Car Depreciation is a source of disarray when buying a new or used vehicle. All cars are losing value, and this process begins abruptly. The average new car loses approximately 10 percent of its value as soon as it leaves the dealer’s car park.
Vehicles from an unappealing brand or with few options will feel the biggest impact, depreciating as much as half their purchase price in the first one or two years. If the manufacturer is retiring a vehicle, then the value can drop like a lead weight. This loss in value is relevant to any used car buyer.
Moreover, this depreciation does not necessarily slow down after the first year. New cars continue to lose value over the next four years, with an average loss of 15/25 percent each year. After five years, the average car lost 60 percent of its commercial value.
Vehicles with an unattractive brand or few options will experience the greatest impact, with a decline in value of up to half of their purchase price in the first two years.
If you are looking to buy a vehicle soon, it’s worth knowing the market. Here is a list of vehicles whose value is currently falling faster and why.
50 – Hyundai Genesis
The Hyundai Genesis is the first of our list of vehicles that are depreciating the most and the fastest. The Genesis competes with other luxury cars, but the brand lacks notoriety to make it an established luxury vehicle. Its price is comparable to the Mercedes or Lexus models, but it loses 38 percent of its purchase value during the first 12 months.
It’s a setback if you buy it new, but can be considered a benefit if you prefer buying used. Car buyers looking for luxury can buy a 1-year-old Genesis for $16k less than a brand new one (which starts at around $52k).
Find the list of cars depreciating the most in the following pages!