20 Cars That Are Plummeting in Value in 2018
The thrill of owning a brand new car is something to treasure, but we all know the old rule of depreciation. The car, once its in your hands, isn’t “new” and therefore drops by 10 percent in value once you take it off the lot. However, the depreciation rate doesn’t stop there, it continues throughout the first year of ownership. The vehicle will often lose an additional 10 percent in value at the minimum, though for many cars, that figure is much higher. Depreciation continues through subsequent years of ownership too, meaning the car is still losing value for up to 4 more years, until finally, after 5 years, 60 percent of the retail value has been lost. Before you go to purchase a new car, you should take a look at the depreciation rates of some common vehicles to ensure that you don’t get stuck with a rate sinker or if you want a used car, you can see what cars are your best bargain.
1) Hyundai Genesis
The Hyundai Genesis is a pricey car like most luxury vehicles, however, it’s not holding the value of comparable other models. Fans of luxury cars may opt to purchase a Lexus or Mercedes car because they’re more familiar with those brands’ luxury offerings. Experts say that the Genesis will depreciate in value by 38 percent within the first 12 months of ownership. Car buyers looking for a car that will hold in value should look to purchase a 1-year-old Genesis — not only will you get a good deal, you’ll still get a great car as Consumer Reports just ranked this as top luxury vehicle. You’ll pay $16k off the new price tag of $52k.
2) Smart ForTwo
A Smart ForTwo may be a “smart car,” but it’s not exactly a wise investment if you want a car that will hold a good amount of value. Just take a look at the car and you’ll see why it pales in comparison to other eco-friendly cars. The interior isn’t exactly roomy and leaves very little space to stretch and it doesn’t pack much storage space either. You can enjoy decent gas mileage, however, that may not make up for the rest of the shortcomings. The Smart ForTwo has lost 36 percent of its value off the list price, a figure around $14k, in just one year.
3) Chevy Impala
Chevrolet vehicles are known for their dependability, craftsmanship and long-lasting nature. Impala’s don’t seem to have the same value durability as other cars from Chevy. The vehicles are often used as company cars or by car rental places. It’s easy to find an Impala because they’ve flooded the market, and the demand is small. If you owned a model at around $27k, your vehicle now has a value of 33.5 percent less.
4) GMC Yukon
The Yukon is a formidable SUV but today’s buyer has plenty of choices out there, and this one doesn’t exactly pass muster. The owner of a brand new Yukon can expect their $47k to purchase but that number quickly balloons to $70k over the first 5 years of ownership after gas and maintenance. The redesign hasn’t attracted many fans who need to own a used one, so the vehicles are depreciating by almost 33 percent.
5) Lincoln MKS
Slow to move off the sales floor, the Lincoln MKS is dwindling in prominence. When was the last time you saw a Lincoln MKS on the road? The luxury vehicle has many competitors and so it fails to hold much value — already a MKS is worth 30.4 percent less than the sale price. If you just have to have a Lincoln MKS, be smart about your shopping and buy used over new.
6) Mini Cooper
Cute, colorful and popular, the Mini Cooper is a car you see plenty of on the road. Depending on your model, it may depreciate quicker than other cars in its class. The average 2015 Mini Cooper is now worth 29.3 percent less than when it was new on the lot. You may get lucky and buy used at a great deal but getting a good return for your used Mini Cooper may be quite hard.
7) Jaguar XK
The Jaguar XK is another obsolete model among luxury vehicles and has been replaced. Now drivers can pick up the sleeker Jaguar F-Type which has a larger fuel tank volume and is a bit more sportier. You may have purchased a Jaguar XK for $84.5k but now that car has dipped by nearly 30 percent in value in just a year.
8) Nissan Rogue
The Nissan Rogue isn’t a stand-out vehicle by any means. While it used to be popular among Nissan loyalists, the redesign of the Rogue didn’t win many fans. As such, the depreciation of the Rogue was affected at more than 5 percent. Of course, it still isn’t as bad as the others on our list.
9) Ford Mustang
This one may come as a surprise since Ford Mustangs have been held in high regard for years. The original “pony car type,” Mustangs have been produced since the 60’s and while they look amazing, they don’t exactly hold their value. The Mustang fans often want the newest model as it arrives on the sales floor, which means that the previous models depreciate faster. You’ll be able to find a used Mustang 5.0 for $10k and up — a steep difference from the original new price of $35k.
10) Hyundai Sonata
The Sonata is a popular mid-size known for its reliability and durable performance, but it doesn’t exactly hold value. The interior is nice and large and the car is quite powerful, but you’ll find that the Sonata isn’t anywhere close to the $23k to $30k it cost when brand new. Browse around and you’ll see that some models are now at less than $10,000 which is a significant drop but a good value for a bargain seeker.
11) Lexus ES 350
Lexus is a beloved luxury car manufacturer and it’s true that a Lexus is a great car in terms of look, speed and power. All of this luxury, of course, comes at a price, and not every car in the Lexus line really holds its original value. The Lexus ES 350 isn’t as flashy as other cars in its class, and that’s a shame because an owner will see a $9.1k depreciation after the first 12 months of purchase.
12) Nissan Leaf
Nissan Leaf was a well-received electric vehicle but the 2015 model has depreciated more than any other vehicle. Why? One possible reason is that although Nissan sells them well, there’s an effect where used leased LEAFs are being turned in for new models. The market has plenty of used LEAFs and the resale value has dropped significantly, largely boosted by the lease market and the tax credits.
13) Dodge Charger
The Dodge Charger 2015 model sold for $26k new but it can cost more than double that to own over a 5-year period. Dodge Chargers have a high depreciation rate and can drop more than 46 percent in a year. The Charger is a nice car but compared to others in its class it doesn’t exactly stand out in terms of add-ons and comfort. Today’s consumer has plenty of other comparable cars on the market so the resale value isn’t that positive.
14) Chevy Camaro
Yes, another popular sports car is on the list. The Chevy Camaro, as cool as it is, will lose 39 percent of its original value in 12 months of ownership. Like the Nissan LEAF, that depreciation rate is one of the worst you can have for a vehicle. The Camaro that cost $27k will dip more than $8k plus worse, the 5-year cost of ownership is a reported $40k. It’s fast and flashy, but maybe you should opt for a used Camaro over a new one.
15) Kia Cadenza
The Kia Cadenza was Kia’s answer to the luxury vehicle market but it’s another car that just doesn’t make a splash with today’s luxury shopper. The leather seats, Bluetooth and other features offered in a Cadenza aren’t anything special and this may justify why the vehicle is depreciating at about 38 percent.
16) Volkswagen New Beetle
The Volkswagen Beetle received a makeover in the late 90’s to become the Volkswagen New Beetle and there were several special editions released, even a Barbie-themed version. The New Beetle was then replaced by the A5 Volkswagen Beetle and although it’s popular, it’s not holding value like you would expect. The diesel model was even involved in an emissions scandal not too long ago as the company rigged the software. You can expect a 37 percent depreciation rate in the first year of ownership if you buy a new A5 Beetle off the lot.
17) Kia Optima
Kia makes another appearance on our list with the Optima. The vehicle has sold and was the winner of the International Car of the Year Award. There are plenty of reasons why people love their Optimas, especially when you consider its upgrades, interior, design, and reliability. The cons begin when you look at the lackluster fuel efficiency. In spite of its many pros, the Optima suffers a 35 percent depreciation rate, which means buyers might be wiser with another model in the same class.
18) Chevrolet Express
Chances are you aren’t in the market for a Chevy Express cargo van, however, if you’re trying to purchase one for your business or fleet use, listen up. The 2015 model has a depreciation rate of 37 percent and is costly to purchase. After you buy, the cost of ownership is pretty much the same as the purchase price. Couple that with the fact the new models are virtually identical to the previous vehicles and you get a pretty low interest level when it comes to resale.
19) Mitsubishi Lancer
The Mitsubishi Lancer is the first Mitsubishi vehicle on this list which isn’t bad, but we can’t say the same about the depreciation rate. You’ll see a depreciation rate of 35 percent, a significant loss of value in just a year, especially for a car marketed as affordable. The vehicle will run about $17.5k, but then you’ll see the difference when you see look at a car like the Mini Cooper, which costs more but has a less expensive ownership cost.
20) Cadillac CTS
Cadillac has a nice luxury sedan known as the CTS and it performs well. It’s a great reliable car but the depreciation isn’t so reliable. The 2015 CTS could cost $45k but it has a depreciation rate of 36.9 percent, so you’d pay around $23k or so for the car used.