The great strength of American capitalism is also its great weakness, namely, its extremely high weapons productivity. A number of factors have produced increases in productivity, like, the mechanization of the production process that got under way in England as early as the 18th century. In the early 20th century, then, American industrialists made a contribution in the form of automatiion. ..Amor Patriae
Friday, September 6, 2019
50 Cars that are Plummeting in Value
50. Smart ForTwo
The Smart ForTwo is another vehicle whose value free falls in the first year of ownership. This is likely because, although it gets plenty of publicity for being a green car, the benefits of driving it seem to end there. The gas mileage is formidable but the interior is claustrophobic and cramped, the two-speed transmission is obnoxious to most drivers and though it’s touted as safe for its compact size, most car buyers would seem to prefer a more highly safety-rated, mid-sized competitor. The Smart ForTwo is worth 36 percent less than what its owner paid for it (approximately $14k), after only one year.
The Hyundai Genesis is at the top of the list of vehicles that depreciate the most and quickest. The Genesis competes with other luxury cars, but lacks the brand appeal of an established luxury vehicle. Its price tag is comparable to Mercedes or Lexus models, but it will lose 38 percent of its purchase value within the first 12 months. This is a drawback if buying brand new, but could be considered a benefit if 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).
The Nissan Leaf is Nissan’s great success in the realm of electric vehicles. Yet it suffers one of the worst drops in value of any vehicle on this list. The abundance of leased Leafs hurts its resale value, as does the nearly $7.5k in tax credits, and more in dealer incentives or discounts. All of these mark offs from the total cost filter down when the car is resold.
Introduced as a sporty alternative to more square and practical Toyota and Honda models, the Rogue appealed to loyal Nissan owners. However, after a redesign, the value of this vehicle slipped more than 5 percent. Like the Nissan Leaf, the Rogue is just that, a rogue on this list, with an above-average depreciation rate.
The Mini Cooper is an attractive compact vehicle with a loyal band of followers but it depreciates more than any other model in its class. Last year the typical cost of a brand new Mini Cooper was $20k. For any owners with a 2015 Mini sitting in their garage, it’s now worth 29.3 percent less. When considering a car like this, residual value matters because depreciation is the largest single cost of owning a car
The rise in gas prices has halted for the most part and the appeal of gas-guzzling SUVs has returned. The new redesigned GMC Yukon may have suffered in its redesign, or else new car buyers are doing the 5-year cost-to-own research as seeing that a brand new Yukon ($47k) will cost them upwards of $70k just to own for the first five years. Whatever the reason, these SUVs are depreciating nearly 33 percent in just the first year.
The 2015 Chevy Express is not a vehicle many of us will own, as it is a cargo van. However, if you are a business owner or require this type of vehicle, it is important to know the cost to own is nearly double the cost to purchase and the depreciation in the first year of ownership is well above average at 37 percent. This is most likely due to the new model that’s practically identical to its predecessors, with few upgrades available and a limited buying audience.
Chevy’s Impala is a well-known and popular car. So why does it depreciate so much so fast? For one, it’s part of Chevy’s fleet sales lineup. This means thousands of these cars face the destiny of being company cars or rentals. In short: they are oversupplied. There is nothing unique, rare or irresistibly attractive about them and with the amount of Impalas on the market (and the demand for midsize sedans shrinking,) the value of this popular Chevy model has plummeted. Last year’s model (which started at $27k) is worth 33.5 percent less today.
The Volkswagen Beetle has a depreciation rate of 37 percent in its first year. What’s more is that Volkswagen’s diesel models have lost their [MSRP and resale] value at a much swifter rate than their gasoline alternatives since reports came to light that the company had included a software cheat in the vehicles to beat emissions tests. The Beetle is among models recorded as having depreciation rate more than double of the comparable gasoline models since September 18, 2015. Last year’s Beetle could be next year’s best buy, though.
The Lincoln MKS is soon facing obsolescence. It has been a slow-selling model that appealed to those car buyers seeking luxury under $50k. Because it was never a standout top-seller, it’s now worth 30.4 percent less than what its owner paid for it last year. Like the Genesis, this is a thorn in the side of the person buying an MKS brand new, but a used car buyer’s best-case scenario.
The Kia Optima is a vehicle that has equal number of pros and cons. It has a sharp design, roomy cabin, many upgradable features and a reliable engine. It also has a disappointing fuel efficiency rating and 35 percent depreciation rate from last year to this. Owners of a brand new Optima may find the grass greener on the other side with comparable but value-retaining Ford and Honda models.
The Kia Cadenza is another top contender in the list of swiftly depreciating vehicles. At a rate of 38 percent, this car is a bargain to buy lightly used, and difficulty to justify buying brand new. Kia’s pseudo-luxury large sedan has yet to win over buyers. It’s also not the only Kia on this list.
Chevy’s sporty, sharp Camaro is reported as losing 39 percent of its value in the first year. This is one of highest depreciation rates on this list. The average 5-year total cost to own a 2015 is about $40k. It’s $23.7k off the lot and loses a little more than $8k in the first year of ownership. This is an American- made sports car, like the Mustang, SS or Corvette, which has a following of worshippers that lines of luxury cars also have. For this reason, perhaps, the Camaro depreciates like a luxury car.
The car that reintroduced Buick as a premium manufacturer in compact sedan class was the Regal, which was basically the European Opel Insignia in American trim and Buick badge on the front. With a nice selection of optional extras, wide range of powerful turbocharged engines and drivetrain options, Regal soon established itself in its segment as one of best choices for an affordable luxury sedan. With the original MSRP price of just under $30,000, you will be amazed to know that you can find couple-year-old examples for just over $10,000 which is pretty cheap. Of course, the new model will be available from next year so that also affects the price.
The Lancer is par for the course on this list with its depreciation rate at 35 percent. This is a make and model that markets itself as affordable but loses a huge percentage of its worth in the first year. The 5- year cost to own shows how it stands up to other vehicles in the long run. For example, a $17.5k Mitsubishi Lancer costs roughly $4k less than the base model MINI Cooper (also featured on this list). But when a side-by-side comparison is made between both vehicle’s expected ownership costs for five years, the Lancer costs $5k more than the Cooper does. This is something to consider whether buying a Lancer new or used.
The Jaguar XK, like the Lincoln MKS above, is now an obsolete model. Jaguar has replaced it with the newer, flashier F-type model. Last year’s Jaguar XKs were driven off the dealership lot for around $84.5k. They’ve since lost just under 30 percent of that value, depreciating 29.2 percent in the last 12 months. This make and model of Jaguar would be suited on a list of cars that are best purchased used.
Cars.com shows the total 5-year cost to own a 2015 Dodge Charger at just over $41k. The original total cost of this vehicle was $26k, and within the first year, its value will depreciate more than $8k (upwards of 45 percent). Why is this? Most models are unremarkable, with no noteworthy add-on features. The depreciation rate could also be due to the more popular, attractive and upgradable competitors on the market.
Lexus remains a carmaker with a valued reputation. Lexus owners tend to gravitate toward smooth, sleek design, luxury, speed and handling that excels. The ES 350 is perhaps Lexus’ more ‘boring’ model, and looks average and unremarkable on the outside. This could be why it depreciates $9.1k in its first year of ownership.
The mid-size Sonata is Hyundai`s sedan offering that features mainstream design, decent performance, and power as well as spacious interior. Over the years it became popular due to the fact it is a solid and reliable family transport. The base price is around $23,000 and it can go all the way to $30,000, but you can find a nice 2011 model for as little as $8,000 which is a big price drop.
The original pony car, now in its 6th generation was always a performance bargain. If you look at the original prices and value on the used car market, you will see that the Mustang GT with its V8 engine and great performance is still the best bang for your buck in terms of power and looks. Since the current generation is very hot at the moment, everybody forgot about the previous model which was a great modern muscle car and featured cool retro design and a fabulous 5.0-liter V8. The base price was around $35,000 but today you can find a nice example for just over $10,000 and enjoy burning some rubber.
Kia’s brave attempt to present a full-size luxury sedan brought us the K900. This is the Korean competitor to the BMW 7-Series or Mercedes S-Class which means that K900 has all imaginable luxury features, creature comforts and a lineup of powerful engines. Also, it means that K900 had a hefty price tag. As with all luxury cars, it will depreciate significantly. The K900 was introduced in late 2014 as a2015 model and it came equipped with a 420 hp engine and high level of luxury as standard. The base price was close to $60,000 which was still cheaper than the competitors but definitely a lot of money for a Kia. Today, you can find well-cared and two-year-old examples for just above $30,000 which is pretty cheap for a big, premium model like the K900.
Cadillac’s CTS is a well-designed, solid-engineered luxury sedan that is reliable road warrior and mainstay in Cadillac’s lineup. It does, however, also face the depreciation rate of other luxury vehicles and is higher than most, coming in at 36.9 percent. This means a 2015 CTS which brand new cost around $45k is now worth a little more than half that amount.
Mercedes introduced R-Class hoping it would conquer a market that wasn’t there, an expensive luxury crossover segment. At least, the market wasn’t big enough to keep R-Class afloat and after a couple years, the big S-Class based minivan was discontinued. However, the buyers
Fiat’s 500 L promised a lot when it was announced in 2014 but managed to deliver very little which affected the popularity as well as the price on the used car market. It is a spacious people carrier with decent trunk but with diminutive engines and less than ideal performance. It is easy to drive and has great visibility, but the rivals come with more power, better performance and they are more fun to drive. With the base price of just over $20,000, three-year-old 500 L will cost you less than $14,000 today. This is pretty significant depreciation level for a three-year-old vehicle.will remember it as an extremely comfortable model with luxury features and powerful engines. The prices for the R-Class started at over $50,000 but now, on the used car market, nice examples change hands for as little as $19,000. So if you are looking for comfortable and luxury transport for your family, this could be it.
Introduced in 2013, XTS was a mid-size Cadillac with loads of luxury options and elegant design. However, it kind of missed its mark and it didn`t have great driving dynamics like the ATS or CTS and it didn`t have the opulence of the bigger CT6. That is why the XTS is kind of a middle child of Cadillac model lineup. The prices started at almost $45,000 for a 304 hp version with front-wheel drive which is a significant sum. But, today you can find well-kept and low mileage examples for half of the original price which makes XTS one of best deals in mid-size luxury sedan class.
The Maxima was always good value for your money. Big, comfortable, powerful and nicely equipped, the Maxima could be considered a luxury car. In 2016, a new generation was introduced with great new styling, technology, and a new 300 hp V6 engine. The base price for the new model was just over $32,000 and today, a year and a half after the introduction, you can buy second-hand examples for just over $20,000 which means that this model depreciated around $10,000 in less than two years. It also means that you`ll be getting basically a brand new car, still under factory warranty for two thirds of the original sticker price. Definitely, Maxima is worth considering.
As any luxury manufacturer, Jaguar is also hit with big depreciation levels of its models. This is why the mid-sized, luxury sedan in form of the XF is very cheap on the second hand market. When it was first released in 2009, the XF had a base price of $50,000 but most models were sold for around $60,000 after the buyers ordered them with a few options. The base engine was the 300 hp V6, but you also could get a 420 hp V8 in performance version. However, today, you can find 2009/2010 models in good condition and with full service history for less than $15,000 which is a steal considering the XF comes with full leather interior, powerful engines, great design and advanced safety features.
The VW Passat is not a luxury car, but a regular family mid-size sedan which can be bought for the fraction of its original price. It is quite a good car with a wide arrange of engines, advanced technology, and features along with Volkswagen`s signature style and quality. So, where is the catch? Due to circumstances regarding Volkswagen’s emission cheating scandal, a lot of diesel powered Passats were recalled during last year, giving bad press to whole Volkswagen`s model lineup and causing prices to go down. So, Passat from 2014 with the MSRP of $25,000 is now worth $12-13,000 depending on options. We don`t recommend you buying examples equipped with notorious diesel engines but regular, gasoline-powered versions are also cheap.
Dodge Magnum is a station wagon version of the Charger with little design modifications on the front and a sleek profile. It shares the same platform and mechanics as the Charger or Chrysler 300C which means it is rear-wheel drive, pure American wagon with powerful engines and solid build quality. However, the market never fully accepted this station wagon due to the fact that it was introduced at the start of the SUV craze. That is why it is cheap today and you can find them for just $7,000 which is a small price for this powerful and cool-looking wagon.
Lincoln MKZ was Ford’s answer to the BMW 3-Series and Mercedes C-Class in the highly competitive executive sedan segment. Unfortunately, it was never recognized as a true competitor despite being a proper luxury model with a high level of standard equipment and powerful engine. Despite having 263 hp and leather interior, MKZ was never as refined or as fast as other models which affected the price. With the base price of over $35,000 you will be amazed to hear that you can buy a five year old MKZ, low mileage example in perfect condition for less than $15,000.
Mazda 6 is a pretty good car if you are looking for a reliable and nice looking family sedan. It is also an affordable and decent performer. Even so, the depreciation level affects it as same as other cars so nice 2010 Mazda 6 is worth around $8,000 on the used car market which is pretty cheap. Of course, you should always search for better equipped and more powerful examples which will cost slightly more but will still be quite affordable.
If you are looking for a big SUV with lots of features, seating for up to 8 people and good towing capacity, but you have a limited budget, Chrysler Aspen is the car for you. Largely forgotten in the world of sleeker SUV models, Aspen is a rugged multi-purpose vehicle with decent styling and comfort. With the price of around $40,000 back in 2009, you can find them today for $12,000 to $13,000 in decent shape and with all important features. Very cheap compared to the prices of newer models.
Debuted in 2010, Genesis Coupe was stylish and powerful entry-level sports car. It was designed to battle Ford Mustang and Chevrolet Camaro but failed to be a real competitor, mostly due to lack of powerful engines and image. However, it is still a cool little coupe with good performance and driving dynamics. With the starting price of around $27,000, you will be surprised that you can find nice examples today for as little as $8,000 to $9,000.
Luxury cars are always suffering from depreciation and BMW`s most luxurious sedan, the 7-Series is no exception. The stylish sedan from Munich comes equipped with powerful engines, creature comforts, and specific looks. The base price for 2010 model was over $80,000 but you can pick it up today for as little as $23,000. Of course, look for perfect examples with full service history and even if you pay a little more it is well worth the investment.
The Cadillac SRX was always a good choice when it comes to stylish SUVs with decent interior room, quality, and performance. With 265 hp and luxury appointments, the SRX was a pretty desirable model with the price of around $40,000. It is interesting to know that you can find perfectly maintained and preserved examples of this cool SUV for around $15,000 which makes the SRX a luxury SUV bargain.
Despite obvious qualities, Volvo S80 was always kind of a forgotten model on the luxury sedan market, which is a shame really, since the S80 has it all, the style, the comfort, the quality and the looks. The base price for this jewel of Swedish engineering was around $45,000 but now you can buy a decent example for as little as $11,000 which is a steal. It is possibly the best deal for a used executive sedan at the moment.
Audi’s uber-luxury sedan is a well-known premium model that captivates the buyers with its elegance, luxury items, advanced Quattro all-wheel drive and powerful engines. It is also fully built out of aluminum which makes it relatively light and agile, despite its size and opulence. The current generation is on the market for quite some time and as with all luxury cars, depreciation is becoming pretty noticeable. The original sticker base price was around $80,000 for a 372 hp version with short wheelbase. Today, you can get a 2012 Audi A8 for around $30,000 and for less than $40,000 you can get the ultimate W12 model.
You might find this strange, but super luxury Maybach, an epitome of the over-the-top sedan is one of the cars with the worst depreciation over the years. Remember back in 2006, the base price of a Maybach 57 was almost $400,000 and it could go up to half million dollars for the 62 S model. It was a crazy amount of money then and thanks to the magic of depreciation, Maybachs today cost around $50,000! You can even go lower for examples with more miles, but for a price of nicely optioned mid-size SUV, you can have one of the most prestigious cars in the world.
Chrysler 300 C is a veteran in luxury sedan class. When it was first introduced in 2005 it marked the revival of the classic American sedan: big, muscular-looking, powerful and luxurious. The range of powerful V6 and V8 engines, including the famous Hemi V8 was the main selling point for many customers all over the world. The average price of this stylish sedan is around $40,000 but you can find a couple of years old and slightly used examples for below $20,000 which means that the 300C depreciated significantly in just a few years. All of this means that Chrysler 300 C is a pretty good buy if you are looking for a big, mean-looking luxury sedan.
The elegant and comfortable Lexus GS was always a popular model on the sedan market. The buyers praised its luxury features, decent power, and driving dynamics and there was even a V8 option for those looking for more performance. However, depreciation is bringing their prices to very affordable levels and today you can find nice examples for $15,000. This is a big fall from around $50,000 when new.
The Acura ZDX was on the market for four short years from 2010 to 2013 and it was a pretty ambitious attempt by Acura to introduce a sporty looking crossover with a low roofline, powerful engine, and all-wheel drive. On paper, this car was perfect, but in real life, the Acura ZDX was a simply ugly and strange-looking car. It was a shame really, since signature Acura`s qualities, powerful engine and nice interior went largely unnoticed by the market. When it was introduced, the Acura ZDX had a base price of around $35,000. Today, you can find good examples for as little as $13,000 which is a bargain for a vehicle that’s a couple of years old.
Remember the Hummer H2? It was a big, luxury SUV with unmatched opulence, poor fuel economy and looks of an apartment block which was killed by the recession in 2009. Back in the day, it was crazy popular despite all the downsides and pretty expensive at over $60,000 base price. But, today these gas-guzzling, boxy SUVs can be found for less than $20,000. They are still kings of the parking lots thanks to enormous dimensions and they still are very expensive to run.
Audi’s executive sedan in form of the A6 was a popular model due to elegant styling, powerful engines, and cool-looking interior. Also, this model featured several signatures Audi`s technical marvels like famous all-wheel drive, the mighty Quattro. Naturally, the base price was pretty high and the A6 starts at around $50,000 but today, you can find them for around $15,000, clean and loaded with desirable options and full-service history. That is more than 1/3 of the original sticker price for 6 to the 7-year-old car.
The CL series of models was always the most prestigious two-door Mercedes. Not as sporty as the SL, the CL was Gran Turismo car with powerful engines, space for four people and top of the line luxury features. Of course, with that level of prestige came a rather high price tag, and base price started at over $100,000. Today, you can find perfectly good Mercedes CL 500 models for around $25,000 which is the price of an economy sedan.
Similar to the Aston Martin Vantage, this prestigious power roadster from Germany with the original price tag of over $100,000 can be yours for just a fraction of that sum. The two-seater summer cruiser with V8 power and rear-wheel drive is every enthusiast’s dream. Today, you can make this dream your reality for less than $30,000 which is a real bargain.
The Mercedes S-Class is a vehicle renowned for being more advanced than its competitors are. The typical off-the-lot cost is above $70k, but depreciation is the most remarkable feature a new owner will experience. Last year’s models are now worth 32.4 percent less. This makes the S-Class one of Mercedes’ used car bargains since they are so technologically equipped when they’re new, to purchase one used at a fraction of the sticker price would not be an unwise buy.
In the best tradition of Jeep models, Commander was a big, capable off-roader with luxury interior and features. It also had a very boxy styling with a signature front end which was not well received by some buyers. However, it is still very competent and quality SUV with a lot to offer. It was discontinued in 2010 and today you can find nice examples for around $10,000 which is a big drop from the $40,000 price when new. Also, you can get it with the powerful Hemi engine, which is a great power plant.
You probably never thought of Aston Martin as an affordable car but the reality of the situation is that even the most exclusive brands and models are affected by depreciation. The Vantage was a smaller and cheaper model launched in 2009. It featured V8 engine and all the luxury items and details Aston Martin is known for. With the base price of $120,000 it was very expensive but today, you can buy it for as little as $35,000 which is a price of a boring, ordinary family sedan. So, ask yourself, would you rather drive an Aston Martin or a Toyota Camry?
The Subaru Legacy has two interesting and distinctive features that make it a pretty desirable second-hand car. One is a powerful yet economical boxer engine and the other is intelligent all-wheel drive which comes as standard and provides additional security in demanding driving conditions. The base price of the Legacy was never high despite the obvious qualities and you can get a decently equipped Legacy for around $27,000. However, you can find few-year-old models for around $10,000 which is a steal.
Luxury cars are prone to depreciating more quickly than roadrunners people buy and drive hard and often. The BMW 328i is an example too of a popular luxury vehicle that’s leased in large numbers, over-supplied like Chevy’s Impala, and destined to depreciate even faster.