These Cars Are Losing Their Value Faster Than You Would Think
Buying a car is one of the most important choices you can make in your life. Not only do you need to figure out what your budget is, but you also need to consider what you're car might be worth in a few years if you decide to sell it. If you think this is where your life with your vehicle is heading, we have some good news.
We've done the research to let you know if that Honda you've been eyeing will be worth more or less in one year then the Toyota that's also in your price range. Which car are you going to avoid buying?
The Dodge Charger Is A Bust When It Should Be A Boom
Upon first glance, the Dodge Charger seems like a real winner of an auto-investment. The base model costs less than $30,000, while the specs under the hood make you think you spent a whole lot more.
The cost of upkeep, however, is what keeps this car hurting owners' wallets. With maintenance and initial value included, the cost of owning a Dodge Charger for the first five years comes out to around $41,000. Add in a 45 percent depreciation and you'll only make back a fraction of the cost selling it used!
The Buick Regal Fell Victim To A Redesign
In 2019, Buick introduced a brand new look to the Regal. The goal was to attract a younger crowd of consumers to the automaker. The result was the massive depreciation of older Regal models.
Per-2019 Buick Regals were originally sold new for under $30,000 and can be found for the very affordable price of $10,000 in good condition today. The new Regal, which is undeniably gorgeous to look at, costs around $39,000. Which one would you rather buy?
The Jaguar XF Gets Better With Age
Can you guess what happens to the Jaguar XF after you buy one brand new? With full upgrades, the XF can cost as much as $64,000 and loses a considerable amount of that value in the first year.
While we don't know the actual number, consider this. Instead of buying a brand new XF, you can opt to buy a used 2009 model for $15,000. You just have to be willing to live without a blue tooth connection. Can you do that?
The Audi A8 Are Not Cheap
Looking to buy a brand new Audi A8? The bad news is that it will cost you $83,000. The good news is that the car depreciates so rapidly you can buy a used one for a MUCH more reasonable price.
For those with the money, the features in the A8 more than justify the sticker price. For the rest of us, finding one used for $30,000 is much easier to swallow and wallet-friendly. And of course, it still comes with all the amazing features!
The Hyundai Genesis' Future Is Not Bright
Hyundai entered the luxury market with the release of the Genesis. The car looks slick and comes with enough power to go toe-to-toe with Mercedes Benz and BMW. It has the price tag to match the power, too!
With the high price tag, however, comes a heavy first-year depreciation. With a brand new cost of around $52,000, the Hyundai Genesis will lose nearly 40 percent of its value in the first year of ownership, which amounts to around a $16,000 loss on the initial investment.
The BMW5 Series Isn't Honest
The BMW5 Series is another luxury car that will cost you an arm and a leg brand new. You know what that means, it's a perfect candidate to buy on the used market. With a depreciation of 18 percent after one year, the price will be more than reasonable with a little patience.
Another reason to buy the BMW5 Series used is their reputation for quality. At the price you're paying, you still get a car that will be on the road for five or more years!
The Ford Mustang GT Lacked Horses
No one here is claiming that the Ford Mustang isn't a muscle car classic. What we are suggesting is that that introducing the sixth-generation model may have been a misstep by the American motor giant. Priced around $35,000 brand new, older Mustang GTs can be found for less than $10,000 on today's used market.
The Mustang BULLITT is so popular that it crushed the value of its predecessor, making it the perfect car sports fan with a modest budget. Just head to your local used dealer before they run out!
The Kia Optima Isn't Saved By Its Upgrades
The Kia Optima is spacious and simplistically stylish. In many ways, it is absolutely perfectly priced at $22,000. Like other cars on this list, though, don't be fooled by the price tag. The Optima may seem like a great deal, but it has poor fuel efficiency and even worse depreciation.
In 12 months, the Optima loses 35 percent of its initial value. This makes the car another one that is best bought on the used market, where the investment won't be sunk by the initial cost.
The Mercedes Benz E-Class Plummets Quickly
Another super high-end Mercedes Benz that loses value quickly is the E-Class. Almost as fast you can drive it home, the E-Class loses half its value. It doesn't matter how beautifully designed the car is when you try to re-sell it.
We hope anyone who bought this car didn't think it was going to be a good investment. Automobiles rarely ever increase in value, and when they do it's after they have ended their production runs and reached classic status, something the E-Class might never do.
The Mini Cooper Comes With Big Losses
If a Mini Cooper is the car of your dreams, we recommend buying one from the secondary market. You might be able to customize the car however you want brand new, but the value will fall by nearly 30 percent in the first few years.
If there is any silver lining to this Mini-nightmare it's that the car isn't expensive to begin with. A 2015 bare bones Mini Cooper cost consumers $20,000 new. Losing 30 percent of that cost still gives the car a $13,000 to $15,000 resale value.
The Chevrolet Camaro's Cost Falls Like Luxury Car
The Chevy Camaro is another iconic sports car you might want to avoid buying brand new. Unlike other sports cars, the Camaro's depreciation ranges line up more closely with expensive luxury cars.
After having a Camaro for 12 months, it will lose 40 percent of its value. For a car that costs, as a base model, $25,000, that's a big hit to take. With Chevy officially ending the production run of the Camaro in 2019, maybe this number will start to rise to something more palatable.
The GMC Yukon Loves The Taste Of Gasoline
The GMV Yukon has amazing cargo space. This makes it a huge selling point for families looking who love to travel. However, the sheer size and weight of the car make it a gas guzzle or monstrous proportions. On average, the Yukon gets 15 miles per gallon in the city, all for the starting price of $49,000.
On top of that, the car will depreciate by 33 percent in your first year of ownership. If you want to lose $16,000 in one year while paying an arm and a leg for gas, then this is the car for you!
The Chrysler 300 C Is Very Pretty
One of Chrysler's most popular cars is the 300 C. These beautiful cars prove that a luxurious ride can come with incredible power. Just be careful about how you buy yours. Brand new the price will be $40,000 or new, while used it will run you as low as $20,000.
One of the reasons the 300 line became so popular was thanks to Breaking Bad. In the show, Walter White bought a Chrysler 300 for his 51st birthday party. While he didn't buy a C model, the inclusion of the car on the show turned it into a highly sought after automobile.
The Lincoln MKS Should Be Bought Used
The Lincoln MKS ended its production run in 2016 after low sales made it expendable. The lack of oversaturation, however, did not help decrease the car's initial 30 percent depreciation.
The truth is that any luxury car, even ones advertised as affordable, will depreciate by a large amount right away. When spend over $40,000 on a vehicle, you can't expect it will resell for anything more than $25,000. For that reason, anyone looking to buy an MKS should look at the used market.
The Fiat 500 L Was Too Big
We're not quite sure what Fiat was thinking when they released the oversized Fiat 500 L. The company was hoping to take a chunk out of the family van market but failed to deliver comparable power to consumers.
Starting at $20,000, the 500 L quickly depreciates to a value of $13,000. Unwilling to give up on the little big van, Fiat has changed their marketing scheme and is now pushing the product towards young adventure seekers living on budgets.
The Lincoln MKZ Never Caught On
If the Lincoln MKZ could have found an audience it wouldn't be on this list. The car was packed with features as Lincoln planned to compete with Mercedes and BMW. When it was released, the MKZ was outclassed by the competition and sales fell the wayside.
Today, a used MKZ can be bought for $15,000, which is a far cry from the original sticker price of $35,000. So, are you buying your MKZ used or new? The choice seems clear to us!
The Cadillac SRX Is A Pricey Bargain
Cadillac thought they were releasing the perfect family SUV when the SRX was released. It was powerful yet functional. Something you could take kids to school and then go off-roading while you wait to pick them up.
When it was released, the SRX cost around $40,000. While that seems like a good price for a luxurious family vehicle, anyone looking to upgrade after a few years found out a tough truth; the SRX did not age well.
The BMW Three Series Oversaturated The Market
The BMW3 Series is one of the most popular Beemers on the market, and like a few other cars on this list, that popularity has led to rapid depreciation rates for new and old models. Remember, oversaturation isn't always a good thing, especially on the used car market.
If you want to buy a 3 Series of your own, look for a three-year-old model on a secondary lot or website. In good condition, they will still have lost half of their value, making it a much more budget-friendly purchase.
The Mercedes CL-Class Didn't Get Good Grades
Mercedes Benz is generally the kind of automaker you would expect to make a list like this, but let's be honest, every company makes mistakes. For Mercedes, that mistake was the CL-Class of cars, even though no one saw their failure coming.
The CL was given the highest-end luxury features including plenty of legroom and powerful engine. The problem was the $100,000 price tag. Consumers just weren't willing to pay it, and we don't blame them.
The Cadillac CTS Is Getting Old
As far as luxury cars go, the Cadillac CTS is one of the more affordable options on the market. With a starting price of $45,000, you would hope it would also hold its value better than most.
Sadly, the truth isn't so kind. In its first year of ownership, the CTS depreciates by 37 percent. This is a car that if you buy, you should plan to own for a few years. Luckily, the CTS is reliable and should last until you're satisfied with the sticker price.
If You Buy A Lancer, Buy It Used
The truth is, used is the only way you can buy a Mitsubishi Lancer these days. Mitsubishi ended its production run on the car in 2017, shifting their focus stateside to SUVs and crossovers. The Lancer is still be made overseas.
If you bought a Lancer in 2017, the bad news is it has depreciated by 35 percent. Even worse is that it will have also cost you $5,000 in maintenance fees. Overall, this is a car that we should all be grateful can only be found on the secondary market.
The Chevy Impala Is Shiny
After owning a Chevy Impala for one year, its value will decrease by 33.5 percent on average. This unfortunate depreciation can be attributed to the Impala's use as a fleet vehicle and company car.
If that number isn't enough to make you reconsider the iconic Chevy, its specs are nothing spectacular either. The Impala maxes out at 305 horsepower and average 18 miles per gallon of city driving. With an engine upgrade, that number can move up to 22, which is only slightly better. At least it's shiny!
The Volkswagon Beetle Can't Fly
Before you get mad at us for including the Volkswagon Beetle on this list, hear us out. While the car is admittedly a timeless classic, it has also oversaturated the market, crushing its overall resale value.
After owning your Beetle for one year, it will have lost nearly 40 percent of its initial value! Don't give up hope, though. With the Beetle no longer in production, perhaps demand for this little vehicle could begin to rise, saving your overall return on investment.
The Kia Cadenza Is A Bucket
Our second Kia on this list in a row is the Cadenza, which is one of the automakers' more expensive consumer options. With a starting price of $33,000, the Cadenza loses 38 percent of its value in the first year.
And like the Optima, the Cadenza isn't loaded with flashy features to make your forget your losses. The car averages 27 miles per gallon the freeway and 20 in the city. Other similar cars average up to 40 miles per gallon on the freeway!
The Jaguar XK Left Us For A Reason
The most recent model of the Jaguar XK was not cheap to buy. Brand new it cost around $82,000 and lost 30 percent of that value in 12 months. Of course, when a car is that expensive, a major depreciation should be expected.
Perhaps because of the price tag, Jaguar decided enough was enough and ended production of the XK. To replace the XK in their lineup, Jaguar introduced a new F-Type, which will probably have a similar price tag and initial value loss.
The Nissan Rogue's Rebellious Depreciation
Filled with features for an affordable $26,000 price tag, the Nissan Rogue SV seems like a can't miss opportunity when you're looking at it on the lot. After all, how many other vehicles com standard with temperature control, a motion-activated liftgate, and remote engine start. The only thing the Rogue SV doesn't come with is good resale value.
As soon as you drive the Rogue SV off the lot, its rapid depreciation will begin. If you shell out an extra $1,000 you can upgrade your Rogue to a hybrid, but that will also increase the depreciation of the car in its first year.
The Chevrolet Express Drops Fast
There are very few reasons you would be interested in owning a cargo van. Chances are if you are in the market for one you own your own business. For the price, you can't do much better than the spacious Chevrolet Express.
Let's just hope you plan to use your cargo van for several years. Because of the use being put into these vehicles right away, they tend to depreciate by 40 percent in their first year. If you use the Express every day, it's probably worth the cost, just beware of the possible loss!
The Lexus ES Doesn't Stand Out In A Crowd
Lexus missed the mark when they released the ES 350. The car didn't seem to fit in with the Lexus brand and looked more like a commuter sedan than a luxury ride. As a result of poor sales, the value of the car began to plummet.
That must have been hard to handle for new ES 350 owners. They saw the car lose up to $9,000 in depreciation after one year. Because of the car's failure to live up to expectations, Lexus rebuilt it from the ground up, but only time will tell if that will make a difference.
The Nissan Maxima Is Steal On The Secondary Market
Buyer beware! You should not buy a Nissan Maxima brand new. For a fraction of the cost, you could get a two to three-year-old model on the secondary market. At the end of the day, a cheaper car with a few extra miles on it sounds pretty worth it.
Don't believe us? A new 2019 Maxima will cost you around $34,000. In three years, it will only be worth $20,000. For a car that's basically still new that a deal that sounds pretty impossible to beat.
The Smart Fortwo Isn't Budget Friendly
Thinking about joining the electric revolution? One of the more affordable options out there is the Smart Fortwo. The tiny car starts at a wallet-friendly $25,390 and gets great gas mileage. Unfortunately, it won't bring you a high return on your investment.
After your first year of ownership, the Smart Fortwo will have decreased in value by 36 percent. We recommend owning it for several years, that way when you do sell it, you'll definitely have gotten your money's worth!
The 2011 Hyundai Sonata Was Always Meant For 2019
A brand new Hyundai Sonata can be bought from anywhere between $20,000 and $30,000. It has become one of the company's most popular cars and is perfect for families worldwide. Because of this sudden increase in popularity, older year models have seen their values plummet.
The 2011 Sonata model, for instance, can be found used for $8,000 in good condition. Now tell us this; why would you buy a brand new $30,000 car when you can save some money and buy a slightly older version?
The Kia K900 It Worth Twice As Much Brand New
The Kia K900 was the automakers' version of the Hyundai Genesis. A car from a commuter brand designed to poach the luxury market. Kia went all out on the K900 and even took advantage of their partnership with the NBA to market it.
Unfortunately for Kia, getting into the luxury business hasn't been very nice. After owning a K900 for two years it loses half of its value! That's steep even for a luxury car. Did we mention the K900 starts at $60,000?
The Nissan Leaf Doesn't Soar
The Nissan Leaf has been sold to consumers as the best commuter electric car on the market. With a range of 150 miles and the horsepower to match, the Leaf seems like a great deal until you get under the hood.
As part of its advertising the sell the Leaf, Nissan offered a $7,500 tax credit, instantly reducing the value of the car. Add that loss in with the year-ti-year depreciation of the car that comes with normal wear and tear, and the Leaf doesn't exactly float on a wind.
The Passat Was Scandalous
For years the Volkswagon Passat was known as one of the most reliable cars on the road. Along with the Jetta, it was one of the company's flagship vehicles. Then it all came crashing down, almost quite literally
The value of the Passat was crushed when news came out that Volkswagon was cheating to pass emissions tests. Now you can find a 2014 Passat for a very reasonable $12,000 used. Just don't believe the emissions specs when you read them.
The Cadillac XTS Was All Hype
Cadillac released the XTS in 2013 to plenty of hype and a price tag to justify it. Costing $45,000, the XTS didn't perform as intended as received middling reviews from auto critics and consumers alike.
Thanks to the harsh reviews the XTS failed to make an impact in the market and can be used for less than half the original price, in good condition, today. This makes it a great used car, just expect to put more money into maintaining it then you would probably like.
The Acura ZDX Was "Strange"
Acura was thinking outside of the box when they entered the crossover market in 2010 with the ZDX. The vehicle was given a low roofline and a powerful engine. Sales sagged on release, and production ceased after four years.
The truth is, the ZDX could have been a hit in another year. When it came out critics said it was "strange" and "ugly" but as tastes change, so do opinions of beauty. Maybe today the car would have been a success. Instead, you can buy one used for $13,000.
The Maybach 57/67 Was Always Going To Be A Bad Investment
No one should be surprised that the Maybach 57 and 62 make this list. What is surprising is that it took so long to get to these six-figure investments. A brand new Maybach 57, released in 2006, cost $400,000, while a year late the 62 cost $500,000.
With price tags so high, it's not surprising that depreciation hit these cars extra hard. A used Maybach today will set you back around $50,000, which is still a lot of money, but only if you don't consider the original cost of the extreme luxury vehicle.
The Chrysler Aspen Fits A Modern Budget
Looking for a luxury SUV without a luxury price tag? Then you shouldn't buy one brand new, but we have this amazing suggestion. Look for a used Chrysler Aspen from 2009. Originally costing $40,000, one in good condition can be found for $12,000 today.
Essentially, it's the perfect luxury SUV for the family on a budget. It will get you everywhere you need to go with seating for up to eight people. You could start your own charter bus service with that amount of space!
The Ford Taurus Is Notorious
When it comes to Ford vehicles, few are as instantly recognizable as the Taurus. Although the car has gone through several iterations over the years, it has always felt special in the eyes of Ford fans. It is also notorious for how quickly it depreciates in value.
After three years off the lot, Tauruses lose about half their value! What's really crazy is these are affordable cars to begin with, so the loss in value isn't due to a shoddy build. Honestly, we don't know why these cars depreciate so much, but the numbers don't lie.
The Chrysler 200 Lacks Features
When you buy a luxury car, you expect it to be stocked full of luxury components. Heated seats, temperature control, high-end leather, etc... Can you guess what the Chrysler 200 didn't have when the American automaker released it? The answer is enough luxury features.
A luxury car in name only, the 200 depreciates so quickly because of how disappointing it was to consumers. Now, if you want a "luxury" car in name only, wait three years and you can buy one used for half of its original price.
