Owning a car is not only a convenience but also a significant investment. However, some cars depreciate much faster than others. It’s crucial to consider the resale value of a vehicle before making a purchase decision, especially if you plan to sell it in the future.
In this article, we will discuss 30 car models experiencing rapid depreciation and explore the reasons behind their decreasing value.
1. The Smart Fortwo Isn’t Budget Friendly
Are you considering joining the wave of electric vehicles? If so, you may have already explored the Smart Fortwo as a potential option. This stylish car has a starting price of $25,390 and boasts alluring autonomous capabilities as standard features. However, if this is your dream vehicle, it’s important to be aware of one significant drawback.
Within just one year, the Smart Fortwo can experience a depreciation of approximately 36 percent in value. Therefore, if you do decide to invest in this compact car, it’s advisable to hold onto it for a few years. This way, when the time comes to move on, the financial impact won’t be as severe.
2. The Hyundai Genesis Is Not The Future
Hyundai has ventured into the realm of luxury vehicles with its offering, the Genesis. This sleek and captivating car may not carry the same prestige as a Mercedes Benz or BMW, but it certainly holds its own in terms of performance and aesthetics, capable of going head-to-head with these giants on the quarter-mile.
Despite its impressive features, the Genesis is burdened by a significant issue: its value plummets dramatically after just a year of ownership. The vehicle’s steep price of $52,000 translates to a staggering $16,000 loss in investment due to a depreciation rate of 38 percent. Consequently, if you’re seeking the best bang for your buck, opting for a pre-owned model might be the wiser choice.
3. The Ford Mustang Sixth Generation Makes The GT A Steal
The Ford Mustang is an iconic vehicle that has stood the test of time. If you’re in the market for a Mustang, the Mustang GT offers exceptional value. Originally priced at $35,000, it’s currently available for as little as $10,000 on the secondary market.
Why has the price dropped so significantly? The answer lies in the emergence of the sixth-generation Mustang BULLITT, which has taken the spotlight. As a result, the Mustang GT has become an affordable option for those looking for a thrilling sports car experience. It’s an excellent opportunity to purchase your first sports car at a reasonable price.
4. The Nissan Rogue Isn’t A Rebel
The Rogue SV from Nissan falls short of its intended revolutionary status and may not be worth its price tag of $26,000 at a minimum. While the vehicle does come equipped with convenient features such as a remote engine start, automatic temperature control, and a motion-activated liftgate, it fails to offer strong resale value.
If you’re willing to spend an additional $1,000, you can opt for the SV hybrid version, which includes an increase in underfloor cargo space and 60/40 second-row split seating. However, even these added features cannot prevent the rapid depreciation that occurs once the Rogue leaves the dealership.
5. The Mini Cooper’s Losses Aren’t Small
Are you an owner of a 2015 Mini Cooper? If so, be prepared to hear some shocking news – your car has already lost 29 percent of its value in just a few short years. Despite its sleek and stylish appearance, it may come as a surprise that its depreciation rate is higher compared to other models in the same category. However, if you’re looking to buy a used one, this could be great news for you as you can snag a good deal in the secondary market.
The upside is that the 2015 Mini Cooper had a starting price of $20,000 when it was brand new. This means that even though it has depreciated significantly, it was a bargain deal, to begin with.
6. The Volkswagen Beetle Is Small But Fierce
The Volkswagen Beetle is undoubtedly a timeless classic, and it remains one of the most iconic vehicles manufactured by the automaker. Despite its popularity, however, the Beetle suffers from an unfortunate downside: it has one of the poorest resale values among its peers, perhaps due to its overabundance in the market.
Shockingly, on average, the Beetle’s value depreciates by 37 percent within the first year alone! But don’t despair just yet. If you happen to own a Beetle, consider holding onto it as no new models are being produced after 2019. This could potentially drive up the demand for older models, leading to an increase in their resale value down the road.
7. The Chevrolet Express Is Great For Businesses
It’s highly likely that unless you own a business, purchasing a cargo van wouldn’t interest you. The Chevrolet Express is a capacious option available in the market; however, its resale value is a major letdown.
Business owners who purchase this vehicle can anticipate a significant decline of around 40% in its initial value after just one year. This marks one of the most substantial depreciations among cargo vans. Nonetheless, if you’re utilizing the van daily, it might still be a worthwhile investment. These robust vehicles are constructed to endure heavy usage and tough conditions.
8. The Lincoln MKS Is A Great Value On The Secondary Market
The Lincoln MKS ceased production in 2016, and there were some compelling reasons behind this decision. Despite being marketed as an affordable luxury car, the MKS failed to achieve the desired sales figures. As a result, owners of this vehicle experienced significant depreciation, with the car losing around 30% of its value in the first year alone.
There is good news for those who were fond of the MKS. Lincoln is set to introduce a new model based on the Continental that will replace the MKS. If you were considering purchasing the MKS but didn’t get around to it, now may be the perfect time to do so. As it is only available on the secondary market, it is likely to be priced competitively.
9. The Lexus ES Has A Boring Problem
Lexus is known for its sleek and powerful car models that have captivated the hearts of fans and prospective buyers alike. However, the ES 350 model fails to meet the expectations of those who desire the quintessential Lexus experience. While it carries the Lexus branding, this model shares more similarities with non-luxury sedans.
This disparity between the ES 350 and other Lexus models is reflected in its resale value. On average, the ES 350 loses approximately $9,000 in value after just one year of ownership. Though the latest iterations of the model have been redesigned from the ground up, it remains to be seen if this will have any significant impact on the secondary market.
10. The Kia Optima Isn’t Saved By Its Upgrades
If you’re considering purchasing a car that is affordable yet spacious, then the Kia Optima is an excellent choice for you. It is an ideal car that provides all the essential features you would expect in a vehicle without costing a fortune. The Optima comes with a starting price of $22,000, making it a budget-friendly option.
There are a couple of downsides that prospective buyers should keep in mind. Firstly, Optima’s depreciation rate is relatively high, with a 35 percent drop in value in the first year. Secondly, while the car’s fuel efficiency is decent at 27 miles per gallon in city driving, it falls short compared to other similar vehicles.
11. The Kia Cadenza Should Be Bought Used
The sole drawback of the Kia Cadenza lies in its initial year depreciation rate. Typically, a purchase of $33,000 for this vehicle can lose around 38% of its value within a year. Nevertheless, this feature makes it a smart choice for anyone seeking to purchase a used car.
For those contemplating purchasing a brand-new Kia Cadenza, it is important to note the aforementioned warning. It is also worth mentioning that this won’t be the final Kia you’ll encounter on this list. While you have already learned about Optima, you haven’t yet had a chance to explore its luxurious offering. How will it compare?
12. The Jaguar XK Is Best Left On The Showroom Floor
The most recent iteration of this opulent vehicle commenced its pricing at $82,000. This initial cost alone serves as a warning to potential purchasers that its resale value may not remain high. After a mere twelve months of possession, the 2015 Jaguar XK’s value plummeted by 30 percent, and it’s no surprise that Jaguar decided to discontinue its production.
Jaguar’s replacement for the XK model draws inspiration from the F-type, and it will probably be priced similarly, with comparable depreciation rates. It’s difficult to fathom how a car with an initial price tag of $82,000 could retain its value for an extended period.
13. The 2011 Hyundai Sonata Is The Perfect Car For Today
The Hyundai Sonata is a remarkable vehicle renowned for its reliability and impressive performance. It’s a family car that has gained a lot of popularity on the roads lately. It comes in various price ranges, from $20,000 to $30,000, and is widely known for its outstanding features.
Although older models of this car are losing their market value quickly due to the recent surge in popularity, the 2011 Sonata remains a fantastic choice. It’s just as great as the latest models but at a much more affordable price. Why splurge on a brand-new Sonata for $30,000 when you can get your hands on an older model for a mere $8,000? It’s a steal!
14. The Nissan Leaf Floats On The Wind
The Nissan Leaf boasts itself as the most sought-after electric vehicle in the United States, with an impressive range of 150 miles and a corresponding horsepower to match. However, the Leaf’s selling point comes to a halt at this feature. To transform the Leaf into a smash hit, a tax credit of $7,500 is offered upon purchase or lease.
With a base price of $29,000, the Leaf’s cost plummets to $21,500 with the tax credit. Thus, even before you drive the car off the lot, the value of the Leaf has already depreciated. When you factor in the annual depreciation rate, it becomes evident that Nissan is selling one of the least valuable vehicles in the secondary market.
15. The Chevy Impala Is Nice To Look At, But That’s About It
The Chevrolet Impala, while not a terrible car, falls short in the fuel efficiency department. Despite its powerful 305 horsepower engine, the vehicle can only manage 18 miles per gallon when driving in the city. Opting for the standard 2.5L engine will provide a slight improvement, bumping the MPG up to 22.
However, Impala’s lack of fuel efficiency isn’t the sole reason why it experiences a significant 33.5% depreciation in its first year. The primary factor is that the Impala is primarily used as a fleet vehicle. It’s often seen as a rental or company car, rather than a personal vehicle for daily commutes.
16. The Dodge Charger Isn’t Worth The Investment
Initially, the Dodge Charger may appear to be an irresistible deal. A sports car priced below $30,000, designed to captivate the onlookers. However, several factors could go wrong. Firstly, the cost of maintaining this car could exceed your expectations. For instance, if you purchase a brand new 2015 Dodge Charger for $26,000, including the maintenance cost and upkeep for five years, the total expenses could go up to $41,000.
Additionally, the value of the car could also depreciate significantly, plummeting by 45% in five years. It is imperative to conduct thorough research and understand the implications of owning a Dodge Charger before making a purchase. Avoid turning your dream of owning this car into a dreadful experience.
17. The Chevrolet Camaro Depreciates Like A Luxury Car
The Chevrolet Camaro stands as a top-rated sports car in the United States, capturing the hearts of many car enthusiasts. However, its value plummets at an alarming rate, making it one of the highest depreciating vehicles in the market. Within a year of purchase, its value drops by a staggering 39%, which is quite alarming.
It is disheartening to know that a vehicle that costs $25,000 for its bare-bones edition could experience such a significant reduction in value. The overall cost of ownership of the Chevrolet Camaro is estimated to be around $40,000 over the first five years, which is equivalent to the cost of a luxurious car.
18. Used Is The Way To Buy A Mitsubishi Lancer
Presently, the only means of obtaining a Mitsubishi Lancer is through the used car market. Mitsubishi ceased production of this vehicle worldwide, except in Taiwan and China, in 2017. The reason for this cessation was to reallocate resources toward the production of SUVs and crossovers. However, we speculate that Lancer’s 35 percent rate of depreciation also played a role in this decision.
If one were to compare the Lancer’s long-term value to that of a Mini Cooper, the latter would prove to be the wiser investment. Despite being listed at a lower price than the Mini Cooper, the Lancer’s maintenance fees would eventually cost $5,000 more than the Mini Cooper. This, coupled with its substantial rate of depreciation, makes the Lancer a less sound investment option than the Mini Cooper.
19. The Cadillac CTS Is Showing Signs Of Aging
The Cadillac CTS is a prime example of a luxury vehicle that offers great value for your money. Its initial cost starts at $45,000, but with added upgrades, the price can skyrocket up to $60,000. Given its price range, one would assume that it retains its value well compared to other luxury cars. However, reports indicate that the 2015 CTS experienced a depreciation of 37 percent within the first year of purchase.
Despite this discouraging news about depreciation, the Cadillac CTS remains a dependable and well-crafted machine. It is highly probable that once you become an owner of a CTS, you will cherish and retain it for several years, without the need to sell or trade it in.
20. The GMC Yukon Is A Gas Fiend
If you prioritize spacious cargo capacity in a vehicle, the GMC Yukon is an ideal choice. However, if fuel efficiency and overall worth are significant factors for your car shopping, you might want to explore other options. With a starting price of $49,000, the Yukon’s city mileage average is only 15 miles per gallon.
Moreover, within the first year of driving, the Yukon’s depreciation rate amounts to 33 percent, resulting in a loss of approximately $16,000. Nonetheless, the upside is that you won’t need to rent a U-Haul for your moving needs ever again.
21. The Chrysler 300 C Is All About The Looks
Since its debut in 2005, the Chrysler 300 C has been one of the most popular sedans produced by the automaker. Its sleek and elegant design is truly captivating, and its performance on the road is nothing short of impressive. However, as is the case with most luxury cars, it’s always wise to consider the prices on the used car market before making a purchase.
If you’re in the market for a brand new 300 C, be prepared to shell out at least $40,000. On the other hand, opting for a used car can save you a considerable amount of money, with prices ranging from as low as $20,000 for a well-maintained vehicle.
22. The Buick Regal Is Its Own Worst Enemy
The value of older Buick Regal models has been significantly impacted by the release of the redesigned 2019 version. Buick’s goal of appealing to a younger audience with the updated appearance has come at a cost for those looking to sell their pre-redesign Regals.
Before the redesign, brand-new Regals could be purchased for less than $30,000. However, with the new model priced at $39,000, the older models have lost a considerable amount of value. Some pre-redesign Regals can now be found on the used car market for as little as $10,000.
23. The Fiat 500 L Failed To Attract Families
Despite promising to compete with family vans in the market, the Fiat 500 L fell short of expectations, leaving much to be desired. Not only was the small car underpowered, but it also struggled to perform well. With a starting price of $20,000, the Fiat 500 L was not spared from depreciation, which heavily impacted its overall value. After three years, the vehicle is now only worth approximately $13,000.
To its credit, Fiat has adopted a new strategy in marketing the 2019 model to a younger audience seeking new adventures. This shows the automaker’s effort to pivot its target market and appeal to a demographic that may find the Fiat 500 L more appealing.
24. The Jaguar XF Isn’t Worth The Sticker Price
The Jaguar XF is a lavish car that caters to all your luxury needs. It boasts exquisite leather seats, a robust engine, an impeccable design, and cutting-edge safety features. However, its high-end features come at a steep price, with a base model starting at $49,000, and the Sportbrake version going for $64,000.
If you’re looking to indulge in luxury without burning a hole in your pocket, there’s a way out – purchasing an older model. You can lay your hands on a 2009 model for as low as $15,000, a considerable saving from the newer versions. Though you might have to compromise on Bluetooth connectivity, it remains one of the best deals you can find in the market.
25. The Lincoln MKZ Never Found An Audience
Lincoln had an ambitious plan for its MKZ, to compete head-to-head with the likes of the Mercedes Benz C-Class and BMW 3-Series. Regrettably, the MKZ was outperformed by its rivals, and as a result, failed to gain a strong foothold in the market, which hurt its resale value. Nowadays, a well-maintained five-year-old MKZ can be acquired for approximately $15,000.
If we compare this price with the $35,000 price tag of the 2019 model, it’s clear that opting for the latter is a better choice. However, it’s important to note that by selecting Lincoln, either new or used, you’ll have to compromise on power and performance.
26. The Nissan Maxima Is A Used Steal
If you have your sights set on a Nissan Maxima, it might not be in your best interest to purchase a brand-new one due to its high depreciation rate. Instead, consider buying a slightly used model that is only a few years old. For instance, you can find a 2016 Maxima with relatively low mileage for around $20,000.
By contrast, a brand-new 2019 Maxima may cost you around $34,000, meaning it could lose up to $14,000 in value over just three years. In light of this, buying a used Maxima that is still in excellent condition seems like a much more financially savvy option.
27. The Kia K900 Loses Half Its Value In Two Years
In 2015, Kia took a bold step into the realm of luxury cars just like Hyundai by launching its K900. Packed with top-notch features, this pricey sedan had a starting price of $60,000, positioning it to compete head-on with established players such as BMW and Mercedes Benz.
However, venturing into the luxury market has come at a high cost for Kia. Their flagship luxury sedan, the K900, suffers a substantial loss of fifty percent in just two years. Therefore, if you had waited until 2017 to purchase a brand new 2015 model at full price, it would have only set you back by $30,000.
28. The Passat Was Hurt By Volkswagon’s Cheating Scandal
Renowned for its exceptional quality and style, the Volkswagen Passat has long been considered one of the most dependable mid-sized family sedans available in the market. Despite its excellent features, the Passat is surprisingly affordable when purchased from the secondary market.
One benefit of the scandal is that you can now obtain a well-maintained 2014 Passat for as low as $12,000, which is significantly lower than the original cost of $25,000. If you decide to buy a brand new Passat model, it would still cost you $25,000 without any additional features.
29. The Audi A8 Never Stood A Chance
Are you in the market for a luxurious ride that boasts top-of-the-line specs? The Audi A8 is a high-end vehicle that fits the bill. With a price tag of $83,000 for a brand-new model, it’s not exactly affordable for everyone. However, if you’re willing and able to invest, the A8 offers a driving experience that justifies its cost.
For those who are budget-conscious, it’s worth noting that older models have significantly depreciated, making them more accessible. For example, a standard 2012 model can be purchased for approximately $30,000 on today’s market.
30. The Cadillac XTS Couldn’t Live Up To The Hype
Back in 2013, Cadillac unveiled its mid-sized sedan, the XTS, with a steep price of $45,000. However, the initial reception of the car from market reviews was less than positive. The XTS was widely criticized for its poor driving mechanics and was deemed inferior to other Cadillac models available at the time.
As a result of this unfavorable response, the XTS struggled to attract buyers, and sales suffered. Nowadays, you can easily find older models of the XTS being sold in the used car market at half the original price. Despite this, a new XTS will still cost you a whopping $45,000.