25 Cars That Are Plummeting In Value
Car depreciation is a source of intense dismay when it comes to purchasing a new or even used vehicle. It’s well-known that all cars lose their value with time. However, little is known that vehicles lose their value fast. The average new car loses approximately 10 percent of its value as soon as it’s driven off the dealer’s lot.
At the end of the first year, the car will lose up to 10% of average – and often much more. Depreciation doesn’t necessarily slow much after the first year. Even new cars continue to depreciate for another four years, averaging a value loss of 15-25 percent each year. By the time it is five years old, the average car has lost 60 percent of its retail value. If you are looking to buy a new vehicle soon, you should know the market. Here is a list of 25 cars that are losing their value while you are reading this. Scroll down to see why these cars are losing their value.
25. Hyundai Genesis
The Hyundai Genesis should last over 200,000 miles with proper care, but it doesn’t mean that it won’t depreciate quickly. Actually, Hyundai Genesis is at the top of the list of vehicles that depreciate most often and fast.
Its price tag is easily compared to Lexus or Mercedes models, but it will lose 38 percent of its purchase value within the first 12 months. This is a massive drawback if you are thinking about using the brand new Hyundai Genesis. Car buyers should think about this while purchasing.
24. Smart ForTwo
The Smart ForTwo may seem like a practical city-car, but in reality, it’s far from convenient. Plus, this car loses its value in the first year of ownership.
The interior is claustrophobic and cramped, while the two-speed transmission is unpleasant to most drivers. The Smart ForTwo is worth 36 percent less than its owner paid for it (approximately $14k), after only one year.
23. Chevrolet Impala
Chevy’s Impala is one of the most popular cars globally, and especially in the States. There is one huge downside – it depreciates fast. There are a few reasons for this.
Thousands of Chevy’s Impala face the destiny of being company cars or rentals. Simply said, they are oversupplied. So, there is nothing unique, rare, or even attractive about this car. Last year’s model (which started at $27k) is worth 33.5 percent less today.
22. GMC Yukon
SUVs have returned, as soon as the rise in gas prices dropped. Overall, this car isn’t the best one when it comes to SUVs, but it has its perks. The cabin is well-dressed in right materials, and seats are comfortable.
However, the newly redesigned GMC Yukon suffered in its redesign, new car buyers are doing the 5-year cost-to-own research as seeing that a brand new Yukon ($47k) will cost them upwards of $70k just to own for the first five years. Overall, these SUVs are depreciating 33 percent in one year.
21. Lincoln MKS
Don’t be surprised if Lincoln MKS disappears soon. It has been a slow-selling model that appealed to those car buyers seeking luxury under $50k. This car was never a standout top-seller.
Since Lincoln MKS was never a standout top-seller, it’s now worth 30.4 percent less than what its owner paid for it last year. So, better opt for a used car, because of its buyer’s best-case scenario.
20. Mini Cooper
There are cars that you must notice on the road, and the fabulous Mini Cooper is one of them. This compact vehicle is attractive and always seems in trend. The Mini Cooper ahs a strong base of numerous followers, but this car depreciates more than any other model in its class.
Last year the typical cost of a brand new Mini Cooper was $20k. For any owners with a 2015 Mini sitting in their garage, it’s now worth 29.3 percent less. Think twice if this car is the perfect choice for you.
19. Jaguar XK
The Jaguar XK stands for class. This car is so elegant that even non-car lovers would love a ride in this vehicle. However, this car, just like Lincoln MKS above, is now an old-fashioned model.
The Jaguar XK got replaced with the newer, flashier F-type model. Last year’s Jaguar XKs were driven off the dealership lot for around $84.5k. Ever since they lost approximately 30 percent of that value. So, if you want to own a Jaguar, purchase the used one.
18. Nissan Rogue SV
Nissan Rogue SV was initially introduced as a sporty alternative to more square and practical Toyota and Honda models. Overall, Nissan Rogue SV appealed to loyal Nissan owners.
However, once a redesign was conducted, the value of this vehicle slipped more than 5 percent. Just like the Nissan Leaf, Nissan Rogue SV comes with an above-average depreciation rate.
17. Ford Mustang
Ford Mustang is one of the most beloved cars in the States. People love the car’s shape, performance, and unique look. The original pony car, now in its 6th generation, was always a performance bargain.
The current Mustang generation has a V8 engine and exceptional performance. The current generation is trendy at the moment that everyone forgot about the previous model, which was a tremendous modern muscle car that featured cool retro design and a fabulous 5.0-liter V8. The base price was around $35,000, but now you can find an excellent example of just over $10,000.
16. Hyundai Sonata
Hyundai Sonata offers excellent design, decent performance, and power, next to the spacious interior. Over the years, Hyundai Sonata became popular due to the fact it’s a robust and very reliable family transport.
The base price here is around $23,000, and it can go all the way up to $30,000. However, you can find a good 2011 model for as little $8,000, which is a significant price drop.
15. Nissan Leaf
When it comes to electric vehicles, the Nissan Lef is Nissan’s great success. Still, this car suffers one of the worst drops in any vehicle’s value on this list.
The abundance of leased Leafs hurts its resale value, as does the nearly $7.5k in tax credits, and more in dealer incentives or discounts. All in all, these marks move from the total cost filter down once the cat is resold.
14. Dodge Charger
To own a Dodge Charger, you should invest over $41k. The original total cost of this vehicle was $26k, and within the first year, its value will depreciate more than $8k (upwards of 45 percent), and there is a good reason for it.
Dodge Charger models are fantastic, together with add-on features. Car experts claim that depreciation occurs due to the more popular, upgradable, and attractive competitors on the market.
13. Chevrolet Camaro
This may sound unusual, considering how much Chevrolet Camaro is popular, but this sports car loses 39% of its value in the first twelve months. The average 5-year total cost to own 2015 is about $40k. It’s $23.7k off the lot and loses a little more than $8k in the first year of ownership.
Chevrolet Camaro is an all-American made sports car, like the Mustang. Some believe Camaro depreciates like a luxury car. Did you know that Chevrolet introduced the Camaro on June 28th, 1966? Only three months later, the first Chevrolet Camaro was delivered to the public.
12. Kia Cadenza
The Kia Cadenza is considered a great vehicle with very few weaknesses. This car is loaded with safety features, the cabin is wrapped in premium materials, and there’s plenty of passenger room. Something is missing because Kia Cadenza loses a lot of its value in the first year.
The Kia Cadenza is excellent to buy lightly used. However, Kia’s pseudo-luxury large sedan has yet to win over buyers. It’s also not the only Kia on this list.
11. Volkswagen Beetle
Volkswagen Beetle is considered to be one of the freshest car models ever made. Car lovers love, Beetle’s classic design, ease of maintenance, and that car comes with a specific tradition.
Volkswagen’s diesel models have lost their (MSRP and resale) value at a much swifter rate than their gasoline alternatives. Reports came to light that the company had included a software cheat in the vehicles to beat emissions tests. Beetle’s performance is what makes it appealing. Many owners reported that they were able to drive the VW Beetle for as much as 200,000 miles. Be prepared for high-cost repairs.
10. Kia Optima
The Kia Optima is a vehicle that has an equal number of pros and cons. It has a beautiful and sharp design, many features, and a reliable engine, next to the roomy cabin.
The Kia Optima also has a disappointing fuel efficiency rating and a 35 percent depreciation rate from last year to this. Owners of this brand often for value-retaining Ford and Honda models.
9. Chevrolet Express
Chevrolet Express is a cargo van, and as such, it’s not for everyday usage unless you are into the transport business. This vehicle is more than practical for business owners and anyone who require this type of vehicle.
If you are thinking about this vehicle, you should know the cost first. Plus, to own this vehicle can be double the cost to purchase, and the depreciation in the first year of ownership is well above average at 37 percent. So, unless you really need this vehicle, you should think about other options.
8. Mitsubishi Lancer
The Mitsubishi Lancer markets itself as an affordable car; however, it loses a considerable percentage of its worth in the first year. The 5-year cost to own shows how it stands up to other vehicles in the long run.
For example, a $17k Mitsubishi Lancer can cost up to $4k less than MINI Cooper. When you make a side-by-side comparison, the Lancer costs $5k more than the Cooper does. This is something to consider.
7. Cadillac CTS
Cadillac’s CTS seems like a powerful machine. On top of that, this vehicle is well-designed and offers a certain level of solid-engineered luxury.
Cadillac’s CTS also faces a significant depreciation rate of other luxury vehicles, and is higher than most, coming in at 36.9 percent. Bear in mind that a 2015 CTS brand new cost around $45k, and now its worth is half of that amount.
6. Chrysler 300 C
When it comes to luxury sedan class, nothing beats Chrysler 300C. This luxurious car was first introduced in 2005, and it was marked as the revival of the classic American sedan.
Chrysler 300 C is big, muscular-looking, luxurious, and powerful. The average price of this car is $40,000, but you can find a couple of years old and slightly used examples below $20,000, which means that the 300C depreciated significantly in just a few years.
5. Buick Regal
The Buick Regal reintroduced Buick as a premium manufacturer in a compact sedan class. This famous model offers excellent extras, drivetrain options, and a wide range of powerful turbocharged engines.
With the original MSRP price of just under $30,000, you will be amazed that you can find couple-year-old examples for only over $10,000, which is pretty cheap. The newer model will be available from next year so that it will affect the price.
4. Fiat 500 L
Fiat’s 500 L comes with European charm and European performance. Initially, this car was announced in 2014, when a lot was promised, and only a small percent was delivered.
Fiat’s 500 L has enough space, it’s easy to drive, and has excellent visibility. With the base price of just over $20,000, three-year-old 500 L will cost you less than $14,000 today. This is a massive deprecation level for a three-year-old vehicle, so take that into account when purchasing Fiat 500 L.
3. Jaguar XF
Jaguar is widely known as a luxury manufacturer, but creating luxury cars doesn’t mean that depreciation level can’t occur. This is why the mid-sized luxury sedan in the form of the XF is very cheap on the second-hand market.
Jaguar XF was first released in 2009, with a base price of $50,000, but most models were sold for around $60,000. Today, you can find 2009/2010 models in more than the excellent condition for less than $15,000.
2. Lincoln MKZ
Lincoln MKZ was Ford’s answer to the BMW 3-Series and Mercedes C-Class in the highly competitive executive sedan segment. Regardless of all the effort, this car was never recognized as a real competitor.
Lincoln MKZ was built as a luxury model with a powerful engine, but in reality, it wasn’t fast enough. Today, you can find a good Lincoln MKZ (five-year-old) for less than $15,000.
1. Nissan Maxima
Nissan Maxima was always good value for your money. This car is powerful, big, and comfortable. Plus, Nissan Maxima is really nicely equipped. In 2016, a new generation was introduced with better technology, and modern styling, next to a new 300 hp V6 engine.
The base price for the new model was just over $32,000, and today, a year and a half after the introduction, you can buy second-hand examples for only over $20,000, which means that this model depreciated around $10,000 in less than two years.