Car depreciation is a source of intense consternation when purchasing a new or used vehicle. All cars lose their value, and this process begins sharply, right at the point of purchase. The average new car loses approximately 10 percent of its value as soon as it’s driven off the dealer’s lot. At the end of the first year, the car will lose an additional 10 percent on average – and often much more. If you’re looking to purchase a vehicle soon, it pays to know the market. Below is a list of 10 vehicles that are currently losing their value the fastest and why.
10. Nissan Leaf
The Nissan Leaf is Nissan’s great success in the realm of electric vehicles. Yet it suffers one of the worst drops in value of any vehicle on this list. The abundance of leased Leafs hurts its resale value, as does the nearly $7,500 in tax credits, and more in dealer incentives or discounts. All of these mark offs from the total cost filter down when the car is resold.
9. GMC Yukon
The new redesigned GMC Yukon may have suffered in its redesign, or else new car buyers are doing the 5-year cost-to-own research as seeing that a brand new Yukon ($47k) will cost them upwards of $70k just to own for the first five years. Whatever the reason, these SUVs are depreciating nearly 33 percent in just the first year.
8. Lincoln MKS
The Lincoln MKS is soon facing obsolescence. It has been a slow-selling model that appealed to those car buyers seeking luxury under $50k. Because it was never a standout top-seller, it’s now worth 30.4 percent less than what its owner paid for it last year.
7. Chevrolet Camaro
The Camaro is reported as losing 39 percent of its value in the first year. This is one of highest depreciation rates on this list. The average 5-year total cost to own a 2018 is about $40k. It’s $23.7k off the lot and loses a little more than $8k in the first year of ownership.
6. Hummer H2
Back in the day, it was crazy popular despite all the downsides and pretty expensive at over $60,000 base price. But, today these gas-guzzling, boxy SUVs can be found for less than $20,000. They are still kings of the parking lots thanks to enormous dimensions and they still are very expensive to run.
5. Mercedes S-Class
The Mercedes S-Class is a vehicle renowned for being more advanced than its competitors are. The typical off-the-lot cost is above $70k, but depreciation is the most remarkable feature a new owner will experience. Last year’s models are now worth 32.4 percent less.
4. Jeep Commander
In the best tradition of Jeep models, Commander was a big, capable off-roader with luxury interior and features. It also had a very boxy styling with a signature front end which was not well received by some buyers. However, it is still very competent and quality SUV with a lot to offer. It was discontinued in 2010 and today you can find nice examples for around $10,000 which is a big drop from the $40,000 price when new.
3. Aston Martin V8 Vantage
The Vantage was a smaller and cheaper model launched in 2009. It featured V8 engine and all the luxury items and details Aston Martin is known for. With the base price of $120,000 it was very expensive but today, you can buy it for as little as $35,000 which is a price of a boring, ordinary family sedan.
2. Subaru Legacy
The Subaru Legacy has two interesting and distinctive features that make it a pretty desirable second-hand car. One is a powerful yet economical boxer engine and the other is intelligent all-wheel drive which comes as standard and provides additional security in demanding driving conditions. You can find few-year-old models for around $10,000 which is a steal.
1. BMW 328i
Luxury cars are prone to depreciating more quickly than roadrunners people buy and drive hard and often. The BMW 328i is an example too of a popular luxury vehicle that’s leased in large numbers, over-supplied like Chevy’s Impala, and destined to depreciate even faster.