1 year ago

If you’re going to make an investment in a car, then you’ll want to factor in the cost of depreciation. Over time, the resale value of the car will decline, meaning that you’ll get less back should you choose to cash in.

The rate of this decline will be fastest in new cars. As such, if you want to minimise the effects of depreciation, it makes sense to shop for a used car instead. This way, the bulk of the depreciation will already have been priced in. This is especially so if you’re shopping for cars older than three years old. But the make, model and condition of the vehicle all matter, too.

Some cars tend to be considered ‘money pits’, thanks to their poor resale value. On average, you might expect to lose around 20-30% of the car’s value over the first year, and up to half of the value over the first three years. In some cases, however, the decline can be much more acute.

It’s worth noting that many of the worst offenders come from highly-esteemed manufacturers. This is largely because these vehicles commanded a high price to begin with, but that can’t sustain the necessary demand in the used market. To obtain the current vehicle valuation across five pricing categories, including Dealer Forecourt, Trade, Private, Part Exchange, and Auction prices, you can run a car check. These history reports provide valuable information for both potential buyers and sellers.

Mercedes-Maybach GLS

According to data from Auto Express, this car is the worst offender when it comes to depreciation. You might expect to retain just a third of its value after just three years. With a V8 engine and a six-figure price tag, it’s a car firmly aimed at VIPs and those who cater to them.

So, what other cars made the list?

Fiat Tipo

This Fiat would seem to sit at the opposite end of the spectrum to the Mercedes, being a modestly-priced hatchback. Unfortunately, it isn’t modestly priced enough, and will shrink in value from around £21,000 new to around £7,000 used. As such, second-hand is an obvious choice.

Lexus LS

Here we have another luxury limousine-esque vehicle in the form of the LS. The stellar reputation of the brand isn’t enough to save this car from marked depreciation. In a slice of the market where competition is fierce, this model isn’t quite feature-rich enough to stand up to the competition.

DS 9

DS is an offshoot of Citroën that’s aimed toward the executive class. It boasts a range of options and a reliably luxurious interior, but it’s still overpriced, and thus it will depreciate fast.

Maserati Quattroporte

Maserati is a brand with a horrible reputation for depreciation, and it’s a mainstay in lists of this kind. The Quattroporte, like many of its stablemates, is aimed squarely at the top end of the market – but improved reliability isn’t enough to save this car from sharp depreciation.

Leave a Reply

Your email address will not be published.

Don't Miss

Photo by Mike B from Pexels

4 Benefits of Car Leasing

Over the last few years, car leasing (also known as Personal Contract