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
Nissan Leaf
Another electric car has made it to the list! The Nissan Leaf was the successful creation of the Japanese car manufacturer, but its depreciation rate is pretty terrible. There are several factors that negatively impacted it such as numerous incentives coming from the dealer, a tax credit of nearly $7.5k, and the high number of leased units. These things have all worked together to bring down their resell value.
Nissan Leaf
Nissan Rogue SV
Most Toyota and Honda models are practical and square, but the Nissan Rogue SV is not like them. In fact, it was launched as the sporty alternative to these cars. Despite this, its value lost 5 percent after it went through a redesign. It is not unlike the Leaf in the sense that it undergoes a fairly high rate of depreciation.
Nissan Rogue SV
Mini Cooper
The Mini Cooper is definitely an attractive compact car, something that is evident from the loyal followers it has. The car, unfortunately, experiences a higher rate of depreciation than others in its class. If you bought a 2015 Mini Cooper for $20k last year, you will find that its value these days have gone down by 29.3 percent. When you want a car like this, focus on the residual value since this is its current price in the used car market.
Mini Cooper
GMC Yukon
The gas price hike is now a thing of the past, so it is easy to see why people are falling in love with gas-heavy SUVs yet again. The GMC Yukon has undergone a redesign, which has heavily impacted its resale value. There is also the possibility that people have realized how costly it was to own. After all, they can avail of a brand-new Yukon for $47k, though the costs will set them back by $70k in the first five years. This doesn’t sound ideal when the value of the SUV loses 33 percent after the first 12 months.
GMC Yukon
Chevrolet Express
The 2015 Chevrolet Express is actually a cargo van, so you probably do not need one. Most people who bought a unit happen to be business owners, who use it for delivery and the like. We have a few important things that you need to know before you cash out, however. Keep in mind that owning it will cost you about twice the original payment you made. It also has a high depreciation rate at 37 percent in 12 months. If you are wondering why, this is because the manufacturer did not add a lot of upgrades, so it is almost identical to the old model. Moreover, the buying audience is limited so there is no room for expansion.
Chevrolet Express
Chevrolet Impala
As all car enthusiasts (and even those who aren’t) know, the Chevy Impala is a highly popular car model. Unfortunately, there are many reasons why this model earned a spot here. For one thing, it is known as a fleet vehicle, which means they are bought for company use or as rentals. Aside from the oversupply of the cars, it does not boast of alluring exteriors and unique features. That’s not all, however. These days, there is a lower demand for sedans of this size, so the market value of the popular model has dropped by a significant amount. A brand-new Chevy Impala might have cost you $27k last year, but its value has suffered a loss of 33.5 percent.
Chevrolet Impala
Volkswagen Beetle
The Volkswagen Beetle is yet another classic car model that has seen a terrible depreciation rate in the past few years. In fact, a one-year-old copy will have lost 37% of its value already! However, those who bought the diesel models suffer more than those with the gasoline models. If you are wondering why, we would like to direct your attention to the diesel scandal Volkswagen was involved in. It was revealed that the manufacturer included a software program that made it perform well in emission tests. As of September 18, 2015, the diesel units suffer twice the rate of depreciation in comparison to the gasoline ones. It might be a good idea to buy a used Beetle now!
Volkswagen Beetle
Lincoln MKS
Can you believe that the Lincoln MKS is nearly obsolete? The model did not fare well in the market, even though it was made to cater to luxury car buyers with a budget below $50k. It never became a top-seller, and this is the reason why it loses 30.4 percent of the original value after a single year. Like the Hyundai Genesis, it will not give you the bang for your buck when bought brand-new, though it is a good deal when you buy a used unit.
Lincoln MKS
Kia Optima
The Kia Optima boasts of the same number of pros and cons. The car is equipped with a good engine, a roomy interior, a dashing design, and a number of upgradable features. Despite these, the fuel efficiency rating does not make the cut. It also has a depreciation rate of around 35 percent in only a year. Those who bought brand-new Optima owners might have seen better value if they bought similar models from Ford or Honda instead.
Kia Optima
Kia Cadenza
We have another quickly depreciating car in the Kia Cadenza. A used unit might just be one of the best deals you will find in the used car market at the moment. With its 38 percent depreciation rate, it might be better to get a one-year-old unit than a brand-new one. There are several Kia models on the list as many people are still skeptical about the pseudo-luxury cars they make.
Kia Cadenza
Jaguar XK
Alongside the Lincoln MKS, this is another car that might become obsolete sooner than later. The car has already been replaced by Jaguar with the new F-type model. A one-year-old Jaguar XKS might have originally cost $84.5k, but it has already lost 29.2 percent of its value by now! That is, without a doubt, a significant amount of money. This is the exact same reason why you will be better off getting a used unit in great condition instead of a new one.
Jaguar XK
Ford Mustang
No other pony car will ever replace the OG, the Ford Mustang. The 6th generation is one of our favorite cars on the list. It has never disappointed anyone with its solid performance and an incredible engine. Trust us when we say that you will get the bang for your buck when it comes to both power and looks. Now that it has been replaced by a newer model, many people overlook the last model. Nonetheless, it is still equipped with a 5-L V8 engine and fashionable exterior. It had an original price of about $35k, though a secondhand unit will only set you back by $10k.
Ford Mustang
Hyundai Sonata
The Hyundai Sonata comes with lots of room, fine performance, average design, and reasonable power for a mid-sized sedan. Thanks to these features, it has recently earned a reputation as a reliable and solid means of transportation for families. You will find brand-new units for anywhere from $23k to $30k. However, we highly recommend that you purchase a 2011 Sonata instead. Why? Well, these units can go as low as $8,000! That’s a steal if we ever saw one.
Hyundai Sonata
Lexus ES 350
Lexus is a well-established company that has lots of fans. It is easy to see why – most of their cars have a suave appearance, high-quality features, and amazing speed and handling. Unfortunately, the Lexus ES 350 did not live up to the expectations most people had for it. For one thing, it looks fairly conventional and even boring when compared to its brothers and sisters. This is likely why It loses $9.1k of its value in the first year of ownership.
Lexus ES 350
Dodge Charger
Apparently, owning the 2015 model of the Dodge Charger will set you back by $41k in the first five years of ownership. You might want to think about purchasing it as it has a retail price of $26k, though its value will lose over $8k or about 45 percent after just 12 months. This typically happens to cars that do not come with add-on or interesting features. People tend to go for more popular, attractive, and upgradable cars instead.
Dodge Charger
Chevrolet Camaro
The Chevy Camaro is indeed a sharp and sporty car, though it still experiences a very high depreciation rate. If you want to be specific, it loses 39 percent of its original value after owning it for a year. This is more or less equivalent to losing $8k in just the first 12 months of owning it. Aside from this, you need to keep in mind that it has a total cost of $40k in the first 5 years. There are many reasons to compare this vehicle to the Mustang, SS, or Corvette. Among other things, they are all American sports cars that have a high depreciation rate and many followers.
Chevrolet Camaro
Mitsubishi Lancer
The Mitsubishi Lancer has also made it to the list with its 35 percent depreciation rate after only a year. Although the manufacturer likes to think of it as affordable, it is worth taking a closer look at its overall costs first. There are several things you need to consider before you purchase one. When compared to the previously mentioned Mini Cooper, a Lancer indeed has a retail price that is cheaper by $4k. However, the Cooper has an overall cost of ownership that is lower by $5,000! Things like this are important when you are considering buying a car, new or old.
Mitsubishi Lancer
Cadillac CTS
Another iconic luxury car, we have the Cadillac CTS. It is a mainstay in the luxury car manufacturer’s lineup, and you do not have to be a genius to figure out why. Despite everything, this solid and powerful road warrior is facing a 36.9 percent depreciation rate. If you got the new 2015 model at its original price of $45k, its value has now been cut in half.
Cadillac CTS
Chrysler 300 C
Are you looking for luxury sedans? If so, the Chrysler 300 C might be what you are looking for. This premium, tough-looking American classic sedan was first introduced in 2005. There were many attractive features that appealed to the general public. Among these are the Hemi V8 as well as the option for a V6 or V8 engine. It is not the cheapest car and you will need to shell out $40k for a brand-new unit. However, it is good to know that its value will go down to as low as $20k in only a matter of years. If you want a muscular and powerful luxury sedan, take a peek at the used car market and get a Chrysler 300 C for yourself!
Chrysler 300 C
Buick Regal
We bet Buick is thankful that the Regal has reinstated it as a topnotch manufacturer of premium compact sedans. Many people have described it to be the American Opel Insignia, complete with the Buick badge. It has made its way to the top of affordable luxury sedans with its wide array of add-on features, numerous turbocharged engines, and drivetrain choices. If you want a new one, you will have to shell out $30k for it, though it is a better idea to simply buy a secondhand unit. There are deals as low as $10k, a trend that will probably continue once the new model is released.
Buick Regal
Fiat 500 L
The Fiat 500 L was introduced in 2014, though it did not live up to the expectations the manufacturers set for it. It negatively affected both its popularity and resale value. It is true that the vehicle came with a spacious cabin, decent trunk, great visibility, and user-friendly features. However, these did not make up for the below average performance and subpar power that the car delivered. The base price for a 500 L is a little more than $20k, but you will be better off getting an older unit for less than $14k. Needless to say, this is a significant amount of depreciation for a car that is only several years old.
Fiat 500 L
Jaguar XF
Jaguar, like other luxury car manufacturers, suffers from high depreciation rates. However, this is the exact same reason why this mid-sized luxury sedan is available for a lower price on the used car market. In 2009, the XF was introduced at a base price of $50,000. It came with a V6 300 hp engine, though people could still upgrade it to a V8 420 hp engine and add on a bunch of other features. A 2009 or 2010 unit will now cost less than $15,000! If you want our opinion, we say go for it. After all, an XF in great condition will come equipped with a complete leather interior, topnotch safety features, an amazing engine, and a wonderful design.
Jaguar XF
Lincoln MKZ
You probably already know that there is a lot of competition in the segment of executive sedans. For released the Lincoln MKZ to compete with the Mercedes C-Class and BMW 3-Series, though it never received much attention. The leather interior, 263 hp engine, and topnotch features are all appealing, though it still did not make the cut. Originally priced $35k for a base model, you can now find a 5-year-old one for only $15k.
Lincoln MKZ
Nissan Maxima
The Nissan Maxima offers great value if you buy a used unit. This luxury vehicle has made a name for itself since it is powerful, large, comfortable, and well-equipped. They released a new generation in 2016, and people appreciated the modern features, great styling, and V6 300 hp engine. These cars originally had a price tag of $32k, though you can find older units at around $20k. That is definitely a steal, especially if you manage to find one that is still covered by the manufacturer’s warranty!
Nissan Maxima
Kia K900
The Kia K900 was the attempt of the Korean manufacturer to join the full-sized luxury sedan race. It is considered to be the rival of the Mercedes S-Class and BMW 7-Series. Equipped with premium features, creature comforts, and a powerful engine, it is not a cheap car with its $60k price tag. This is a fairly low price when compared to other luxury vehicles, though it is certainly more expensive than your regular Kia cars. Nonetheless, the price continues to go down thanks to car depreciation, just like other premium cars. These days, you should be able to find a secondhand unit for only $30k.
Kia K900
VW Passat
Even though the VW Passat is not a luxury vehicle, the mid-sized sedan still earned a spot on our list. It is actually a pretty good car that has been equipped with advanced features, great engines, and plenty of style. You’re probably wondering: what went wrong? This car received a lot of flak when Dieselgate hit the news. You should not be surprised to find a 2014 VW Passat for only $12k when the original MSRP was $25k. We know that such a low price is attractive, but we don’t think it is worth it to buy one with a diesel engine.
VW Passat
Audi A8
The Audi A8 might just be the most popular premium sedan out there. It is a great buy since it comes with lots of elegance, powerful engines, luxury qualities, and Quattro AWD. It was constructed using aluminum, which is why the model is agile and light. The latest make has been available for a significant amount of time, so it is not surprising to hear that it has depreciated significantly. The price for the base model used to be $80k. In the used car market, a 2012 A8 unit should set you back by $30k.
Audi A8
Cadillac XTS
The Cadillac XTS was first released in 2013. The mid-sized car boasted an elegant design and plenty of premium features, though it hardly made an impact on buyers. Among other things, it did not come with amazing driving dynamics that the CTS or ATS did. It did not have the same level of luxury as the CT6 either. The Cadillac XTS still came with a powerful 304 hp engine and an FWD, however. It had a base price of $45k, but there are offers on the used car market for half of that price.
Cadillac XTS
Acura ZDX
The ZDX was a great car in theory. We applaud Acura for trying their hand at a crossover with a sporty appearance, low roofline, AWD, and powerful engine. Unfortunately, it quickly became obsolete since a lot of people disliked its appearance. The appearance was simply a little hideous. Nonetheless, you can get a good, if ugly, car for only $13k. That’s a far cry from the original MSRP of $35k!
Acura ZDX
Maybach 57/62
If you were looking for a luxury sedan, it does not get more extravagant than what Maybach has to offer. In 2006, the Maybach 57 was introduced at a base price of almost $400k. Meanwhile, the 62 S was for sale at a price of $500k. How crazy is that? More unbelieve is the fact that you can now find used units on the market for only $50k!
Maybach 57/62
Cadillac SRX
Are you looking for a gorgeous SUV with topnotch performance, interiors, and quality? If so, look no further than the Cadillac SRX. It has a 265 hp engine and premium features at a reasonable price of $40k. However, you might get a better bang for your buck when you go to the used car market. You can find an old unit for only $15k!
Cadillac SRX
Chrysler Aspen
If towing capacity, features, and seating capacity are important considerations for you, don’t forget to consider the Chrysler Aspen. This is an attractive and comfortable vehicle with a signature rugged look. Unfortunately, more people have forsaken it for the more stylish SUVs. It used to come with a price tag of $40k, though used units now go for $12k to $13k.
Chrysler Aspen
Mercedes CL-Class
You will have a hard time finding a more prestigious two-door Mercedes than the CL series. Fine, the SL wins in terms of sportiness, but the CL still has amazing engines, a spacious interior, and plenty of premium features. Its $25k resale value is a huge reduction from its $100k base price.
Mercedes CL-Class
Mercedes R-Class
Mercedes created the R-Class as an attempt to become part of the crossover market. However, it turns out that their target audience simply wasn’t big enough to keep the R-Class afloat for very long. After just two years on the market, the van became obsolete. All the same, many buyers said the van was very comfortable, luxurious, and had great engines. The initial price for the van was $50k. Nowadays, you can find a used one for around $19k.
Mercedes R Class
Dodge Magnum
The only significant differences between the Dodge Magnum and the Charger are the designs and the sleeker profile. The Magnum features the same mechanics as the Charger. Not only that, but it has the same mechanics as the Chrysler 300C, meaning it had RWD, fantastic engines, and great build quality. As it turns out, this station wagon didn’t do too well once it was released since that was when the SUV craze began. For this reason, you can find a used Dodge Magnum for as little as $7k.
Dodge Magnum
BMW 5 Series
While buying a new BMW 5 Series will cost you a lot at the moment, in about a year or so, its value will drop approximately 18%. This model may be more efficient with its 2.0L, 4-cylinder, 248 hp engine, but its value will still drop drastically. After three years, the 5 Series will lose as much as 52.6% of its initial value. If you want to buy one now, you can find a used one for around $30,846.
BMW 5 Series
Mercedes-Benz E-Class
Just like most high-end cars, the Mercedes E-Class isn’t capable of hanging on its value for long. Despite the fact that it has a stunning design and excellent performance, the E-Class loses a whopping 49.9% of its value. Even when a car is one of the most luxurious models out there, there is no guarantee that the high price will pay off in the long run.
Mercedes Benz E Class
BMW 3 Series
Even though the BMW 3 Series is one of BMW’s best-selling models, its depreciation rate has been on the rise over the last few years. Today, the 3 Series will lose 49.8% of its value within the first three years of ownership. Because older models are much cheaper than the newer ones, this model has become popular due to its affordable price. Over time, other BMW models’ prices have only increased.
BMW 3 Series
Ford Taurus
One of Ford’s cheaper models, the Ford Taurus happens to have one of the highest depreciation rates out of Ford’s cars. Ford is known to make great trucks, sedans, crossovers, and even sports cars, the Taurus loses a whopping 49.7% of its value in the first three years alone. For a family sedan, that number is incredibly high. All the same, the Taurus is doing great in sales and reviews.
Ford Taurus
Chrysler 200
Chrysler is known for their more affordable prices, but they’re still considered to be a luxury brand. Despite their models not having all the luxurious features that other brands do, they are considered to be luxurious all the same. Naturally, the biggest downside to the Chrysler 200 is its depreciation rate. After just three years of ownership, the car loses 48.4% of its value.
Chrysler 200
Volkswagen Jetta
While the Volkswagen Jetta is similar to the Volkswagen Passat, the Jetta is a great car according to customer reviews. While the family sedan has both good and bad qualities, the most significant downside of the model is its depreciation rate. After three years, the Jetta loses 48.1% of its value.
Volkswagen Jetta
Audi A3
Audi is known as equal to brands like BMW and Mercedes since their models all have plenty in common. All their cars have German engineering, luxurious designs, and features, and the most significant similarity is the cars inability to keep their value for long. While the A3 is one of Audi’s cheaper models, it is very popular since it’s a great family sedan. Its biggest drawback is its loss of value. After just three years of ownership, the car will lose 47.9% of its initial value.
Audi A3
Jaguar XJL
After just three years of ownership, the Jaguar XJL loses a whopping 66.4% of its value on average. Since Jaguar is one of the most famous luxury car manufacturers, their cars normally lose their value quite drastically.
Jaguar XJL
BMW 6 Series
Since the BMW 6 Series is considered a luxury car, it’s a little odd that it’s available as a coupe, convertible, or as a four-door sedan. It has a slightly faster depreciation rate than the 5 Series. The BMW 6 Series loses 68.3% of its value overall.
BMW 6 Series
Ford Fusion Energi
Ford began a new trend with the Fusion Energi as a luxurious eco-friendly midsize sedan. “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. This plug-in Ford has a depreciation rate of 69.4%.
Ford Fusion Energi
Mercedes-Benz S-Class
Mercedes’ signature sedan, the S-Class has top-of-the-line features that make it very expensive to buy new. With the model’s history, the luxurious features will cost a significant amount to repair if the need arises. While the S-Class isn’t the fastest-depreciating Mercedes, it does lose 69.9% of its value.
Mercedes Benz S Class
BMW 7 Series
Compared to their Mercedes equivalents, the BMW 5 and 7 Series depreciate slightly faster. While it has a high-performance rate, the BMW 7 Series loses 71.1% of its value over its first five years.
BMW 7 Series
Chevrolet Volt
The Chevrolet Volt made waves in the motor industry after it was announced. At the time, an electric car with a gasoline-powered engine that was capable of charging the batteries while driving was unheard of. It was a revolutionary concept. Now that it’s getting older, its value is dropping at a high rate, with a 71.2% loss.
Chevrolet Volt
Ford Focus
While Ford cars typically don’t hold their value very well, they’re still dependable and affordable that almost always get great reviews from customers. Ford Focus is a perfect example in this case. This compact family hatchback became popular in 2018, and just like the rest of Ford’s models, its value dropped. The Focus loses 45% of its value over three years, making it a great car to buy used.
Ford Focus
Infiniti Q50
Over the years, Infiniti has gained popularity in the luxury cars industry and made a name for themselves. They combine Nissan’s engineering with powerful engines and a cutting-edge style, creating a sporty flair to their cars. All the same, the Q50 doesn’t hold onto its value as the other Nissan cars do. After three years, it loses 46.9% of its value.
Infiniti Q50
Cadillac ATS
Despite the fact that the Cadillac ATS has the best features a luxury car can have, it does lose 50.4% of its value. All the same, it has 4G WiFi, a remote start via smartphone, and two great engine options.
Cadillac ATS
Alfa Romeo Giulietta 2.0
Alfa Romeos are known to lose their value quickly, just not quick enough to be on this list. All but one, that is. The Giulietta looks just as gorgeous as the rest of their hatchbacks but loses 73.9% of its value after just three years of ownership.
Alfa Romeo Giulietta 2.0
Fiat Panda 0.9 Twinair
With its compact 4×4 design, the Panda can be seen as the ultimate weekend car. It’s on our list because it loses a whopping 73.3% of its value. Unfortunately, it seems like Fiat has somewhat of a pattern with their cars since they tend not to be able to hold onto their value.
Fiat Panda 0.9 Twinair
Fiat Punto 1.4
Fiat tends to be the first name to come to mind when thinking of compact cars. While the Punto 1.4 is definitely a compact car, it’s only available in specific countries. This might be a good thing as, after three years, the car loses 73.8% of its initial value.
Fiat Punto 1.4
Buick Enclave
Lately, Buick began drifting away from their affordable cars and move in the direction of luxury cars. Their audience seems to be on board with this change. This is all well and good, but there is a reason we have the Enclave on this list. It drops 46.8% in value. While this might not be as high as other cars on this list, people shopping for crossovers wouldn’t want to buy one that won’t last.
Buick Enclave
Toyota Camry
The Toyota Camry might be the best-selling sedan in the U.S., but it still earned a spot on our list. Since there is a new model, the old one tends to be neglected by buyers who prefer getting the latest one. This leads to the old model having a high depreciation rate.
Toyota Camry
Mercedes-Benz C250
The Mercedes C250 may be a sought after luxury car, but it does come at a high price. It has a depreciation rate of 34.4%. In its first year alone, the C250 loses $15,247 in value. This can be avoided by upgrading the older model and adding the new features rather than buying a brand-new car.
Mercedes Benz C250
Volvo S60
Just in its first year, the Volvo S60 loses approximately $14,204 of its value which is around 34.4%. Since this four-door rates high on the safety scale and has great performance, you might want to buy it used. A new one will cost you $34,150-$59,300.
Volvo S60