When buying a new car, most people understand that they are losing a fair amount of money the second the car leaves the lot. On average, one year old cards depreciate roughly 21.2 percent. That’s a significant decrease in value for just 1 year in age. What’s even worse to consider is that there are many cars which are known to lose even more value than that. These cars are depreciation magnets and buyers should beware if consideration is being given to purchasing one of these vehicles.
With the worst depreciation culprits rounding out the bottom of the list, here are several known to have significant depreciation after their first year of ownership.
- Buick Regal – Buick Regal’s depreciate on average 31.2% in the first year. That’s more than $10,000 and nearly 1/3 of the vehicles overall value.
- Cadillac CTS – Cadillac’s introductory offering does not hold value well, depreciating roughly 31.8 percent its first year. In dollars this equates to over 13k.
- Jaguar XF – Jag’s depreciate nearly $20,000 dollars their first year equivalent to around 32.3%
- Nissan Maxima – the first car on our list to officially lose over 1/3 of its value within 1 year of ownership!
- Mercedes-Benz C250 – Even luxury brands sometimes have problems. Mercedes depreciate over 34 percent their first year. Combine that loss with the cost of ownership associated with a European Luxury vehicle and you better prepare your wallet to take a hit.
- Kia Cadenza – The South Korean’s made the list with their Kia Cadenza which boasts 34.3 percent depreciation after year 1. It seems that vehicles across a wide range of manufacturers can be subject to massive depreciation, regardless of the reputation associated with the brand.
- Volvo S60 – Swedish car manufacturer Volvo also made list with their sporty S60 model. First year depreciation is almost identical to that of the Kia Cadenza at 34.4%.
- Lincoln MKS – Automotive giant Ford takes a hit with their luxury Lincoln brand. The MKS sees a depreciation of 34.5% and loses over $16,000 its first year!
- Fiat 500L – Fiat leads the list with the worst depreciation of any car in 2016; 34.6%. Although this is more of a budget vehicle, it still amounts to over $8,000 of the vehicles value in the first year.
As you can see from the list, car depreciation affects many different brands and models. There doesn’t appear to be any propensity towards a specific vehicle manufacturer or country. This may be interpreted as there being a more even playing field with modern manufacturing techniques amongst the different car companies.
When shopping for a new vehicle you will want to take resale value into consideration before you make your purchase. Most people don’t keep their cars forever and eventually sell them for a new vehicle. If you don’t want to take a massive depreciation hit, it may be in your best interests to purchase a vehicle that’s already a year old with some miles on it. At least this way you don’t lose a third of the vehicles value the second you drive off the lot.
If you have already made the error of buying a vehicle that has depreciated too quickly that you can’t get off your hands, nonetheless, feel free to cut your losses and get cash for your unwanted car, and / or donate your car for a tax deduction by filling out the form on the home page, or by calling us dialing the number above.