If you buy a car band new or used, one cause for dismay is depreciation; when a car’s value drops. As soon as you drive off your brand new car, its original value has already gone down about 10 percent and after its first year, it will lose another 10%, and sometimes much more. Your brand new vehicle continues to depreciate for the next couple of years (15%-25% loss in a year on average) and by its fifth year, its value will have gone down to 40% of the initial amount you had to shell out to buy the car. Keep reading to find out which cars lose their value the quickest.
Smart ForTwo
The value a Smart ForTwo vehicle drops dramatically in the first 12 months alone. This is most likely because despite it being heavily advertised as an environmental car, its benefits ends there. Its gas consumption is remarkably low, the inside is very small and cramped, it has two-speed transmission, which is really unpleasant to many drivers and despite it being advocated safe due to its small size, many car buyers would like a mid-sized vehicle with a safety rating that is much higher. In just a year after the the Smart ForTwo car is purchased, it’s worth roughly 36 percent less or about $14k less.
Smart ForTwo
Hyundai Genesis
Up next is the Hyundai Genesis, which depreciates the most as well as the fastest. The Genesis competes with other luxury cars, but it lacks the brand appeal that a recognized luxury vehicle has. This car’s price is close to Mercedes or Lexus models, but it loses 38% of the retail value in its first year alone, which is a drawback if you’re purchasing it new or a benefit if you buy it used. Car buyers looking for luxury can get a one-year-old Genesis for $16k less than the $52k original price (brand new).
Hyundai Genesis