Car depreciation is something which many consider seriously before purchasing a new vehicle. The value of things is chopping and changing all the time and cars are no exception to this. Below are 20 models which many avoid as a result.
Depreciation, in simple terms, is the decrease in value of an asset over time. When it comes to car depreciation, there are a number of contributing factors that can impact it. These factors range from more simple things such as quality, brand, and model, to things as complex as the economy, the market, how popular the car is, how many of those cars were originally made etc. In some cases, a car can actually escalate in value over the years. These are what we call collectable cars. They can ultimately be auctioned off for millions.
Investing in used cars can be a real gamble, but if you get it right, you’re laughing! There are many cars that remain at the same value for decades, but some will continuously be on the decline. These cars are the subject of this article, the cars that will probably be worthless within 5 years of being manufactured. These are the cars that you should perhaps consider staying away from if you’re looking to buy brand new. However, if you’re willing to buy second hand, then some of these models are the way to go!
BMW 7 Series: 43.49 Percent
It is such a shame to see cars which, once upon a time, were considered to be incredible and hugely innovative, lose their value so drastically. The BMW 7 series is exceptionally well made, reliable and luxurious, yet it has fallen victim to depreciation.
For some, there is, in fact, a silver lining to all this. While owners of this type of BMW lose out, for buyers of second hand cars, this is ideal. It means they can get hold of reliable, well looked after BMW’s, for just a fraction of the original selling price.
Fiat 500L: 30.0 Percent
You can guess, simply from looking at the below image, why this car has depreciated so significantly. Each to their own and all that, but we can’t see anything attractive about this car. Not only does it look horrible, but it isn’t considered to be particularly reliable.
This car was already starting to depreciate significantly within the first year. There is a chance that this car could make a come back at some point in the future, maybe as a vintage car, but we aren’t convinced. This seems like one of those cars that will simply be forgotten over time.
Cadillac CTS: 40.28 Percent
The Cadillac CTS is a car that will, no doubt, plummet in value over the next five years. It is very likely that this car will be well below half of it’s original selling price in no time at all. This is a car that’s subject to depreciation by definition, since Cadillacs don’t tend to last too long.
It is, however, a very speedy car when it is functioning properly, especially the CTS-V model. It is worth investing in a second hand Cadillac if you can find one at a reasonable price, which is easy to do if you know where to look.
Tesla Model X: 29.0 Percent
The pursuit to prevent climate change means that industries are doing all that they can to reduce their carbon emissions. This has led to the introduction of electric cars. With governments trying to completely eliminate combustion engines, the era of gasoline is coming to an end.
Tesla pioneered the first ever fully electric car, which has meant that these cars have been able to sell for a huge amount of money. However, as the electric industry advances, pioneering companies such as Tesla could get left behind. These cars which the world was completely in awe of initially, will soon seem outdated and, consequently, lose their value.
Lincoln MKZ: 33.8 Percent
This is a car which isn’t very original. As you continue to scroll, you will notice that there are many like it on this list. While it is well made and safe, it doesn’t stand out in any way. Originality is essential in this industry.
As soon as cars like this are no longer new, they lose their value. If there are any issues with the car, then it doesn’t stand a chance at all. It is surprising that car manufacturers even release cars like this when there are already so many of them out there.
Kia Sedona: 29.48 Percent
Mini vans don’t tend to do very well on the used cars market and when it comes to their value, they generally depreciate. The Kia Sedona is one of many models in the range which has plummeted significantly in value, so it is likely that the same thing will occur with their other models.
Since there are so many mini vans on the used cars market, once people are finished with them, they don’t sell for an awful lot. Second hand is definitely the way to go if you’re after a minivan and have a big family and a modest budget.
Mercedes-Benz S-Class: 40.84 Percent
Mercedes-Benz is one of the most successful car manufacturers in the world. They have produced and sold some of the most powerful, luxurious and reliable cars that money can buy. Since they are so highly acclaimed, they can get away with selling their cars at extremely high prices.
However, Mercedes cars actually face some of the worst depreciation rates out there. If your dream car is a Mercedes but you aren’t able to afford one new, you only have to wait a couple of years and that dream might be well within reach.
Volkswagen CC: 23.42 Percent
Volkswagen, another great German car manufacturer, also falls victim to some significant depreciation rates when it comes to the majority of its car models. A Volkswagen CC is a great option if you’re looking for a cheap sedan bought second hand.
The new models of the CC will undoubtedly face the same problem, which means that in about five years time, these cars will be a lot more affordable. Fear not, your dream car, whatever it may be, might actually be within reach.
Nissan Leaf: 21.69 Percent
Electric cars actually tend to have more severe depreciation rates than a lot of gasoline cars on the market at this moment in time. One such electric car that has suffered greatly from depreciation is the Nissan Leaf.
For the Nissan Leaf, it’s the battery that is the main problem, since its life is considerably short. On top of this issue, there isn’t a huge amount of demand for electric cars at this point in time, which makes them worth even less.
Cadillac ATS: 42.15 Percent
The Cadillac brand of cars, from their SUV’s to their sedans, to their performance cars and sports cars, are all subject to depreciation, the kind of depreciation that makes these cars worthless after just five years.
These are good quality, reliable cars, so if you find one at a reasonable price, snap it up! Think how much money you will save by simply waiting five years! When you finish reading this article, you’ll probably never want to buy a brand new car again!
BMW 5 Series: 52.6 Percent
Buying a used BMW is a very smart move. You can quite easily get hold of a model that’s just a couple of years old and, more often than not, almost the same quality as the newest model and for half the price!
Not only are you saving a lot of money, but you’ll also look the part in your suave new car! BMW is a car brand that a lot of people want to get their hands on, but the price tends to put them off, this is a way around that!
Volkswagen Passat: 50.7 Percent
The Volkswagen Passat is one of the most popular Volkswagen models out there. It’s marketing is aimed at quite a broad audience, from your average car buyer, to buyers with families, to single people. This means that it tends to depreciate a fair bit.
This is a car that’s safe, reliable, practical and reasonably priced, even now. You can buy them second hand for a fair price. These are good quality cars, so any repairs you have to deal with later on will probably be worth it.
Mercedes Benz E-Class: 49.9 Percent
There’s nothing quite like realising that you can have a car worth six figures for the price of a Toyota Corolla. There is something hugely exciting about that. It’s better to wait a while for this feeling, than buying a Mercedes new and living with the constant worry that your car will depreciate faster than you’re able to even pay it down.
If you buy a Mercedes brand new, this is a serious concern. Mercedes sedans will be virtually worthless within five years of being manufactured. When you consider how much they sell for, it doesn’t seem at all worth it. However, if you get hold of a unique model, there is a possibility that it will actually increase in value.
BMW 3 Series: 49.8 Percent
A series 3 BMW is an awesome car to buy, no question. It’s sporty, fast, reliable, has a great engine and is also considered a very safe model. These cars are worth buying brand new, even at a high price, since they last such a long time.
However, if you’re looking to save the pennies, you can get yourself a second hand model for a good price. Since they are so well made and durable, reduced quality isn’t something you need to worry about when buying a used model.
Ford Taurus: 49.7 Percent
Ford sedans are an example of a car that will be worthless in just five years. This is mostly due to the quality of the car. Even new, they don’t tend to be very reliable. The quality will only get worse as the years pass, therefore it won’t have a long life.
This is a car that you will be able to source on the cheap, no question, but it may not be worth it. You will face regular repair bills and as the years go on, it’s value will continue to plummet. It perhaps wouldn’t be wise to buy one of these used and it definitely wouldn’t be wise to buy one new.
Chrysler 200: 48.4 Percent
Chrysler like to paint a picture of themselves as the producers of luxury cars, but in reality, they don’t live up to this. While they may have a range of exciting features, look attractive and luxurious, they aren’t built to last, so they don’t have much value.
These cars depreciate at an alarming rate and buyers often find that they depreciate quicker than they are able to pay for the car. This car is risky to buy second hand. While you’ll easily be able to find one on the cheap, you will have to fork out a considerable amount of money in maintenance costs. The Chrysler 200 is a prime example of this.
Volkswagen Jetta: 48.1 Percent
The Volkswagen Jetta is one of the most popular VW models. It is considered to be the twin sister of the Passat. It is considerably smaller and cheaper than the Passat, so it doesn’t resell for very much money at all.
You can purchase one of these second hand for a very cheap price. While it isn’t the fanciest car in the world, it serves its purpose. They come at such a low price second hand, that it would probably still be worth buying one, even if you do have to pay for the occasional repair.
Audi A3: 47.9 Percent
Almost all cars made and manufactured in Germany are subject to some of the worst depreciation rates there are. However, don’t less this deter you from buying one second hand. German cars are made with integrity, they don’t cut any corners and aren’t cheaply manufactured.
There are a lot of cars out there, particularly American cars, which depreciate because they immediately become unreliable. An Audi is a good car to buy second hand for this reason. You will easily be able to find one for under half of its original selling price.
Cadillac SRX: 47.2 Percent
Cadillac SUV’s are in no way safe from the depreciation rates that other Cadillac models suffer from. The quality of these cars, as well as their mass production, amongst other factors, means that these cars depreciate at a fast rate.
For this reason, if you’re looking to buy one of these second hand, it would be a good investment. However, buying one brand new isn’t such a good idea. The newer models will all be worthless in five years time.
Buick Enclave: 46.8 Percent
The Buick Enclave is a car that you certainly shouldn’t buy new. This car isn’t very good to begin with. They are sold at a much higher price than they are actually worth, with price increases to cover not only the cost of manufacturing, but also the costs for the company to actually sell the car.
In buying one of these cars new, you are also paying for the cost of the dealership that has sold the car to you and for the car salesmen that do the selling. When you buy one second hand, you don’t have to cover these costs, so you are left with the actual value of the car.