Cars That Lose Their Value

Buying a new car can be so thrilling, especially if the old one is a clunker that’s been draining your wallet for months. It’s supposed to be an exciting experience. However, there’s always that one person who comes in to ruin the fun with their practical talk of depreciation and how driving a car off the lot takes away half its value. Suddenly, your joy is overshadowed by the reality of things. While the 50% statistic isn’t completely true, cars do depreciate, and they absolutely lose value as soon as you get behind the wheel. Imagine it as a pressure weighted timer, the clock starts ticking as soon as your foot hits the gas.

Buying a new car should be something that is well-researched and thought out. Buying a new car should never happen on a whim because it leaves you open to making mistakes. While the flashiest car on the lot may turn your head, you should know whether or not that car is going to be worth half its value a year or two later. There are no hard and fast rules when it comes to depreciation, but certainly, some cars lose their value faster than others. Make sure you know which cars are which.

The Losers

1.Mini Cooper –Sure, they’re super cute and sporty looking and everyone wants to be behind the wheel of these quirky little cars. But here’s the sitch, their value tanks the moment you slide behind the wheel. It is estimated that they lose close to 25% of their value in the first year that they’re on the road. Not a pretty statistic!

2.Mercedes S Class –When you’re paying Mercedes prices for a vehicle, you want some assurance that the car is actually worth what you’re paying for it. Then don’t buy this one, or you run the risk of being upside down on your loan almost immediately. When you’re dropping over $70K on a car, make sure the depreciation rate isn’t hovering over 30% after the first year.

3.Nissan Leaf –The poor little electric car, the Leaf is the one car that comes very very close to the 50% statistic that people love to spit out. People love the idea of driving an electric car and are often willing to shell out more money for them as well. However, if they knew that the Leaf loses 48% of its value in the first year, they’d probably think twice about purchasing this electric car.

4. Chevy Camaro –While a vintage ’68 Camaro could cost you up to $100K, the same is not true of the newer versions. These beauties are the muscle cars of this generation, but they’re not even close to the original in terms of holding their value. Whether the depreciation rate is the result of stiff competition or if it’s because they just don’t make them like they used to, the 2015 Camaro is worth 38% less today.

5. Kia Cadenza –Sure sure, Kia is taking over the world, and the Optima is one of the hottest new cars on the road. However, the same cannot be said for Kia’s own personal albatross that they just won’t stop making; the Cadenza. Being pumped off the assembly line in a generation where large sedans are the worst selling vehicles on the market, the Cadenza is clumsy and cumbersome and will depreciate nearly 40% in just one year.

6. Volkswagen Beetle –This vehicle’s better made older brother is an iconic image of the sixties and seventies and still gets crazy money when sold these days. The new Beetle is a polarizing vehicle; you either love them or detest them. Turns out, there’s a good reason that they’re hated; they lose 37% of their value in a year. Couple the depreciation rate with the VW diesel scandal, and nothing about this purchase sounds like a good idea.