4% after just 3 years.
Chrysler 200
Volkswagen Jetta
Both the Volkswagen Jetta and the Volkswagen Passat lose their value very quickly. The Jetta loses 48.1% of its value within the first three years. But, in any case, sales seem to be doing well thanks to the reliability of this fabulous car. We recommend that if you do chose to buy the Jetta, never let it go!
Volkswagen Jetta
Audi A3
What’s something Audi, Mercedes Benz and BMW all have in common? They are all luxury motors, German engineered and garner awful valuations. While this may be the case, the A3 happens to be Audi’s most popular model thanks to the lower price, and family-friendly capabilities. Just keep in mind that this model loses 47.9% within the first 3 years.
Audi A3
Jaguar XJL
Jaguar has been a household name in the luxury car industry for years now thanks to their sleek design and top of the line engineering. We wish their valuation loss wasn’t so high, but with a 66.4% loss within 3 years, it isn’t the best.
Jaguar XJL
BMW 6 Series
The BMW 6 Series is not only available as a four-door sedan, but also a convertible and a coupe. Sadly, the versatility of the 6 Series isn’t enough as the car suffers from a 68.3% loss after just 3 years.
BMW 6 Series
Ford Fusion Energi
The Ford Fusion Energi is a blend of eco-friendly and luxury into a midsize sedan. Although the car is super good for the environment, you guessed it, the depreciation rate is quite high. Ford execs answer this by saying, “Government incentives play a role in the steep depreciation of electric and plug-in hybrid vehicles as their resale value is based on their lower effective post-incentive sticker price”. With all of that said, a few years after being bought, the value will drop a whopping 69.4%.
Ford Fusion Energi
Mercedes Benz S-Class
This car is quite expensive, but it only makes sense why this is true. The S-Class is not only impeccably designed, but it also has top of the line tech features and sturdy engines, making it Mercedes Benz’ signature sedan. While it isn’t the quickest depreciating, it loses its value quite quickly at 69.9%
Mercedes Benz S Class
BMW 7 Series
The BMW 7 Series takes the prize for the quickest depreciation, losing 71.1% of its original value after 5 years. This number means that it depreciates faster than both the BMW 5 Series and its Mercedes Benz counterparts.
BMW 7 Series
Chevrolet Volt
The Chevy Volt is another environmentally friendly vehicle, except this car is electric with a gas-powered engine…too cool. Not only that, but the Volt is also able to charge its battery while driving. But, with Tesla on the market and other electric car manufacturers, the Volt has suffered, depreciating quite fast with a 71.2% drop.
Chevrolet Volt
Ford Focus
Ford Motors is a household name, their dependability and affordability the reason for this. Although this may be true, their valuations are not too good, especially in regards to the Focus. This compact family hatchback is worth 45% of its value 3 years after purchase.
Ford Focus
Infiniti Q50
Infiniti takes the engineering of Nissan and transforms them into luxury vehicles worth talking about. Although Infiniti and Nissan are owned by the same people, the two manufacturers are quite different, especially when it comes to valuations. Within the first 3 years, the Q50 loses 46.9% of its value.
Infiniti Q50
Cadillac ATS
The Cadillac ATS has multiple engine options, a remote start via smartphone, as well as 4G WiFi in the car! Aside from these cool features, within the first 3 years, the ATS is valued at 50.4% lower than when bought at MSRP.
Cadillac ATS
Cadillac SRX
The SRX was Cadillac’s first vehicle of the crossover type, a luxurious one to say the least. Consumers are extremely happy with the car, the only downfall being the valuation 3 years later, which is 47.2% less than value.
Cadillac SRX
Alfa Romeo Giulietta 2.0
This Italian car manufacturer sure produces good-looking cars. But, Alfa Romeo’s hatchback, ‘Giuletta 2.0’, doesn’t hold its value too well, just like many of their other cars. Within 3 years, the value drops a whopping 73.9%.
Alfa Romeo Giulietta 2.0
Fiat Panda 0.9 Twinair
This 4×4 sports utility vehicle is Fiat’s Panda 0.9 Twinair. Although it’s stylish and great for weekend getaways, within 3 years, the Panda’s value drops by 73.3%. That’s a big number, and something to think about for potential buyers.
Fiat Panda 0.9 Twinair
Fiat Punto 1.4
The Fiat Punto 1.4 is a compact car, only available in certain countries. Don’t worry if it’s in your region, it’s absence may be a good thing! Within 3 years, it’s valuation drops by 73.8%…sounds like a bad investment!
Fiat Punto 1.4
Buick Enclave
If you like Buick for their affordable prices, you make want to rethink that since they’re transitioning into a luxury car brand. Within 3 years, this Enclave crossover drops 46.8%, quite a high number for the previously well performing brand.
Buick Enclave
Toyota Camry
The Toyota Camry is the best-selling sedan in the United States, and for good reason! The reliable car continues to attract buyers, and with new models offering a sportier design each year, consumers are interested in purchasing these models. This negatively effects the depreciation rate since so few people want to buy this model used.
Toyota Camry
Mercedes-Benz C250
The C250 is one of Mercedes Benz’ most popular models thanks to its reasonable price tag. Unfortunately, the C250 has a 34.4% depreciation rate, losing over $15k in the first year alone! By allowing buyers to upgrade older models instead of buying brand new, they are trying to avoid such a high depreciation rate.
Mercedes Benz C250