10 Car Brands That Lose Value the Fastest
When buying a car, the initial price tag is only part of the financial picture. Depreciation, the rate at which a car loses value over time, is a crucial factor, especially for those who plan to sell or trade their vehicles down the road. Maintenance costs and the changing market can significantly impact resale value.
Some vehicles hold their value better than others, which can be influenced by a car’s history and brand reputation. However, certain brands are known for experiencing relatively high depreciation rates, making them less desirable on the used car market. This article explores 10 car brands that have struggled with maintaining value after five years of use.
Important Note: The depreciation values are estimates and can vary significantly based on the specific model, trim, condition, mileage, and market conditions.
Kia
While Kia’s Telluride is a standout with comparatively strong resale value, other models haven’t fared as well against competitors. The Sorento, for example, can depreciate to less than half its original value. Although Kia vehicles may maintain over half of their original price after five years, other brands retain more value.
GMC
GMC presents a mixed bag. While models like the Yukon XL lose over half of their initial value within five years, other models, like the Terrain, hold their value better. Smaller SUVs like the Terrain are more likely to hold their value over time.
Chevrolet
Chevrolet’s depreciation rates vary significantly depending on the model. While the Corvette has a healthy rate of value retention, models like the Tahoe and Suburban depreciate considerably. The Camaro’s resale value fluctuates so greatly that it is difficult to place the model with certainty.
Audi
Luxury brands like Audi tend to depreciate more than mainstream brands. Models like the Q7, A8, SQ5, and A7 typically lose around half their value within five years. The Q3 is one of the few Audi models reported to retain more of its value.
Land Rover
Land Rover, is another luxury brand that tends to depreciate quickly, and as such, most of its vehicles are high-end models, like the Range Rover. The Range Rover can lose over 60% of its value in first five years after purchase. Even models like the Discovery can be seen to lose value after a short amount of time.
Ford
Ford’s F-150 truck has mixed depreciation reports, with some sources suggesting it can lose as little as 40% of its initial cost and others stating it can lose as much as 50% within five years. The luxury division of Ford, Lincoln, suffers similar depreciation issues.
Nissan
While Nissan’s Leaf used to have a great resale value, it often comes up short when compared to consumer favorites. The Nissan Armada does not retain half of its initial value after five years. However, a few other models like the Versa and Frontier perform better in terms of value retention.
Tesla
As a luxury brand, Tesla vehicles depreciate significantly. Few models have reached five years of age, and of those that have, each of the models depreciated below 50% of original value. As hardware capabilities improve, older models lose value as a result.
Mercedes-Benz
Mercedes-Benz, like other luxury brands, experiences notable depreciation. The AMG GT, despite high resale value, loses financial value due to its initial MSRP. Models like the S-Class often depreciate over 60% of their original price.
BMW
BMW makes this list largely due to the poor value retention of its 7 Series and 5 Series models. These models lose up to 70% of their value within five years of use. Some models, like the Z4, perform better than similar luxury vehicles, but still fall short in terms of depreciation.
Understanding potential depreciation is important for any car buyer. While some brands may offer desirable features, the long-term financial implications should be seriously considered, especially if resale value is a priority.
