When you’re eyeing a new car, it’s easy to get caught up in the excitement of performance, cool tech, stylish looks, and all the bells and whistles. But have you thought about what happens *after* you drive it off the lot? There’s a hidden financial hit called depreciation that can really impact your wallet down the road when it’s time to sell or trade it in.
Depreciation is the silent killer of your car’s value, often costing more than gas, insurance, or repairs combined! Imagine your new car losing 20-30% of its value in the very first year and about half its worth in just five years. If you plan on selling your car, picking one that holds its value better is a smart move, otherwise, you could be looking at some serious financial losses.
So, it’s super important to know which car brands and models take the biggest dive in value. This guide uses tons of research and testing to give you the inside scoop. We’re breaking down the brands that see their market worth plummet, especially within the first three years, and why that happens, so you can make a smarter choice.
1. **Chrysler**
Chrysler seems to have a tough time holding onto its value in the used car market, which can be a real headache for sellers. With fewer models to choose from and some question marks around how reliable they are, it’s tough for them to attract buyers looking for a good deal on a used car. This means even their well-known cars lose value much faster than most others in their class.
One prime example is the Chrysler Pacifica. While a popular offering, this minivan loses approximately 37.08% of its initial value over five years, based on a well-maintained vehicle averaging 12,000 miles annually and an original cost of $47,535. After five years, owners can expect to sell it for an average of 64.84% of its original price, making it the second-worst depreciation rate of any non-luxury brand.
The Chrysler 300, a full-size sedan, mirrors this trend. It retains 64.84% of its value at the five-year mark. The depreciation accelerates further, with owners able to sell it for only 50.72% of its original price after seven years, assuming similar annual mileage. Such figures underscore the financial impact that depreciation has on Chrysler owners, often leading to greater losses than anticipated when planning for resale.
Buyers in the used car market often express wariness about the potential long-term ownership costs associated with Chrysler vehicles, including prospective repairs and maintenance. This cautious sentiment directly impacts demand for pre-owned Chrysler models, further exacerbating their depreciation rates. For consumers planning to resell their vehicle within a few years, opting for a Chrysler could unexpectedly diminish their return on investment.
2. **Fiat**
While Fiat vehicles often garner praise for their distinctive style and unique European flair, this aesthetic appeal regrettably does not translate into strong resale values. The brand’s niche market appeal, coupled with a limited dealer network, significantly hinders its performance in the secondhand market. These factors often mean Fiat vehicles remain on used car lots for longer durations compared to the average, leading to further price reductions.
Subpar reliability ratings further contribute to Fiat’s challenges in retaining value. Consumers considering a used Fiat frequently express concerns about long-term performance and the availability of parts, issues that are critical for confident ownership. These reservations directly impact buyer confidence and willingness to pay a premium for a pre-owned Fiat model, pushing down resale prices.
The Fiat 500, which once enjoyed considerable popularity for its trendy design, now faces a steep depreciation curve. Despite its initial charm and compact versatility, the model is known for shedding value rapidly. This quick decline means that the initial investment in a new Fiat 500 translates into a substantial financial loss for owners looking to sell after only a few years.
In essence, all the unique character and charm that define Fiat vehicles come at a notable cost: rapid value loss. For prospective buyers, the allure of an affordable new Fiat might be tempting, but it is critical to factor in the substantial depreciation that will likely occur. This makes careful consideration of long-term financial implications essential before committing to a purchase.
3. **Mitsubishi**
Mitsubishi used to be a popular choice, but over time, people haven’t been as impressed, and you can see that in how much their cars are worth used. Things like not introducing many new features, having older car models still around, and not seeming as safe as newer cars all add up to fewer people wanting to buy a used Mitsubishi.
While the initial sticker price of a new Mitsubishi might appear attractive, offering an accessible entry point for buyers, the brand’s vehicles typically depreciate at a faster rate than many of their rivals. This rapid depreciation means that any initial savings often evaporate quickly when the time comes to sell or trade in the vehicle, impacting the overall cost of ownership negatively. The perceived upfront savings are frequently offset by substantial losses on the backend.
Specific models exemplify this trend of rapid value decline. The Mitsubishi Mirage, often lauded for its affordability, and the Mitsubishi Outlander, a popular SUV offering, are two prominent examples where value plummets quickly after the initial purchase. These models, despite their utility, suffer from the broader brand perception and market dynamics that depress their resale potential.
For consumers, this dynamic presents a cautionary tale: while purchasing a Mitsubishi might save money initially, the subsequent depreciation means they will likely pay for that saving later in the form of a lower resale value. Understanding this trade-off is crucial for buyers to align their purchasing decisions with their financial goals, recognizing that a seemingly good deal upfront might not hold its value over the long term.
4. **Jaguar**
Jaguar vehicles, synonymous with luxury and performance, unfortunately, present a challenging proposition when it comes to resale value, often ranking among brands to avoid if depreciation is a key concern. A primary driver of this rapid value loss stems from pervasive concerns among used car buyers regarding the brand’s reliability and the notably high costs associated with maintenance and repairs. These issues are not merely perceptions but are often justifiable, leading to hesitancy in the secondhand market.
Many of Jaguar’s popular models experience some of the steepest drops in value within just a few years of ownership. For instance, the F-Pace, a stylish SUV, has seen significant depreciation. An even more striking example is the Jaguar i-Pace EV, a kilowatt-powered luxury SUV, which iSeeCars reports as suffering the biggest drop in resale value, losing a whopping 72.2% of its original MSRP over five years, amounting to an average $51,953 lost to depreciation.
This substantial depreciation rate highlights the financial challenges associated with owning a Jaguar for a shorter term. The allure of a premium badge and the increased performance or luxury features are highly sought by new car buyers. However, the used car market typically does not prioritize these traits to the same degree, leading to consistently higher depreciation for luxury models like Jaguar.
Prospective buyers are therefore advised to exercise caution. Unless there is a deep personal affinity for the car, or a firm intention to drive it until its useful life concludes, purchasing a Jaguar with the expectation of a favorable resale outcome is ill-advised. The rapid decline in value can represent a significant financial detriment, underscoring the importance of thorough research into the brand’s depreciation patterns before committing to ownership.
5. **Land Rover**
Land Rover vehicles are celebrated for their distinctive blend of luxury appointments and formidable off-road capabilities. Despite these appealing attributes, they exhibit a propensity to lose value at a faster rate than most other high-end vehicles in the market. This accelerated depreciation is a significant factor for consumers to consider, particularly those who foresee a future trade-in or resale of their premium SUV.
A key contributor to this swift depreciation lies in the fact that Land Rover SUVs are known for being expensive to repair and maintain. Furthermore, the brand has faced challenges with spotty reliability ratings, which do not assuage the concerns of potential used car buyers. These factors collectively create apprehension among second-hand purchasers, who often fear incurring substantial repair costs and grappling with complex electronic systems characteristic of the brand.
Even relatively recent Land Rover models are not immune to this trend, frequently depreciating at a rate that can be quite surprising and financially impactful for new owners. The regular version of the Range Rover, for instance, is in a particularly challenging position, with its five-year depreciation exceeding 60% of its lost value. This can be a staggering amount, potentially enough to purchase an entirely new Evoque model on its own.
Other Land Rover models also take a pretty big hit in value. The Discovery is predicted to lose almost 60% of its worth after five years, and its Sport version does only a little better, keeping about 5% more of its value. Even the tough-looking Defender depreciates around the same mark. While these aren’t as pricey as the top-tier Range Rover, losing so much value still means a significant chunk of money gone for the owner.
6. **Buick**
Buick has been trying hard to update its image, but it still struggles to connect with younger drivers, which really hurts its resale value. Because people often think of Buick as a car for older folks, it doesn’t have as much appeal in the used car market, making it tough for owners who want to sell or trade theirs in after a few years.
This trend is particularly evident in specific models. Sedans such as the LaCrosse and Regal have, in particular, suffered from sharp depreciation curves. Even Buick’s SUV offerings, despite often receiving favorable reviews, find themselves unable to entirely escape the broader brand’s depreciation challenges, reflecting a tough reality in the competitive used vehicle landscape.
In terms of hard data, Buick, according to CarEdge, unfortunately holds the distinction of having the worst value retention rate among non-luxury vehicle brands. Owners can typically expect to offload their Buick for approximately 63.15% of its original price after five years of ownership. This figure, of course, varies by model within the lineup.
For instance, the Buick Enclave experiences a depreciation of slightly over $20,000 within its first five years, allowing owners to sell it for only 60.95% of its initial cost. The Buick Encore fares a bit better, depreciating by 35% over five years, while the Buick Envision settles in the middle, retaining 63.15% of its original cost during the same period. For consumers, considering a Buick means recognizing that reselling it can feel akin to attempting to sell last year’s cutting-edge smartphone in a market obsessed with the latest technology.
7. **Lincoln**
Over recent years, Lincoln has undeniably made strides in both the quality and design of its vehicles, showcasing a commitment to a more modern luxury aesthetic. However, these improvements have regrettably not translated into a corresponding uplift in resale values. Many buyers in the secondary market continue to perceive Lincoln as an older, traditional luxury brand with limited contemporary appeal, a perception that stubbornly affects its market performance.
The competition in the luxury car market makes Lincoln’s value drop even worse. There are tons of great luxury options from brands like BMW, Audi, and Lexus, which generally hold their value much better. This intense competition means that Lincolns, such as the MKZ and Nautilus, tend to lose value quickly because fewer people are looking for them compared to their rivals.
Statistical data underscores this challenge. The MKZ, for example, is estimated to lose over 67% of its original value. The larger Navigator, while a flagship model, also sees significant depreciation, losing 54% of its value, which becomes particularly impactful given its higher Manufacturer’s Suggested Retail Price (MSRP). The Lincoln Navigator L SUV specifically is reported by iSeeCars to lose 60.3% of its MSRP, equating to a loss of $62,069.
While not all Lincoln models are as expensive as the Navigator, their resale values consistently dip below the 50% mark, making them difficult to sell for a respectable price unless ownership is limited to only a year or two. This scenario highlights a tough market reality: even brand prestige, a hallmark of luxury vehicles, does not always translate into strong financial returns on the resale front, underscoring the importance of evaluating a vehicle’s long-term financial trajectory beyond its initial appeal.
8. **Chevrolet (Sedans and Smaller Cars)**
Chevrolet occupies a unique and somewhat bifurcated position in the used car market when it comes to depreciation. While many of its truck models, particularly the popular Silverado, tend to hold their value quite well, the brand’s sedans and smaller compact cars tell a different, less optimistic story. These smaller offerings consistently face steeper and faster rates of depreciation, a crucial distinction for potential buyers to understand.
Sedans such as the Malibu, alongside compact cars like the Spark, experience rapid depreciation. This swift decline is primarily driven by a fiercely competitive market segment and a noticeable waning interest among consumers for non-SUV models. In the secondhand market, buyers are often inclined to bypass these Chevrolet models in favor of alternatives perceived as more reliable, stylish, or simply better suited to their needs.
Even the attractive incentives often offered on new Chevrolet vehicles are frequently insufficient to offset the significant financial hit owners can expect to take at trade-in time. The market’s collective preference speaks volumes, indicating that Chevrolet’s lower-tier passenger car models are particularly susceptible to rapid value loss, diminishing the overall return on investment for their owners.
For example, while the larger and more expensive Tahoe and Suburban models also lose a considerable portion of their original cost, the financial impact is often more acutely felt in the context of their initial high price tags. Conversely, the Spark, though surprisingly cheap, is one model where the depreciation blow might be less severe in absolute terms. However, buyers should be prepared for a substantial financial loss unless they opt for the brand’s more resilient truck or select sports car models like the Corvette, which consistently maintain higher value retention, often holding around 65% of their original value, with coupe models retaining over 70%.
9. **Nissan**
Nissan’s standing in the automotive market has seen its reputation for reliability take a noticeable hit in recent years, a decline that is regrettably mirrored in its resale values. This shift in perception has tangible financial consequences for owners, making the brand a less attractive option for those prioritizing strong value retention.
Several Nissan models, including the Altima and Sentra, frequently appear on lists detailing vehicles with significant depreciation. A contributing factor to this trend often cited by experts and consumers alike is concern over the brand’s Continuously Variable Transmissions (CVT). Furthermore, Nissan has faced challenges in keeping pace with its competitors in terms of both innovation and contemporary design, leading to a diminished appeal.
The widespread wariness among buyers regarding the long-term ownership prospects of Nissan vehicles directly impacts resale demand. While it is relatively easy to find numerous Nissan models on used car lots, it often proves significantly more challenging for owners to sell them for a favorable return. This dynamic creates a difficult market for sellers, further accelerating depreciation rates.
Specific data further illustrates these points. The Nissan Leaf EV, for example, has been reported with a significant depreciation, losing 64.1% of its MSRP over five years, equating to an $18,043 loss. Within three years, its depreciation can range from 49% (approximately $19,000) to as high as 61% of its original price, putting it in a difficult position compared to cars driven by the average consumer. Similarly, the Nissan Armada SUV is slated to lose 60.0% of its value ($33,914) over five years. While some Nissan models, like the Versa and Frontier, show better value retention (consistently keeping over 60% and at least 59% of their original value, respectively), the brand’s overall performance in depreciation remains a critical consideration for prospective buyers.
10. **Mini**
Mini cars are famous for their cool, quirky style and fun driving experience, which sets them apart from other cars. However, even with these great qualities, these small cars tend to lose their value faster than many people expect, so they might not be the best pick if you’re really concerned about keeping your car’s worth over time.
The brand’s inherently niche market appeal, combined with a reputation for potentially costly repairs and the inherent limitations of their compact interior space, acts as a significant deterrent for many used car buyers. While Minis are celebrated for their character and distinctive styling, they are not typically lauded for their longevity or their ability to maintain substantial value over time, factors that invariably weigh down their resale prospects.
Even the most popular models within the Mini lineup, such as the iconic Mini Cooper, struggle to hold their value effectively after only a few years of ownership. This rapid decline means that the initial investment, while offering a unique driving experience, can translate into a considerable financial loss when the time comes to sell or trade in the vehicle. The charm and distinctiveness of a Mini, therefore, come with a notable financial caveat.
For consumers, the clear takeaway is that while the initial allure of a Mini might be strong, the financial reality of its depreciation warrants careful consideration. As the market tends to demonstrate, embracing cuteness and character in a vehicle doesn’t always align with making the most cost-effective long-term financial decision, particularly if future resale value is a priority in your car-buying strategy.
Car Model Information: 2013 MINI Coupe Cooper S
Sp: uk
Caption: 1959 Morris Mini-Minor (first one built)
Name: Mini
Aka: Austin 850,Rover Mini,Austin Cooper,Austin Mini,Austin Partner,Austin Seven,Innocenti Mini,Leyland Mini,Morris 850,Morris Mascot,Morris Mini Minor,Riley Elf,Wolseley 1000 (South Africa),Wolseley Hornet
Layout: Front-engine, front-wheel-drive layout
Manufacturer: British Motor Corporation,British Leyland,Rover Group
Production: 1959–2000 (5.38 million)
Class: City car
BodyStyle: sedan (car),convertible,Station wagon,sedan delivery,coupe utility
Engine: BMC A-series engine,Straight-four engine
Designer: Alec Issigonis,John Sheppard (car designer)
Transmission: 4-speed manual,AP automatic transmission,5-speed manual (optional extra on some later models)
Length: cvt,cvt,cvt
Width: cvt
Height: cvt
Weight: cvt
Wheelbase: cvt,cvt
Related: Mini Moke,Austin Metro,Innocenti Mini,Mini Wildgoose,Mini Marcos
Successor: Austin Metro,Mini Hatch
Assembly: Panmure, New Zealand
Categories: 1960s cars, 1970s cars, 1980s cars, 1990s cars, 2000s cars
Summary: The Mini is a very small two-door, four-seat car, produced for four decades over a single generation, with many names and variants, by the British Motor Corporation (BMC) and its successors British Leyland and the Rover Group, and finally (briefly) under BMW ownership. Minis were built as fastbacks, estates, convertibles, and various other body styles. Minus a brief 1990s hiatus, from 1959 into 2000, an estimated 5.38 million of all variations combined were built, and the Mini’s engines also powered another 2 million Mini Metros, though the Mini eventually outlasted its successor.
Initially, the Mini was marketed under the Austin and Morris names, as the Austin Seven and Morris Mini-Minor; the Austin Seven was renamed Austin Mini in 1962 and Mini became a marque in its own right in 1969. Retrospectively, the car is known as the “Classic Mini” to distinguish it from the modern MINI family of vehicles produced since 2001 by German carmaker BMW, who took ownership of the Mini name following the sale of Rover Group in 2000.
This distinctive two-door car was designed for BMC by Sir Alec Issigonis. Its space-saving transverse engine and front-wheel drive layout – allowing 80% of the area of the car’s floorpan to be used for passengers and luggage – influenced a generation of car makers. The front-wheel-drive, transverse-engine layout were used in many other “supermini” style car designs such as Honda N360 (1967), Nissan Cherry (1970), and Fiat 127 (1971). The layout was also adapted for larger subcompact designs. In 1999, the Mini was voted the second-most influential car of the 20th century, behind the Ford Model T, and ahead of the Citroën DS and Volkswagen Beetle. It is also considered an icon of 1960s British popular culture.
The Mini Mark I had three major UK updates: the Mark II, the Clubman, and the Mark III. Within these was a series of variations, including an estate car, a pick-up, a van, and the Mini Moke, a jeep-like buggy. The performance versions, the Mini Cooper and Cooper “S”, were successful as both race and rally cars, winning the Monte Carlo Rally in 1964, 1965, and 1967. The Mini was manufactured in England at the Longbridge plant in Birmingham located next to BMC’s headquarters and at the former Morris Motors plant at Cowley, as well as in Australia (Victoria Park/Zetland BMC Australia factory) and later also in Spain (Authi), Belgium, Italy (Innocenti, as the Innocenti Mini), Chile, Malta, Portugal, South Africa, Uruguay, Venezuela, and Yugoslavia (IMV). In 1980, British Leyland launched the Mini’s follow-up, the Austin Metro, however the Mini outlasted it and continued to be produced at Longbridge until October 2000.
Get more information about: Mini
Buying a high-performing used car >>>
Brand: Mini Model: Mini
Price: $11,875 Mileage: 78,956 mi.
Looking at depreciation when you buy a new car is a super smart money move, that’s for sure. As we’ve seen, the price tag you see at the dealership is just part of the story. Knowing which cars lose value the fastest helps you make a purchase that fits your budget now and in the future. By checking out how depreciation works, thinking about upkeep costs, and seeing what people actually want to buy, you can protect your money and make sure your next car is a wise choice that you’ll enjoy.
