Whether you buy a car brand new or used, depreciation is always an issue. Depreciation is what happens when the value of a car goes down, and actually, as soon as you drive off with your brand new car, it already loses roughly 10 percent of its initial value. What’s more, it will continue to lose 10% within its first year, sometimes even more. The depreciation of a brand new vehicle continues for the next couple of years, with an average of 15%-25% loss each year and by the fifth year of ownership, it has already lost 60% of its original value. Continue reading to find out which cars are tipped to depreciate the fastest.
Smart ForTwo
Even within the first year of buying a Smart ForTwo vehicle, its value drops quite dramatically. Perhaps this is because even if it gets advertised a lot as an environmental car, its advantages basically end there. Despite the gas consumption being impressively low, it has a pretty cramped and really small interior. It also comes with two speed transmission, which is very unpleasant to many drivers. So many car buyers still opt for a mid-sized car with a far higher safety rating, even though the Smart ForTwo is advocated safe due to its small size. Within only one year after purchasing the Smart ForTwo car, its value drops by around 36 percent or about $14k less.
Smart ForTwo
Hyundai Genesis
The next car on this list is the car which depreciates the most and the fastest – the Hyundai Genesis. It was geared to compete with other luxury vehicles, but it doesn’t really have the recognized luxury vehicle brand appeal. The Genesis is priced similarly to Mercedes or Lexus models, though the Genesis’ retail value goes down by 38 percent in its first year, which is a disadvantage if you buy it new, but an advantage if you buy it used. If you are seeking luxury, consider buying a Genesis that a year old as it is priced $16K less than the original price of $52k, brand new.
Hyundai Genesis