Before you decide to buy a new car, one of the crucial things to note is its depreciation. As soon as you drive it off the forecourt, it becomes “old,” and its value drops. That loss then continues through subsequent years of ownership. However, depreciation rates for different vehicles are not the same.
Here are 20 cars that are losing their values rapidly. You may want to delete their name from your new-car purchase list. But if you want a used car, you can see what cars are your best bargain.
1. Hyundai Genesis
The Hyundai Genesis is a pricey car like most luxury vehicles, but it’s less competitive than other comparable brands, like Lexus or Mercedes. Experts say that the Genesis will depreciate by 38 percent within the first 12 months of ownership. A 1-year-old Genesis is tremendous value and deserves a purchase. You’ll pay $16K off the new price tag of $52K.
2. GMC Yukon
The Yukon is a formidable SUV but today’s buyers have plenty of choices out there, and this one doesn’t pass muster. The redesign hasn’t attracted that many fans and many are happy to own a used one, so the vehicles are depreciating by almost 33 percent.
3. Lexus ES 350
Lexus is a great luxury car in its looks, speed, and power. Of course, all that comes at a price. However, not every vehicle from Lexus holds its original value. The Lexus ES 350 will depreciate $9.1k after the first 12 months of ownership.
4. Smart Fortwo
Just take a look at this car, and you’ll see why it is not a wise investment. It has a very little space to stretch and not too much storage space either. Although decent gas mileage sounds attractive, that may not make up for the rest of its shortcomings. The Smart ForTwo has lost 36 percent of its value off the list price, a figure around $14k, in just one year.
5. Lincoln MKS
The MKS is a luxury car that is dwindling in prominence. So many competitors means it fails to hold much of its value. It is worth 30.4 percent less than the new sale price, so be smart and buy a used car rather than a new one.
6. Mini Cooper
You will see plenty of Mini Coopers on the road and like many others will be attracted by its cute and colorful appearance. But you might be surprised to know that it may depreciate quicker than other cars in its class, and is not a wise investment. The average 2015 Mini Cooper is now worth 29.3 percent less than when it was new.
7. Nissan Rogue
Nissan Rogue used to be popular among Nissan loyalists despite lacking any stand-out features. The depreciation of the Rogue though was rated at more than 5 percent and is not as bad as the others on the list.
8. Jaguar XK
The Jaguar XK is another obsolete model among luxury vehicles and has been replaced by Jaguar F-Type which has a larger fuel tank and is a bit sportier. Now the XK has dipped by nearly 30 percent in value in just one year.
9. Hyundai Sonata
The Sonata is well known for its reliability and durable performance. Although its interior is nice and large and the car is quite powerful, it doesn’t hold its value. A new Sonata is between $23k to $30k while an old one can be found for less than $10K. That’s a significant drop but a good value for a bargain seeker.
10. Ford Mustang
Mustangs have been produced since the 60’s and have been held in high regard for years. However, they don’t exactly keep their value, as the fans often want the newest models, which means previous models depreciate faster.
11. Nissan Leaf
The Nissan Leaf was a well-received electric vehicle, but the 2015 model has depreciated more than any other car. It may be caused by plenty of used LEAFs flooding into the market, leading to a resale value that has dropped significantly.
12. Chevy Impala
Chevrolet vehicles are famous for their dependability, craftsmanship and long-lasting quality. The Chevy Impala didn’t seem to inherit the same kind of legacy as other models. They’re often used as company cars or by car rental places. If you owned a model at around $27k, your vehicle now has a value which is 33.5 percent less.
13. Kia Cadenza
The leather seats, Bluetooth and other features offered by Cadenza car don't make a splash, and that's the reason why the vehicle is depreciating at about 38 percent.
14. Volkswagen New Beetle
The Volkswagen Beetle had a makeover in the late 90’s to become the Volkswagen New Beetle, and there were several special editions released, even a Barbie-themed version. Then the New Beetle was replaced by A5 Volkswagen Beetle. There is a 37 percent depreciation rate in the first year of ownership if you buy a new A5 Beetle off the lot.
15. Dodge Charger
Dodge Chargers are nice cars, but don’t stand out compared with others in its class in terms of add-ons and comfort. They have a high depreciation rate and can drop more than 46 percent in a year.
16. Kia Optima
The Optima was a well-received car and the winner of the International Car of the Year Award. People love their Optimas, especially the upgrades, interior, design, and reliability. In spite of its many pros, the Optima suffers a 35 percent depreciation rate.
17. Chevy Camaro
The Chevy Camaro is a hot sports car, but it doesn’t correctly hold its value like one. It will lose 39 percent of its original value in 12 months of ownership. The Camaro that cost $27k will dip more than $8k plus worse, the 5-year cost of ownership is a reported $40k. The depreciation rate is the worst of any vehicle.
18. Chevrolet Express
The 2015 model of Express has a depreciation rate of 37 percent and is costly to purchase. Besides, the new models are identical to the previous vehicles, making newer models less attractive.
19. Mitsubishi Lancer
The Lancer is a nice car, but it doesn’t hold its value either. There is a significant loss of value in just a year, as the depreciation rate is 35 percent.
20. Cadillac Cts
The Cadillac Cts is a reliable luxury sedan, and it performs well, but the depreciation rate is high at about 36.9 percent. You can pay $23k for a used Cts, which is far less than a new one which comes in at about $45k.
