Cars That Depreciate The Fastest
||By Anna Finger
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Depreciation is a fact of life when it comes to most things, but it tends to hit hardest in the one area we’d all really like it NOT to do so- the new automobile purchase. Sadly, the fact that a new car purchase initially loses some of it’s inherent value the moment you roll off the lot for the very first time ever is true, although in reality this has more to do with perception than reality; however, there are a whole host of other options that can affect the rate at which a vehicle loses its value, such as reviews from consumers, mechanics and dealers.
For example, if the reviews are coming in that a particular vehicle is dependable and fuel-efficient, demand for that vehicle will go up, and its value will be sustained; after all, the market sets the price, as they say.
Likewise, if a vehicle develops a reputation for being mechanically unsound or unreliable, or if there are major recalls, or if it’s known as a vile gas-guzzler, then its value will not last, and will likely plummet faster than a stone cast into the Atlantic Ocean. Even little things like a vehicle’s color or comfort ratings have to be taken into consideration, as a hard bucket seat that leaves you sore certainly won’t attract buyers on the secondary market.
According to USA Today, citing Kelly Blue Book, this list is surprisingly highlighted by three electric models, including Nissan's Leaf, which is expected to be worth only 18% of its new-car price come 2019. There are also a number of luxury cars on KBB's list, which they claim are likely to show a big drop in value because they sold for a high price in the first place. However, this is deceptive in terms of overall resale price; while the prices of luxury cars tend to fall more than more pedestrian models, they still often resell for more than mainstream cars to begin with.
Listed with the expected percentage of their original value come the year 2019, here are the top 10 cars for Worst depreciation for 2014, as according to Kelly Blue Book and USA Today:
- Nissan Leaf - 18%
- Fiat 500e - 21%
- Smart fortwo electric - 21.5%
- Jaguar XJ - 22.2%
- Volkswagen CC - 25%
- Mercedes-Benz CL-Class - 25.8%
- BMW 7 Series - 26%
- Volvo S80 - 27.3%
- Lincoln MKS - 27.5%
- Jaguar XK Series - 27.6%
Of course, the very fact that USA Today as released these figures could play into the listed model’s depreciation; after all, once someone has read this article, they may think twice about purchasing one of these vehicles; and thus, the list becomes a self-fulfilling prophesy as opposed to something that would naturally just happen. When the word spreads about these vehicles, others will take notice and the depreciation will increase, lowering the amount that the car can be eventually resold for when the time comes.
Reviews nonetheless remain an important method of judging not only the current worth of any given vehicle that you may be interested in, but for judging their potential future worth as well; this can help a consumer decided if the money they’re spending is indeed a wise investment.