Cars That Lose Their Value the Quickest
While everyone knows that as soon as you drive a car off the dealership lot it drops in value, this is not always the first thing on the minds of new car buyers. But maybe it should be, especially given how much more some cars depreciate compared to others. According to a recent report, some cars lost as much as 70% of their value within just five years, while others lost just 30% within the same period.
These findings are based on a report released by used car listing web site iSeeCars.com. The report found that 2014 model cars sold that year depreciated by 49.6%, on average, based on their sale price in 2019. The 20 models on this list depreciated by over 66%.
Most of the cars that held their value the longest are trucks, SUVs, and sports cars, while the cars that lost the most value are primarily electric vehicles and luxury sedans. This closely mirrors the general trend of customer preferences in the U.S. auto market in recent years.
After gas prices fell precipitously in 2014 and have remained below $3.00 per gallon, fewer buyers have chosen cars based on fuel efficiency, and as sales of electric vehicles in particular have suffered, sales of larger vehicles have skyrocketed. These are the worst-selling cars of the decade.
There are other factors affecting how much value a car retains, including how well the vehicle hold together over time. Another important factor is whether the model attracts a lot of buyers on the used car market. According to iSeeCars, high depreciation of luxury vehicles is due to high starting prices and the unwillingness among luxury car buyers to pay high prices for used models. Individuals able to afford expensive vehicles seem to prefer new cars, while the average used car buyer often cannot afford the relatively higher prices for used luxury models. The company added that luxury cars are expensive to maintain, which further depresses resale value. These are the new cars most likely to break down.