The 10 car brands that crash in value the fastest
The 10 car brands whose value is falling the fastest
People say buying a car is a "big investment". However, unlike most investments, the value of cars doesn't increase over time.
In fact, your new car loses value the moment you drive it out of the parking lot and it won't start up again until one day the model becomes a collector's item.
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However, not all cars are written off equally. A recent study by iSeeCars.com found that some car brands depreciate more than twice as quickly as others.
The study analyzed more than 8.2 million new and used cars from the 2015 model year, finding the difference between the average sticker price and the average price for which each model was sold in 2020, adjusted for inflation.
Here are the 10 car brands that have devalued the most:
Average 5-year depreciation: 61.2%
Bulky Buicks have a reputation for handling like "boats," but their value seems to be plummeting like a rock.
Buick's classic sedans aren't necessarily why the brand made this list, however. The two Buick models that are losing value the fastest are both SUVs.
The Enclave, Buick's midsize sedan, had an average sticker price of $ 52,324 but now retails for just $ 19,217 after five years of ownership.
Buick's small SUV, the Encore, is also rapidly losing value despite the lower sticker price. Five years later, a car bought for $ 29,409 will bring you only $ 12,816.
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Average 5-year depreciation: 61.3%
Cadillac is one of America's oldest auto companies, and its sleek, smooth rides are popular with celebrities and retirees alike.
However, caddies don't hold up nearly as well as your great-uncle would expect, especially when it comes to SUVs.
A Cadillac Escalade ESV, originally priced at $ 96,170, will bring $ 35,260 on the road to the resale market for five years, a difference of $ 60,910.
And the standard escalade is written off almost as quickly. In five years, the retail value fell 60.1% from $ 91,891 to $ 36,622.
3. Land Rover
Average 5 year depreciation: 61.4%
Whether you're in town or jumping through the woods, Land Rovers are sure to make a standout presence.
Unfortunately, the British brand's all-wheel drive giants do not fetch a high price on the resale market.
The average sticker price of a Range Rover - Land Rover's Luxury SUV - was $ 122,452, but after five years of ownership, a used one will bring you only $ 45,390. That's a difference of $ 77,062.
The smaller (and slightly cheaper) model of the Range Rover, the Range Rover Sport, also loses a large chunk of its value after five years, costing 61.3% less than its original sticker price of $ 94,907.
Average 5-year depreciation: 61.9%
Mercedes-Benz is one of the best-known luxury brands out there, and you can be sure that any car with its three-pronged logo will turn heads.
Unfortunately, heads turn in the opposite direction when trying to get a high price on your used Mercedes.
Two of the manufacturer's luxury sedans have put iSeeCars on the list of the 10 models that are the fastest to devalue.
The E-Class had an average sticker price of $ 70,261 but lost 69% of its value and is now selling for just $ 21,804. The even more expensive S-Class was $ 119,892 new but only gets you $ 39,452 if you try to sell it today - a difference of $ 80,440.
Luxury cars often come with more expensive insurance premiums, and some Americans pay at least $ 1,100 for auto insurance. Imagine how much it costs to insure a Mercedes.
Average 5-year depreciation: 63.3%
Infiniti is known for combining the solid safety and reliability features of its parent company, Nissan, with the classy interior and eye-catching style of a luxury brand.
However, don't expect your Infiniti's value to last forever. Both the limousines and the SUVs of the manufacturer lose extremely strong in value.
For example, Infiniti's midsize luxury SUV - the QX60 - had an average sticker price of $ 56,453, but after five years its resale value has dropped 64.7% to just $ 19,954.
Even Infiniti's cheaper options are rapidly depreciating in value. The compact Q50 has depreciated 62.7% in five years, losing $ 29,418 of its original value.
Average 5-year depreciation: 63.6%
Lincoln - a division of Ford Motor Company - has been around for a century and describes itself as "American luxury".
While Lincoln's offer a high-end ride at a reasonable price, on average they lose more in value than any other American brand.
Lincoln's midsize luxury sedan, the MKZ, sold new for $ 45,784 and is now worth $ 15,068. That is a difference of $ 30,716.
One reason sedans like the MKZ are depreciating so quickly is because of changing consumer tastes, explains Karl Brauer, Executive Analyst at iSeeCars.
“The popularity of sedans has declined, so the price has to drop significantly in order to make these vehicles desirable in the secondary market,” says Brauer.
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Average 5-year depreciation: 64.6%
Audis are known for their slim bodies and stylish interiors, but the beauty always fades with time.
The luxury sedans and SUVs of the Bavarian automaker lose value quickly and many Audi owners are out of luck when it comes to recovering their investment.
An A6 - Audi's luxury midsize sedan - originally priced at $ 62,959 will bring you just $ 19,490 after five years on the road, which is a difference of $ 43,469.
Even the cheaper models from Audi quickly lose their charm. The compact A4 sports sedan, which could be bought new for around $ 45,950, has lost nearly $ 29,600 in value over five years.
Average 5-year depreciation: 66.1%
BMW wants to offer the "ultimate driving machine". While driving around in a Beemer, this can bring a smile to your face. However, you won't shine when you see the resale value.
Although the German car manufacturer is only in third place overall, the two vehicles whose value is falling the most are both BMWs, according to iSeeCars.
The 7 Series, BMW's super-luxury sedan, sold for an exorbitant $ 101,546 and is worth only $ 27,860 five years later - a loss of 72.6%.
“Expensive luxury vehicles like the BMW 7 Series lose value because they contain expensive functions and technologies that are not appreciated by used car buyers,” adds Brauer.
However, the cheaper models from BMW don't do much better. The compact 3-series sedan loses more than 65% of its original sticker price within five years.
Average 5 year depreciation: 66.4%
Sweden's leading car brand is famous for its first-class safety features. However, don't expect the manufacturer to protect your investment.
While Volvos are quite affordable compared to some of the other brands on this list, their sedans and SUVs are both valuable.
For example, a Volvo S60 sedan that was bought five years ago for $ 44,864 will only sell for $ 14,430 in 2020, and a Volvo XC60 compact SUV that originally cost $ 48,426 is now priced at 16,662 U.S. dollar.
Both models lost over 65% of their value.
Average 5-year depreciation: 69.0%
There's no question that a Maserati is a status symbol. The Italian luxury brand has been name-checked by everyone from Post Malone to Ted Nugent.
And while hoisting a Maserati is sure to drop some jaws, you can bet that the resale value of your ride will drop even further. According to iSeeCars results, the brand has devalued more than any other in the past five years.
Take the Maserati Ghibli, for example. With an original sticker price of $ 88,790, the Ghibli sells for just $ 27,501 after five years - a difference of $ 61,289. Uff.
Brauer explains that the exclusivity of a Maserati is an important factor in its depreciation.
“They are manufactured in small numbers, which adds to their high maintenance costs, as parts are often not immediately available,” says Brauer. "They're not very reliable either."
This is how you keep the value of your car
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Depreciation is an inevitable part of vehicle ownership. When you buy a car, you can expect its value to decline more every year. However, Brauer points out a few steps you can take to dodge the biggest blow.
“The most significant depreciation occurs in the first year of ownership, when the average car loses 20% of its value,” says Brauer. "Buying a car that is only a year old saves consumers money on depreciation and drastically cuts the cost of the vehicle."
He also notes that keeping your car in good condition improves your chances of getting a fair price in the resale market.
“If you maintain your car regularly and avoid damage, your car is worth more,” says Brauer.
You may also want to look for savings elsewhere to make up for your losses. If you're looking for a cheaper price on your car insurance - some experts recommend checking every six months - you can potentially save more than $ 1,000 a year.
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