Car depreciation is a given for most vehicles purchases. Unless it’s classic, limited edition, or other investment grade, chances are it’s only going to decrease in value from the time you buy it. However, not all cars depreciate equally, and some hold their value reasonably well while others can plummet in value in no time at all.
The average new car loses approximately 10 percent of its value as soon as it’s driven off the dealer’s lot. At the end of the first year, the car will have lost an average 10 percent more of it’s original value. Often the loss is much more than that.
Vehicles from an unappealing brand or an unpopular model can depreciate as much as half their purchase price in the first one or two years. If the manufacturer is retiring a vehicle, the value can drop like a lead weight. New cars continue to depreciate steeply for at least four more years, averaging a value loss of 15-25 percent each year. By the time it is five years old, the average car has lost 60 percent of its retail value.
If you’re looking to purchase a vehicle soon, it pays to know the market. Here are 50 vehicles that are currently losing their value fast.
1. Hyundai Genesis
The Hyundai Genesis is at the top of the list of vehicles that depreciate the most from their date of first purchase. The Genesis competes with other luxury cars, but lacks the brand appeal of an established luxury manufacturer. Its price tag is comparable to Mercedes or Lexus, but it will lose 38% of its purchase value within the first 12 months. This is a drawback if buying brand new, but could be considered a benefit if buying used. Car buyers looking for luxury can buy a 1-year-old Genesis for two thirds the price they would pay for a new one.