Whether you buy a car brand new or used, depreciation is always an issue. Depreciation is what happens when the value of a car goes down, and actually, as soon as you drive off with your brand new car, it already loses roughly 10 percent of its initial value. What’s more, it will continue to lose 10% within its first year, sometimes even more. The depreciation of a brand new vehicle continues for the next couple of years, with an average of 15%-25% loss each year and by the fifth year of ownership, it has already lost 60% of its original value. Continue reading to find out which cars are tipped to depreciate the fastest.
Smart ForTwo
Even within the first year of buying a Smart ForTwo vehicle, its value drops quite dramatically. Perhaps this is because even if it gets advertised a lot as an environmental car, its advantages basically end there. Despite the gas consumption being impressively low, it has a pretty cramped and really small interior. It also comes with two speed transmission, which is very unpleasant to many drivers. So many car buyers still opt for a mid-sized car with a far higher safety rating, even though the Smart ForTwo is advocated safe due to its small size. Within only one year after purchasing the Smart ForTwo car, its value drops by around 36 percent or about $14k less.
Smart ForTwo
Hyundai Genesis
The next car on this list is the car which depreciates the most and the fastest – the Hyundai Genesis. It was geared to compete with other luxury vehicles, but it doesn’t really have the recognized luxury vehicle brand appeal. The Genesis is priced similarly to Mercedes or Lexus models, though the Genesis’ retail value goes down by 38 percent in its first year, which is a disadvantage if you buy it new, but an advantage if you buy it used. If you are seeking luxury, consider buying a Genesis that a year old as it is priced $16K less than the original price of $52k, brand new.
Hyundai Genesis
Nissan Leaf
The Nissan Leaf basically embodies the success Nissan has when it comes to electric cars. However, this car’s depreciation rate is one of the worst on this list. With plenty of units of this model being leased, in addition to the tax credit that’s almost $7.5k, and a number of incentives or discounts from the dealer. This all affected its resale price negatively, and All mark offs which are from the price filter drop once this vehicle is resold.
Nissan Leaf
Nissan Rogue SV
Instead of being more square and practical like other models from the Honda and Toyota range, the Nissan Rogue was released as a sporty alternative. Nonetheless, right after its redesign, the car’s value fell by 5 percent. Just as its name suggests, this car is a rogue on this list, seeing as it has a high depreciation rate, just like the Nissan Leaf.
Nissan Rogue SV
Mini Cooper
The Mini Cooper is a pretty appealing compact car, which has a group of loyal followers. All the same, this car depreciates the most among the models of this kind. Buying a Mini Cooper brand new would have cost you $20k one year ago but by now, a 2015 Mini Cooper’s value has gone down 29.3 percent. When you consider this kind of car, its residual value is important as the biggest contributor to cost-to-own a car is the drop in value.
Mini Cooper
GMC Yukon
In general, the hike in gas prices has stopped and the interest in SUVs which are gas-guzzling has been renewed. Despite this, the GMC Yukon still suffers because of having been redesigned. Either that or potential buyers of brand new cars have done their homework and researched the total cost of ownership (TCO) of a brand new Yukon, which costs $47k if bought brand new and will cost owners $70k to own for 5 years alone. Within just the first year, regardless of the cause, these SUVs’ value can drop to nearly 33 percent.
GMC Yukon
Chevrolet Express
Many of us will probably not be on the lookout for a cargo van 2015 Chevy Express, unless you have a business or you need this specific kind of vehicle. It’s important to know that the total cost of ownership is nearly double the amount you initially shelled out to buy it brand new one, plus it has a 37 percent rate of depreciation in the first year, well above average. This may be because the previous model looks pretty identical to the current model, with few available upgrades and a buying audience which is limited.
Chevrolet Express
Chevrolet Impala
How come the super popular and established Chevy Impala depreciates so quickly? One possible reason is the fact that this car is among the fleet vehicles of the brand, which means majority of these vehicles serve as a company car or a rental option. To sum up, the Impalas are oversupplied and what’s more, they don’t have features that are rare or unique and they don’t look particularly attractive. Because of the number of Impalas up for sale and the falling demand for mid-size sedans, the value of this popular Chevy model in the market drops rapidly and dramatically, with last year’s $27k Impala now having a value that is 33.5% lower.
Chevrolet Impala
Volkswagen Beetle
The Volkswagen Beetle has a 37 percent rate of depreciation within its first year and the MSRP value and resale price of the diesel engine Beetles have gone down at a rate that is much quicker than that of the gasoline models. This was caused by reports about Volkswagen putting a software cheat in their diesel models so that these vehicles would have good results in emission tests. On September 18th, 2015, the Beetle became one of the models which have completely different depreciation rates between the gasoline and diesel (twice as high) models. However, a Beetle bought the previous year could be the next year’s best buy.
Volkswagen Beetle
Lincoln MKS
The Lincoln MKS is faced with obsolescence. This vehicle which is not sold quite often appeals to buyers looking to purchase a luxury car priced under $50k. Since this car wasn’t ever a top-seller, its value drops by 30.4 percent within just a year. Like the Genesis, an individual who has purchased an MKS brand new may find this super annoying, but it’s a best-case scenario for buyers of used cars.
Lincoln MKS
Kia Optima
The Kia Optima has equal advantages and disadvantages. This vehicle has a reliable engine, several upgradable features, a sharp design, and a roomy cabin. However, its rating for fuel efficiency is unsatisfactory and it has a 35 percent rate of depreciation from one year ago. Owners of brand new Optimas may realize similar Honda and Ford models are more value-retaining and thereby, more enticing.
Kia Optima
Kia Cadenza
The Kia Cadenza is among the fastest depreciating vehicles on this list. Buying this vehicle used is certainly a good deal owing to its 38 percent rate of depreciation, and for this very reason, buying it brand new is difficult to vindicate. Actually, this isn’t the sole Kia car on this list as the company’s big pseudo-luxury sedan still hasn’t won over car buyers completely.
Kia Cadenza
Jaguar XK
The Jaguar XK is faced with obsolescence much like the Lincoln MKS. The XK has been replaced with an F-type model that is newer and fancier by Jaguar. A year ago, buying a Jaguar XKs from a dealer would cost you around $84.5k, but this car’s value has dropped by 29.2 percent within the past year. It is certainly appropriate that this Jaguar model is on this list of vehicles best bought used.
Jaguar XK
Ford Mustang
The Ford Mustang’s 6th generation has always been a performance bargain. Checking out the early prices of the Mustang and its value in the used car market, you will understand that the Mustang GT (with a V8 engine and great performance) is well worth your money when it comes to looks and power. The current model is pretty hot right now, so no one remembers the model (modern muscle car) before it, which came with cool old school design as well as a great 5.0-liter V8 engine. It was originally priced at around $35k, though you can have fun burning rubber and own this car for only over $10k.
Ford Mustang
Hyundai Sonata
Hyundai Sonata
Lexus ES 350
The reputation of Lexus as a car company is an esteemed one. Lexus car owners have the tendency to favor handling and speed that is excellent, design that is smooth and sleek, and luxury. Actually, the Lexus ES 350 is most likely the more ‘boring’ model the company has released. On the outside, it has average and unremarkable appearance, which is perhaps the reason for the $9.1k drop in its value within the first year of ownership.
Lexus ES 350
Dodge Charger
According to Cars.com, a 2015 Dodge Charger’s TCO (total cost of ownership) for five years is a bit more than $41k. The car’s original cost is $26k, and within the first year, the car’s value drops more than $8k (approximately 45 percent). Quite surprising seeing as most models are uninteresting and don’t come with noteworthy add-on features. The depreciation rate is probably because competitors are upgradable, attractive, and more popular.
Dodge Charger
Chevrolet Camaro
The sharp and sporty Chevy Camaro is said to have a 39 percent depreciate rate within its first year, definitely one of the highest on this entire list. The estimated total cost of ownership (TCO) for five years of a 2015 Camaro is about $40k. It’s $23,700 after being driven off the dealership and over $8k is lost during the first year of ownership. Similar to an SS, Mustang or Corvette, the Camaro is American-made and it’s a sports car that has worshippers just like many luxury car lines – a possible explanation for the drops in value it experiences similar to many luxury cars.
Chevrolet Camaro
Mitsubishi Lancer
On this list, the Mitsubishi Lancer having a 35 percent rate of depreciation is just average and despite this specific model being advertised as a car that is affordable, it faces pretty high depreciation in its first 12 months. The total cost of ownership (TCO) for a 5 year period shows how this car compares to other vehicles. A Lancer costs roughly $4k less than a base model of the Mini Cooper but if both cars’ estimated TCO is compared side-by-side, the Mitsubishi Lancer still costs $5,000 more than the Cooper does. If you still haven’t made up your mind yet whether to buy a Lancer used or brand new, this is something that you should consider.
Mitsubishi Lancer
Cadillac CTS
The Cadillac CTS is among the mainstays in the brand’s lineup. It is a luxury sedan which is well-designed and a reliable road warrior and it has solid engineering as well. However, it also has a 36.9 percent depreciation rate, which is certainly higher than the rates of most luxury cars. Thus, a 2015 CTS which costs around $45k when bought brand new is now worth about half that amount.
Cadillac CTS
Chrysler 300 C
The Chrysler 300 C is surely a veteran in terms of being a luxury sedan since it was introduced back in 2005, during the start of the revival of classic American sedans (powerful, big, muscular-looking and luxurious). The main selling point for a lot of buyers all over the world was the various powerful engines like the Hemi V8, V8, and V6. This stylish sedan has a $40k price tag but a Chrysler 300 C which is a few years old and slightly used will only set you back less than $20k. Therefore, this vehicle depreciated significantly within just a few years, so if you’re in the market for a mean-looking, large luxury sedan, the Chrysler 300 C is a great option.
Chrysler 300 C
Buick Regal
The Regal helped Buick regain its popularity for manufacturing premium compact sedans. Basically, this car is a European Opel Insignia which is American-trimmed and comes with a Buick badge. Offering drivetrain options, great choices for add-on features, and numerous powerful turbocharged engines, the Regal soon turned into one of the more prominent choices for luxury yet affordable sedans. Originally priced at just under $30k, a Regal that is a few years old is pretty cheap and will only cost you just over $10k, probably due to the new model set to be released next year.
Buick Regal
Fiat 500 L
In 2014, the Fiat 500 L promised a lot of things but failed to deliver most of them, which affected its price as a used car and its popularity. Even if its trunk is decent and it’s a rather spacious family car, it has a below average performance as well as small engine. Even if it offers great visibility and is pretty easy to drive, driving its rivals is still way more enjoyable since they have more power and better performance. The base price of a Fiat 500 L is just over $20k but right now, you can buy a 3-year-old 500 L for under $14k, which is pretty significant depreciation considering it is only a 3-year-old car.
Fiat 500 L
Jaguar XF
Similar to many other luxury vehicles, Jaguar cars also face high depreciation, which is why the mid-sized luxury sedan Jaguar XF is inexpensive when bought used. When it was launched in 2009, base price of the XF was $50k, but customers bought the vehicles with some add-ons, so most models cost roughly $60,000. The base model comes with a V6 300-hp engine, but a performance version which has a V8 420-hp engine is also available. Today, you can find 2009 and 2010 models for under $15k (good condition and full-service history) – a great deal seeing as the XF boasts a powerful engine, advanced safety features, a great design, and full leather interior.
Jaguar XF
Lincoln MKZ
In the ultra competitive executive sedans segment, the Lincoln MKZ was Ford’s response to the BMW 3-Series and Mercedes C-Class. Unfortunately, in spite of the fact that the MKZ is a true luxury model which has a pretty powerful engine and high-level standard equipment, it was never actually considered a true rival. Even though it comes with a 263 hp engine and boasts a leather interior, the MKZ was never really as fast and refined as the other models, thereby affecting the price. Despite having a $35k base price, you can find a 5-year old MKZ that has low mileage and is in perfect condition for under $15k.
Lincoln MKZ
Nissan Maxima
The Nissan Maxima is certainly worth what you pay for and may well be a luxury vehicle seeing as it’s big, nicely equipped, comfortable, and powerful. In 2016, Nissan released a new generation that came with new technology, great styling, and a V6-300 hp engine and buying it brand new cost just over $32k. However, second-hand units go for a little more than $20k right now, which means the depreciation was roughly $10k in just two years. For two-thirds the original price, you will basically get a brand new vehicle that is still under the warranty, so buying a Nissan Maxima is definitely worth considering.
Nissan Maxima
Kia K900
The K900 is Kia’s brave attempt to put their own full-sized luxury sedan on the market and it is the company’s answer to the Mercedes S-Class and the BMW 7-Series. Therefore, it comes with a powerful engine lineup, creature comforts, luxury features, a considerable price tag, and a high depreciate rate, just like all luxury cars. In the last quarter of 2014, the K900 was introduced and it has a 420-hp engine as standard, high luxury, and a standard price of around $60k, which was low compared to its competitors but certainly high for a Kia. Nowadays, you only have to shell out roughly $30k for a K900 that is 2 years old and well-cared for, pretty cheap for a large premium model.
Kia K900
VW Passat
A regular mid-sized sedan, the VW Passat isn’t a luxury vehicle but you can own this car for roughly half of the base price. Offering advanced features and technology, a good variety of engines, as well as the signature style and quality of VW, the Passat is quite a good car. All the same, because Volkswagen was mixed up in an emission cheating scandal in 2015, many Passats with diesel engines were recalled, which gave bad publicity to the entire Volkswagen diesel lineup and thereby causing a price drop with regard to these models. Initially priced at $25k, a 2014 VW Passat is now only $12-13k, and while we don’t recommend the infamous diesel Passat, the models with gasoline engines are also cheap.
VW Passat
Audi A8
The uber-luxury Audi A8 is a very well-known premium model which wins over buyers with its advanced Quattro AWD, powerful engines, luxury items, and elegance. In spite of the size and luxury of the A8, it has a body made from aluminum, which makes it relatively agile aside from being light. It has been a while now since the current model was first released in the market, depreciation is now noticeable, like with all luxury vehicles. Its base price was roughly $80k for a version with a 372 hp engine and a short wheelbase, but you can now get a 2012 A8 for around $30k and a W12 model for $40k or less.
Audi A8
Cadillac XTS
Introduced in 2013, the Cadillac XTS is a mid-sized car with an elegant design and a lot of luxury options, though it didn’t actually make an impact and is considered middle child in Cadillac’s line up. The CTS and ATS have excellent driving dynamics but the XTS doesn’t nor does it offer the luxury which the CT6 does. The XTS has a 304 hp engine and a front-wheel drive as standard and it is priced at around $45k, a large amount of money, for sure. However, you can get a well-kept XTS that has low mileage for half of the base price, making it a really good deal in terms of mid-sized luxury sedans.
Cadillac XTS
Acura ZDX
The ZDX was the ambitious attempt of Acura to launch an all-wheel drive crossover which looks sporty and comes with a powerful engine and a low roofline. However, it was on the market for just four short years (2010-2013) most likely because the car only looks great on paper but looks ugly and strange in reality. Such a pity that the market failed to notice the signature qualities of Acura in the ZDX, like a nice interior as well as a powerful engine. The base price of the ZDX when it was introduced was around $35k, but there are examples that are a few years old which are priced at $13k, which are definitely a steal.
Acura ZDX
Maybach 57/62
You might find it weird but this super luxury car, which embodies an extravagant sedan, has made it to this list for having a depreciation rate that is one of the worst throughout the years. Try to remember the year 2006, when the Maybach 57 was priced at nearly $400k and the 62 S model’s price could go up to $500,000. If you think about it, that is an awful lot of money, but because of depreciation, a Maybach costs around $50,000 right now and there are even lower priced examples with more miles. This means that the amount you shell out for a mid-size SUV that has nice options is similar to how much it will cost you to own one of the most prestigious cars in the world.
Maybach 57/62
Cadillac SRX
A stylish SUV that has a decent interior room, quality, and performance, the Cadillac SRX is certainly a good choice. With a base price of roughly $40k, the SRX is pretty much a desirable model with luxury features as well as a 265 hp engine. It is truly remarkable that you will only have to shell out about $15k to get yourself an SRX that is preserved and well-maintained. This is indeed a bargain considering it is a luxury SUV.
Cadillac SRX
Chrysler Aspen
If your budget is limited but you want an 8-seater vehicle with plenty of features as well as good towing capacity, the Chrysler Aspen is definitely a great choice. It is a multi-purpose rugged SUV that has decent styling and offers comfort, but has been practically forgotten as far as stylish SUV models are concerned. Back in 2009, it was priced at about $40k, but these days you can get an Aspen that is in decent shape and has all the key features for just $12-13k. It’s really cheap compared to the recent models.
Chrysler Aspen
Mercedes CL-Class
The Mercedes CL-Class is the most prestigious two-door model of the brand. The SL may be way sportier than the CL, but the latter is a real GT car with luxury features of best quality, enough space for four people, and powerful engines. However, that prestige level comes with quite a high price tag. When the CL was introduced to the market, its base price was over $100k. Right now, a CL 500 in really good condition fetches for only around $25k (about the same price as an economy sedan).
Mercedes CL-Class
Mercedes R-Class
The Mercedes R-Class was a way for the luxury brand to integrate into the crossover business. However, it turns out that their target audience wasn’t big enough and not enough people bought the R-Class. After just two years since the release of the car, it was discontinued. Its base price was $50,000, but now you can buy a used one for less than $19,000. Lots of customers have gone about how great the features of the model are as well as the great engines.
Mercedes R Class
Dodge Magnum
If you thought the Dodge Magnum looked familiar, then look again. It does resemble the Dodge Charger. The main difference between them is the Magnum has a sleeker design. It has RWD, great build quality and great engines. Due to the fact that it was released soon after SUVs became popular, this station wagon hasn’t done well. Nowadays you can find a fully loaded model for as little as $7k.
Dodge Magnum
BMW 5 Series
The new BMW 5 Series is quite pricey. However, you can find a good deal for one since their value drops by 18% after just the first year. Its 2.0 Liter, 4-cylinder, 248 hp engine is so much more efficient than the previous model, but it’s the same level of luxury. After owning it for 3 years, the 5 Series will lose as much as 52.6% of its initial value. Now you can find a used model for as little as $31k.
BMW 5 Series
Mercedes-Benz E-Class
Another high-end car that loses its value quickly is the Mercedes E-Class. Despite the fact that it has excellent performance and a stunning design, it doesn’t keep the model from losing 49.9% of its value after a few years. If you want one of these beauties, you’re better off getting a used one for half the MSRP.
Mercedes Benz E Class
BMW 3 Series
Thanks to its lower price tag, BMW’s best-selling cars are the 3 Series. While the price tag is lower, the car’s depreciation rate has only increased over the years. Nowadays, after only 3 years of ownership, the car loses 39.8% of its initial value.
BMW 3 Series
Ford Taurus
The Ford Taurus is one of the cheapest Ford models, but also one with a higher depreciation rate. This model, in particular, can lose 49.7% of its value after three years. The high number is rather surprising since its an affordable family sedan. In any case, the Taurus keeps getting positive reviews and selling well.
Ford Taurus
Chrysler 200
While Chrysler is known for being an ‘affordable luxury’ brand, its cars can get pretty expensive. One downside is that their cars don’t have as many features compared to other luxury brands on the market. Despite the fact that the Chrysler 200 is a popular car, its depreciation rate is 48.4% after three years.
Chrysler 200
Volkswagen Jetta
One of Volkswagen’s most popular cars, the Jetta has a great price tag and design. It may be similar to the Passat, but according to customer reviews, the Jetta is better. In any case, this family sedan loses 48.1% of its value in three years of ownership.
Volkswagen Jetta
Audi A3
Thanks to the luxurious features, German engineering that their cars possess, Audi, BMW, and Mercedes are all on the same level in car sales. This includes depreciation rates, of course. The Audi A3 is one of the cheaper models of the brand which makes it a best-seller as it appeals to families more. This luxury car loses 47.9% of its value in just three years.
Audi A3
Jaguar XJL
While Jaguar is one of the most famous luxury car manufacturers, their cars still have high depreciation rates. After three years of ownership, the Jaguar XJL loses 66.4% of its initial value which is a drastic drop.
Jaguar XJL
BMW 6 Series
This BMW is unique since it’s available as a coupe, a convertible, or as a four-door sedan. The 6 series loses about 68.3% of its value after just a few years. It’s a higher rate than the BMW 5 Series.
BMW 6 Series
Ford Fusion Energi
Ford created the Fusion Energi which is the first eco-friendly luxury sedan. While it’s electric, its depreciation rate is a staggering 69.4%. “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,” Ly said.
Ford Fusion Energi
Mercedes-Benz S-Class
The signature sedan in the Mercedes brand is the S-Class. It has advanced top-of-the-line features that make it expensive to buy as well as expensive to fix if the need arises. All this means that it has a rather high depreciation rate. After a few years, it loses 69.9% of its value.
Mercedes Benz S Class
BMW 7 Series
The BMW 5 and 7 Series both depreciate faster than the Mercedes models. One of the highest on this list, the 7 Series loses a whopping 71.1% of its value over 5 years. Try to keep that in mind when you head out to buy the newest model.
BMW 7 Series
Chevrolet Volt
This car made history as it has the first gasoline-powered engine that’s able to charge its battery while driving. However, there are many other similar cars on the market like the Chevrolet Volt which contributed to its high depreciation rate. It loses 71.2% of its value within just a few years.
Chevrolet Volt
Ford Focus
While Ford is known for making great dependable cars with even better prices, their cars tend not to hold onto their value well. All the same, they all have amazing reviews. In 2018, the Ford Focus became popular since it’s a compact family hatchback with a great design. However, after three years it’s estimated to lose 45% of its value.
Ford Focus
Infiniti Q50
Over the years, Infiniti has made a name for themselves by combining Nissan’s engines with a more sporty, cutting-edge style. However, in comparison to their other models, the Infiniti Q50 loses 46.9% of its initial value within the first 3 years.
Infiniti Q50
Cadillac ATS
While the Cadillac ATS has features that not a lot of other luxury cars do, it loses a high amount of its initial value in the first three years. It has 4G WiFi, two engine options, and a remote start via smartphone. Even with all the fancy features, the car loses 50.4% of its value.
Cadillac ATS
Alfa Romeo Giulietta 2.0
Most of Alfa Romeo’s cars don’t lose their value as quickly as this model. The Giulietta 2.0 is the only model of theirs that has a high enough depreciation rate to make it onto our list. While this Hatchback is a beauty, it loses 73.9% of its value in just three years.
Alfa Romeo Giulietta 2.0
Fiat Panda 0.9 Twinair
The Fiat Panda 0.9 Twinair is a great car to have on weekend trips. With its compact design and 4×4 drive, we wish it didn’t have such a high depreciation rate. After just the first few years of ownership. this car loses 73.3% of its value.
Fiat Panda 0.9 Twinair