Cars That Depreciate The Most In The First Year of Ownership

For the most part, cars are almost never an investment (Here’s an exception), but are almost always a necessity. You just cannot get around in most cities and towns without a good running car or truck because America does not invest in the type of mass transit infrastructure you will find in Europe that makes car ownership much less of a necessity.

To add insult to injury, car buyers are often shocked at just how much their new vehicle depreciates shortly after driving off of the car lot. But how much and how quickly?

In general, new cars lose around 20% of their value in the first year, and 60% of their value in five years. Even if you put the car up for sale the day after buying it brand new, the market value of the car drops significantly because it is now a “used car” and buyers expect to pay less for a used car over a new―regardless of how “new” it is.

Why Do Cars Lose So Much Value?

This loss of value is a normal part of car ownership and primarily is due to Depreciation―a calculated measure of how much value your car loses over time due to wear and tear, age, and mileage…and other factors.

Related article: Consumer Reports Rates Tesla Number 1 for This Car Ownership Benefit

Do All Cars Depreciate the Same?

Aside from being a used car, its value is based on factors such as:

• The make and model: The more popular a model is, the higher the market demand and its selling price.
• It’s Accident History: Accident-free vehicles command a significantly higher price than one that has been in a minor fender bender or even a bumper bump. Smart used car shoppers use a car’s VIN to discover any accidents reported.
• Its Mileage and Maintenance History/Condition: The fewer miles a car has, the more value it holds. However, equally important is the physical condition of the vehicle and whether or not you can show it has been properly maintained.
• The Car Maker’s Reputation: Vehicles with a strong reliability reputation such as Toyotas tend to keep their value longer than other makes and models.
• Current Economic Situation: Depending on what is going on with the economy, used car values fluctuate in times of a pandemic, recession, supply chain problems, etc.

However, the above is just a general guideline of expectations. In truth, cars do not depreciate equally and what some owners discover too late is that the car they bought could depreciate between $1,300 to $65,000 depending on the make and model.

The Worst and Best Car Models for Depreciation

According to a recent Car Help Corner YouTube channel episode, based on recent data from the iSee Cars website, these cars are absolutely the worst when it comes to how poorly they hold their value the minute you drive off of the dealership lot.

Follow along with the host as he reveals which models to avoid and those to buy if their depreciation value might be important to you within a few years of buying a new car.

In case you do not have time to watch the video, a summary of the makes and models is provided below the video.

Worst Cars That Lose The Most Value In The First Year

The Biggest Depreciation (First Year) Car Models Below $30,000

• Mini Cooper Hardtop: Loses 26.5% of its value―approximately $10,000.
• Chevrolet Bolt: Loses 28% of its value―approximately $9,000.
• Audi A3: Loses 28.7% of its value―approximately $10,000.
• Nissan Murano: 32% of its value―approximately $14,000.
• Nissan Leaf: 45.7% of its value― approximately $16,000.

The Least Depreciation (First Year) Car Models Below $30,000

• Nissan Sentra: 11.1% of its value― approximately $2.6,00.
• Toyota Corolla Hatchback: 7.9% of its value― approximately $2,100.
• Nisan Versa: 7.1% of its value― approximately $1,500.
• Honda Civic: 5.5% of its value― approximately $1,600.
• Toyota Corolla Hybrid: 5.0% of its value― approximately $1,300.

The Biggest Depreciation (First Year) Car Models $30,000 to $40,000

• Alpha Romeo Stelvio: Loses 32.3% of its value―approximately $17,500.
• Volkswagen iD4: Loses 32.9% of its value―approximately $15,000.
• Hyundai Ioniq 5: Loses 32.9% of its value―approximately $17,000.
• KIA EV6: Loses 33.3% of its value―approximately $18,000.
• Alpha Romeo Giulia: Loses 33.4% of its value―approximately $16,000.

The Least Depreciation (First Year) Car Models $30,000 to $40.000

• Honda CRV Hybrid: Loses 7.5% of its value―approximately $3,000.
• KIA Sportage Hybrid: Loses 5.9% of its value―approximately $2,000.
• Toyota Rav4 Hybrid: Loses 5.3% of its value―approximately $2,100.
• Ford Maverick Hybrid: Loses 4.4% of its value―approximately $1,500.
• Ford Maverick: Loses 4.1% of its value―approximately $1,400.

The Biggest Depreciation (First Year) Car Models $40,000 to $50,000

• Mercedes GLC: Loses 27.2% of its value―approximately $16,000.
• Lincoln Nautilus: Loses 27.2% of its value―approximately $15,000.
• Jeep Wrangler Hybrid: Loses 27.3% of its value―approximately $17,000.
• Audi Q5 Sportback: Loses 27.9% of its value―approximately $17,000.
• Dodge Durango: Loses 30.8% of its value―approximately $19,000.

The Least Depreciation (First Year) Car Models $40,000 to $50,000

• KIA Telluride: Loses 11.3% of its value―approximately $5,300.
• Toyota Tacoma: Loses 10.24% of its value―approximately $4,700.
• KIA Carnival: Loses 9.6% of its value―approximately $4,000.
• Chevy Traverse: Loses 8.5% of its value―approximately $3,700.
• Tesla Model Y: Loses 8.3% of its value―approximately $3,800.

The Biggest Depreciation (First Year) Car Models $50,000 to $60,000

• Infinity QX80: Loses 28.8% of its value―approximately $24,000.
• Mercedes-Benz S-Class: Loses 31.5% of its value―approximately $46,000.
• BMW 7-Series: Loses 30.0% of its value―approximately $36,000.
• Jaguar F-Pace: Loses 35.4% of its value―approximately $28,000.
• Mercedes-Benz EQS: Loses 47.8% of its value―approximately $65,000.

For additional articles related to new and used car value, here are a few for your consideration:

• Calculate the Toyota RAV4 Hybrid Cost Against the Non-Hybrid RAV4
• Mechanic Helps Car Buyers Find The True Value of a Used Car

Timothy Boyer is an automotive reporter based in Cincinnati. Experienced with early car restorations, he regularly restores older vehicles with engine modifications for improved performance. Follow Tim on Twitter at @TimBoyerWrites  and Facebook for daily news and topics related to new and used cars and trucks.

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