Whether looking for new or used cars, considering how much value the vehicle will lose is often a key sticking point for many buyers. Depending on the tax paid on the vehicle, it can lose up to 15 percent of its value the minute you drive away from the car dealership. The car will then continue to depreciate, and they typically lose an additional 10 percent each year in the decade that follows.
Luxurious cars will often see the highest levels of depreciation, with some losing as much as a fifty perfect of their value in the first two years. This had led to increased demand in car leasing as people seek to fight off losing money purchasing a car. For people looking to buy used cars, identifying which cars are being discontinued can allow you to get a high-value car for significantly less, as the demand drops.
New cars will continue to lose value for around ten years before plateauing. The first five years will, on average, vehicle drop around half of its value. That is why it is essential to understand what you are getting into before making a purchase. We have created a list of 50 cars that are rapidly losing their worth and why.
50. Smart ForTwo
Despite having relatively cheap car insurance rates, the Smart ForTwo typically plummets in value throughout its first year. Despite having excellent gas mileage and ticking all the boxes in terms of the environment, there are too many negatives for the car to retain its value. A vehicle of this size isn’t comfortable for the majority of people and doubts remain over its safety rating. Add to this, the lousy two-speed transmission, and you can see why people are failing to see the benefits when compared to safer, larger cars. Typically, the Smart ForTwo will lose around 36 percent, about $14K, of its value in the first year. That isn’t great, even for a small car.
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