10 New Cars With Low Resale Value

There’s an old saying that a new car’s value drops dramatically the moment it’s driven off a dealer’s lot. There are generally no “returns” involved in a new-vehicle transaction, so for better or worse it becomes a used car immediately after a buyer signs on the proverbial dotted line. Additionally, vehicles generally depreciate the most during their first year on the road.

Depreciation is typically one of a new vehicle’s biggest long-term ownership costs, and it’s a good idea to compare projected resale/residual values to ensure you’ll get the biggest return down the road at trade-in time. Cars and trucks generally depreciate at slower or quicker rates based on a wide range of factors, including supply and demand, new vehicle pricing, incentive levels, and production volumes. Generally speaking, the more expensive the vehicle, the more important depreciation becomes, simply because there’s more money at stake. That’s not to say that a more expensive car will necessarily depreciate more, or more quickly though.

According to a study of resale values among one-year-old used cars, these ten lost the most value over the course of 12 months.

10. Chrysler 300
Loses 31.7% of its original value after one year for an average net loss of $13,351.

9. Cadillac ATS
Loses 31.8% of its original value after one year for an average net loss of $6,099.

8. Fiat 500
Loses 31.9% of its original value after one year for an average net loss of $11,106.

7. Jaguar XF
Loses 32.3% of its original value after one year for an average net loss of $19,966.

6. Lincoln MKZ / MKZ Hybrid
Loses 33.8% of its original value after one year for an average net loss of $14,177.

5. Nissan Maxima
Loses 34.0% of its original value after one year for an average net loss of $12,469.

4. Mercedes-Benz C250
Loses 34.3% of its original value after one year for an average net loss of $15,247.

3. Kia Cadenza
Loses 34.3% of its original value after one year for an average net loss of $12,940.

2. Volvo S60
Loses 34.4% of its original value after one year for an average net loss of $14,204.

1. Fiat 500L
Loses 34.6% of its original value after one year for an average net loss of $8,096.

So, while buying a brand new car may seem like a nice idea, you may want to ponder the amount of cash you will lose during that first year. Maybe buying one that is a year old would be a better investment.

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