11 Vehicles That Depreciate Quickly

1

Jaguar XJ

While Jaguar (along with its counter part Land Rover) like to try and boast its British sophistication, the car itself is an Indian car (sold by Ford and purchased by Tata Motors). The vehicle is running off of the Ford designs that went with the sale of the company, yet resale values of this vehicle do drop off substantially after just a single year. Jaguar’s have never faired terribly well on the resale market due to major mechanical issues, which has frightened many away from the luxury vehicle (you’ll find this is a common thread for most luxury vehicles). With a first year drop off of nearly 32 percent, this vehicle just makes it outside of the top 10.

2

Cadillac CTS

The Cadillac CTS is the automaker’s flagship vehicle. With the recent design, the mid sized sedan continues to turn heads and compete with other luxury vehicles on the market. However, it also has a substantial financial drop off. After just one year, the vehicle drops a full 34 percent. This reflects in the resale value, but it also means you can land a one year old CTS for a third off the original price tag.

3

Kia Optima

Kia vehicles already start at a reduced price tag over most of the competition, which is one of its major selling points. However, the amount of money you land back when trying to sell is considerably low than most of the competition. While there are many reasons behind this (the market for resale Kia vehicles just is not high), the drastic drop off of 35 percent places it squarely in the top 10 of vehicles with terrible resale value.

4

Mitsubishi Lancer

Mitsubishi has dropped off a bit in recent years. It no longer has the massive production as other auto manufacturers. The Mitsubishi Lancer remains one of the company’s top sellers though. With a 35 percent drop off after the first year, it does make the vehicle less desirable to buy. Some of the crossover SUVs the company recently released are helping make up for this, but it is not good for the Mitsubishi auto manufacturer.

5

Chevrolet Express

You may have never heard of the time, but you’ve probably seen the vehicle before. It is a cargo van, often without windows. It tends to make an appearance in most spy, kidnapping or action movies. While this really isn’t a consumer vehicle, it is heavily used by small businesses. The main reason the vehicle has a low resale value (a drop of 37 percent) is because most people hold onto these vehicles for longer, and those who do buy want something new and now several years old with heavy miles on it.

6

VW Beetle

The Beetle has a very niche audience. Due to the design it isn’t something that attracts a wide audience. It is something you either really like and will purchase, or you don’t like it at all and wouldn’t touch it. Because of this, the resale value drops off after one year by 37 percent. It does have some nice handling and performance features, which are found in other VW manufactured offerings, but it also has extreme blind spots, which can turn off even those curious about the vehicle.

7

Hyundai Genesis

Hyundai has been attempting to promote itself as a luxury brand for a while now, but it hasn’t really caught on. This is a difficult market to break into, as most players have been well established for a long time. BMW, Lexus, Cadillac, all have familiar names and with it repeat buyers. Steaming shoppers away from these other brands has proven difficult, which is why the Hyundai Genesis is struggling. It also is why the resale value drops off by 38 percent after one year. Used car buyers tend to not look towards Hyundai. Another reason is used luxury vehicles typically do not have a long shelf life. These vehicles are made for people who buy the vehicle and will trade it in after a few years, not for someone who wants it (typically) for a decade.

8

Chevrolet Camaro

The muscle competition is back, and while the Camaro has done fine in sales, it still is unable to compete with the Ford Mustang. Plus, most who want this vehicle tend to look towards the brand new releases (even though design wise the shapes are not all that different). With the stark competition, the massive blind spots and the desire to always buy new, the Chevrolet Camaro has a 39 percent depreciation value after just one year.

9

Mercedes Benz SL Class

This really is the cost of buying a luxury vehicle. The resale value just isn’t there. It is like buying a Tiffany diamond. Yes, you pay a pretty penny for it and the quality is typically superior, but when you go to sell it the price is even with options people paid substantially less for. With this SL Class, you can expect to see a 41 percent depreciation value after only one year. This means the $84,000 price tag drops to around $52,000 after a single year. While not great news for those who want to upgrade their own vehicle every few years, it is fantastic news for those who are willing to wait a year or two.

10

Dodge Charger

This full sized muscle car comes with a massive engine and can out perform just about any other vehicle in its class. However, the full sized sedan market is starting to move over to the crossover vehicles as the crossovers offer more space and more leg room. While many crossover SUVs are unable to compete with the engine under the Charger’s hood, this sedan sees a first year depreciation drop off of 45 percent.

11

Nissan Leaf

Now this is an electric car that simply has not fared well at all. The major problem with the vehicle is that it is both all electric and the driving distance is substantially short. It is more of a local commuter car than anything else. Because of this, the market for a used Leaf vehicle is low. Most people who are looking to buy an electric vehicle want something newer with updated technology (like buying a brand new phone over a phone that is a year or two old). With a 48 percent drop off after one year, you can go out and purchase the used vehicle for almost half the price.

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