Vehicle owners know the significance of car depreciation better than anyone else. Basically, it refers to the process by which the value of a car goes down. The moment that one drives off their new car, it immediately loses about 10 percent of the original value. When a year passes, it loses yet another 10 percent at the very least. Furthermore, car models coming from unattractive brands will experience an even bigger impact since the value can go down as much as half of its original price in only a matter of years. When the manufacturer retires the model, the value of the units can plummet. Depreciation is incredibly important for people who buy used cars.
As you can see, depreciation does not stop after the first year. For brand new cars, it will keep going on for four more years and the loss is estimated to be 15 – 25% per year. If you do the math, you can see that most vehicles lose 60% of the original price after only five years. If you are thinking of buying a car, it is important to check the market first. After all, this is the best way to ensure you are getting a good deal. There are many decent units available on the used car market and you can get a bargain when you know what to look for. Here are 35 cars with quickly plummeting retail value and here are the reasons for their decline.
Smart ForTwo
A year after buying a Smart ForTwo car, the value drops heavily. As many people know, it is an environmental car and plenty of people actually bought it for this very reason. However, the low gas consumption is pretty much the only benefit of driving the vehicle. First of all, the car comes with a two-speed transmission and this feature puts off many drivers. Next, the inside is pretty small and cramped. Even though it has passed all the necessary safety tests, most buyers still prefer a bigger vehicle with a better safety rating. After buying a Smart ForTwo vehicle, it only takes one year before it loses 36 percent or $14k of its original value.
Smart ForTwo
Hyundai Genesis
Up next, we have the Hyundai Genesis which depreciates the fastest and the most. This model was designed to competing with other luxury vehicles. Although its price comes close to cars from Mercedes and Lexus, it simply does not have the brand appeal of high-end brands. It is easy to see how it loses 38 percent of the retail value in only a year. If you want to buy a new one, you might want to reconsider. People who like luxury will get a one-year-old Genesis for cheap since it has already lost $16,000 of its $52,000 retail value.
Hyundai Genesis
