Anyone who wants to purchase a car should be familiar with the concept of car depreciation. Basically, it’s how the car’s value decreases over time. Did you know that the value of your vehicle already reduces by 10 percent after you drive it off? Aside from this, it will lose at least 10 percent more when it has been in your possession for a year.
Not all cars are built the same way, however. Cars with few features and those coming from unappealing manufacturers might have their prices halved in only a few years. Retired cars are also victims of high depreciation rates. Don’t forget to take note of these things when you are looking at the used car market.
You should know that depreciation will continue after the first year. Apparently, most cars will experience a 15-25% annual loss for the next four years. If that is not alarming to you, let us do the math. By the fifth year of ownership, the value has experienced a loss of 60% already!
Are you planning on purchasing a car in the near future? Don’t forget to check the market for any developments. For your convenience, we have compiled 35 cars with declining retail value.
Smart ForTwo
Are you surprised to find the environmental car here? It has made its way to the list because it experiences a high depreciation rate that owners will feel once a brand-new unit turns one-year-old. Basically, its list of attractive features does not contain anything other than the fact that it is an environmental car that comes with low gas consumption. Despite these features, you will find that it is actually small and cramped inside the vehicle, the transmission is only two speed, and its safety rating is not very impressive when compared to an average mid-sized car. Once it turns one year old under your watch, you will find that its value has already dropped by a jaw-dropping $14,000 or 36 percent already.
Smart ForTwo
Hyundai Genesis
The Hyundai Genesis is yet another car that experiences a fast and high depreciation rate. This car was the result of the South Korean’s effort to compete with luxury vehicles. Unfortunately, it does not have the same brand appeal of such brands even though its price is close to a Mercedes or Lexus. Perhaps this is the reason why it experiences a 38% loss in retail value after just one year. As you might have guessed, you are at a disadvantage if you buy it brand-new. You could get a good deal on a one-year-old Genesis since $16,000 will already be shaved off the original $52k price by then.
Hyundai Genesis