When it comes to resale value, not all cars are created equal. There are some vehicles that drop thousands of dollars in value as soon as you drive them off the lot. Within the first year of ownership, many cars depreciate extremely fast. When you decide to trade in your vehicle, you might be surprised to find out your ride is worth next to nothing, especially if you own one of these 10 cars.
10. Fiat 500L
Fiat’s 500L actually doesn’t have the worst depreciation value on this list. It is expected to lose 32% of its value in 5 years. The 500L doesn’t have a broad audience and there are some concerns about the car’s reliability. Both of these impact its ability to sell in the used car market. If you are looking for a small car that will retain its value better, you should consider brands like Honda or Toyota.
9. Mitsubishi Mirage
You can expect a Mitsubishi Mirage to lose approximately 43% of its resale value in 5 years. This is largely due to the car’s underwhelming performance a bare-bones features. While it is a cheap car, it tends to struggle to attract used car buyers. It’s a budget-friendly option when you are purchasing a new car, but it isn’t a wise investment if you intend to sell it. A slightly pricier compact car may offer better returns in the long run.
8. Jeep Compass
Even though Jeep is a beloved brand, especially among off-road enthusiasts, the Compass struggles to keep up in the resale market. After 5 years, the Jeep Compass will depreciate 46%. Other models offered by Jeep maintain their value better. For instance, the Wrangler is expected to depreciate only 34% in 5 years. Ultimately, there are better options that will hold their value in the compact SUV market.
7. Dodge Charger
The Dodge Charger is an iconic car, but it struggles to maintain its value. A base model is expected to lose 49% of its value in the first 5 years. That said, some of the high-performance versions of the Charger might maintain their value better than standard models. In the end, if you are thinking about buying a used muscle car, you might want to consider something other than the standard model Charger. Its initial thrill might not justify its long-term cost.
6. Chrysler Pacifica
Chrysler’s Pacifica is a good family-friendly car, but it doesn’t have a great resale value. Believe it or not, minivans have a steeper depreciation rate than SUVs or sedans. A Chrysler Pacifica is expected to depreciate by about 52% after 5 years. Generally, buyers prefer SUVs and if you are looking for long-term value, you should likely reconsider the Pacifica or any other minivan.
5. Nissan Leaf
In a 5-year span, the Nissan Leaf is expected to depreciate about 54%. Although it is an affordable and eco-friendly vehicle, older models have a limited range and dated design. Generally speaking, car buyers are drawn to newer EVs on the market. They want something that will offer a longer range and better technology. When it comes to used EVs, battery degradation can be a major concern, which contributes to its sharp depreciation as well. Overall, the Nissan Leaf is a decent choice for short commutes, but it’s not great for resale value.
4. Cadillac XT5
Luxury SUVs don’t have the best resale value, putting the Cadillac XT5 in a poor position when it comes to trading it in or selling it used. This SUV will depreciate 54% in 5 years. The reason for its steep depreciation is high maintenance costs and stiff competition in the luxury SUV market. Buyers tend to gravitate toward German brands such as BMW, Audi, and even Mercedes. If you are taking resale value into account, it may be in your best interest to look for options with stronger brand loyalty.
3. Jaguar XF
Jaguar recently stopped production on the XF, which isn’t going to help its resale value either. You can expect it to depreciate 54% in 5 years. Jaguar’s high maintenance and repair costs tend to deter used car buyers who are typically money-conscious. Rather than going for a Jag XF, you might consider a Lexus RX, which only depreciates about 39% in 5 years. Just shifting your focus to another brand can make a huge difference in the car’s resale value.
2. Chevrolet Bolt EV
Although electric vehicles have increased in popularity in recent years, the Chevrolet Bolt EV doesn’t maintain its value. It will depreciate 57% after 5 years. On average, most cars depreciate about 10 to 15% each year, so this is basically on par. However, there are some things about the Bolt EV that contribute to its poor resale value. Many buyers are hesitant about the car’s battery life as well as charging infrastructure. While these things are improving, older models are harder to sell. If you want an EV, it might be best to consider another vehicle if you have depreciation on your mind.
1. BMW 7 Series
While the BMW 7 Series is an attractive car with high-end features, it will depreciate rapidly once you pull off the lot. They typically lose about 58% of their value within 5 years. For used car buyers, the 7 Series has high repair costs and complex technology that tend to make it less attractive. There are more appealing models from other carmakers like Lexus that can offer a better resale value.
Think Twice Before You Buy
If you are in the market to buy a new car, resale value should always be a factor in your decision-making. The 10 cars listed here may be appealing to you initially. However, when you take their rapid depreciation into consideration, they’re not always the best choice. Investing in a car that holds its worth will save you money and provide peace of mind when it’s time to sell.