30 Cars That Are Plummeting in Value
That sweet-smelling new car starts losing value the moment you drive it off the dealer’s lot. According to AutoTrader.com, “the average car depreciates in value by 35 percent in three years.” Here are 30 cars that take the steepest plunge.
BMW 5 Series
This handsome ride loses a staggering 52.6 percent of its value after three years, making it the worst car for depreciation over that period, according to Auto Trader’s reporting on a 2018 study of more than four million car sales to determine which cars depreciate the fastest over three years (the average lease term). Find out if the 5 Series ranks as one of the best used cars to buy.
This stately, sleek Benz drops in value by half over three years mostly because of the bulk of E-Class purchases are actually three-year leases, so there is always a supply of pre-owned Mercedes-Benz on dealer lots. Also, a factor in why many people only want to drive luxury cars for three years at a time is the high cost of maintaining them as they get older. Dare to keep an E-Class for five years and see your fancy ride shed $35,000 in value!
According to Auto Remarketing, “The Passat underwent a significant redesign in 2016, its first overhaul since it was introduced to the American market in 2011, to include upgrades in its safety features and infotainment technology.” The predictable result of the remodel has been a reduced demand for older Passats and that has lead to high depreciation. There are secrets to buying new and used cars—here are 34 car buying tips to read before driving to the dealer.
BMW 3 Series
What is it about BMWs? The Series 3 loses nearly half of its value after only three years! Here’s one of the main reasons why the BMW Series 3, like other luxury cars, lose so much value so quickly: leases. The majority of high-end vehicles are leased and the three-year lease is the most popular, meaning there is a flood of pre-owned BMWs and Mercedes-Benz sedans on lots making this a supply and demand issue more than a long-standing quality one.
This electric vehicle was once an auto industry disrupter but with the EV range expanding, the first generation Leaf’s 107-mile range is closer to a dinosaur of the past than a vision of the future. As a result, the Nissan Leaf is depreciating at a rapid rate, the highest of any car on the road over a five-year period per iSeeCars.com, losing nearly three-quarters of its value not long after you’d have spent the generous tax credits awarded for the initial purchase.
A massive remodel of a popular automotive nameplate is another cause of quick depreciation in cars. According to The Drive, the Impala was overhauled in 2014 which put downward pressure on previous models that suddenly weren’t as sexy to drive. Whether you want an affordable used Impala or a new Toyota, here are simple tricks for outsmarting car salespeople.
The Korean manufacturer’s luxury brand loses over a third of its value after just 12 months which isn’t good for your resale or trade-in prospects but is a boon for those shopping in the pre-owned car market. In fact, according to a new iSeeCars.com study, the Genesis G90 is one of the fastest selling used cars sitting on the market for only, on average, 56 days.
Gas prices can have a dramatic impact on long term car value. As prices at the pump rise, hulking SUVs like the Yukon depreciate in value because buyers start doing the math to see how much it will cost to fill up the tank and how little MPG they will be getting in exchange for the thrill of being at the helm of this V8 beast.
While the brand has proven to consumers that it represents true class on the road, the Cadenza is a model that hasn’t quite caught on. This unfamiliarity leads to a rapid depreciation of value as consumers looking for a used car will not be rushing out to buy a vehicle they’ve likely never heard of. Conversely, this means there is value for used car shoppers who’ve done their research and know that Cadenza is a very fine ride indeed. The Kia brand is racking up dependability awards; find out which other cars will last you 250,000 miles.
BMW X1, X3, X5, X6
In a five-year period, these luxurious BMW SUVs plummeted in value at a rate of more than 60 percent, according to a 2018 study of depreciation. Compare that to Toyota models like the Rav4, 4Runner, and Highlander, all of which have a lower sticker price and retain on average 17 percent more of their original cost. If you must own a BMW, don’t count on resale or trade-in value down the road—such is the price of luxury.