Imagine you just bought a brand new vehicle. You absolutely love it and can’t wait to get behind the wheel and drive it home. Everything is perfect. Then, you fast forward five years. You are ready to trade in that car and get a new one. You took care of it, and it still looks great, but your heart drops when you find out it’s only worth a small fraction of it’s original value.
The reality is all vehicles start depreciating the very second you drive them off the car lot. However, some cars lose value much more quickly – to the point that it’s a factor you have to consider before making a purchase. So, to make things easier for you, here are 14 cars that simply don’t hold their value. You may wish to avoid them, or if you do make a purchase, be prepared to not get much out of it when you are ready to sell or trade in.
1. Kia Sedona
Minivans may not be as popular as they once were, but they still have a niche, especially among families. If you choose to purchase a minivan like the Kia Sedona, you definitely want your new ride to retain its value.
That’s not going to happen with the Kia Sedona, unfortunately. A brand new base model Sedona in 2016 will cost about $26,400 MSRP. After just two years of owning the van, though, it will lose almost half its value. In five years, that Sedona will lose 80% of its value. That means the vehicle you paid $26,000 for will only be worth about $5,000 when you are ready to trade it in.
The Kia Sedona has gained such a reputation for depreciating quickly that it has been named by Bankrate as the number one fastest depreciating vehicle.
2. Chevrolet Impala LT
We’ve seen the Impala go through a metamorphosis over the past few decades and it remains one of the more well-known full-sized cars available. It’s considered a fairly affordable vehicle too. However, you also do have to factor in the cost you can expect simply from your car losing value too quickly.
The MSRP for a base model 2016 Chevrolet Impala is $27,095. In just five years, the car will lose half of it’s value, dropping down to $13,560 according to Edmunds. While this isn’t necessarily the worst you will see on the list, it’s still a fairly sizable value drop even if you keep your car in tip top shape. It’s something you definitely have to keep in mind if you plan on selling or trading your car in a few years.
3. Ford Expedition
SUVs have definitely become popular in the past few years, taking the place of minivans for many families. And, one full-sized SUV, the Ford Expedition, is billed as “unstoppable” on the Ford website. However, that fact comes into question when considering the depreciation value of the vehicle in just a matter of years.
If you are interested in purchasing a Ford Expedition, then you can expect to pay around $45,435 MSRP for the base model. That’s a fairly high price tag, especially when you find out how much it is going to depreciate. The five year value of the Expedition is only 30% of that original $45,435. This is mainly due to extremely low fuel economy and a dated cabin look to even the 2016 models.
4. Jaguar XJ AWD
Another luxury vehicle makes the list with the Jaguar XJ AWD. This car is billed as a sport model thanks to a turbo charged engine and an aerodynamic look. However, it remains a sedan too, offering space in the interior and a larger body type. The all-wheel drive feature makes the Jaguar driver-friendly even in hazardous environments.
Everything sounds good thus far, but when purchasing a luxury vehicle with a high price tag, one would expect better residual value. The starting MSRP for a Jaguar XJ AWD is $77,900, slightly higher than the non-sport model. In five years, the car will lose 69% of it’s value, dropping down to just $24,500 according to a study by Trusted Choice Independent Insurance Agents.
5. Jeep Compass
Another SUV, or a crossover in this instance, has made the list in the Jeep Compass. And, it’s odd to see one of these make the list since certain Jeep models have gained a reputation for holding their value even for decades. However, that’s not the case with the Compass. This model is billed as the more fuel efficient Jeep SUV with a gas mileage of 26 MPG on the highway.
The price tag is fairly wallet friendly too at only $19,595 MSRP for a basic edition. However, if residual value is a concern for you, then you would likely be better off choosing a Patriot or a Cherokee. That’s because in five years, the Jeep Compass will only be worth 33% of it’s original value. That means your car would be valued at just under $6,000, and that’s a fairly big drop.
6. Porsche Cayenne Turbo
The Porsche Cayenne Turbo is a sporty little compact SUV with a V8 engine and 520 horsepower. It’s considered one of the top choices of Porsche enthusiasts because of its unique combination of luxury and speed. And, while Porsche has long been known as an investment worthy vehicle, that’s simply not the case with the Cayenne Turbo.
The MSRP on the base model of this turbo charged SUV is $114,700. That’s a fairly hefty price tag, and when you factor in the value after just five years, it may be a bigger price than you are willing to pay. That’s because a Cayenne Turbo can cost as little as $20,000 in five years. That’s more than an 80% drop — a steep change for such a luxury vehicle.
7. Dodge Durango
You may be noticing a trend here in that many of the vehicles that lose value quickly are SUVs. That’s largely due to poor fuel economy in a world where eco-friendly options are more popular than ever. Here’s another example: the Dodge Durango. Sporting the classic Dodge style and front end, the Durango gets only 23 MPG on the highway and 14 MPG in the city.
The starting MSRP of a base model Dodge Durango SXT RWD is $30,495. The 4WD models cost considerably more. This SUV depreciates rather quickly too. According to Forbes magazine, the two year value for the Durango is 44%. After five years of ownership, the vehicle depreciates 76%. That leaves a five year value of just $7,300.
8. Nissan Armada
If fuel economy is a concern to you, then the Nissan Armada will likely make you cringe at just 13 MPG in the city and 19 MPG on the highway. That’s fairly low even for a full-sized SUV, and it’s likely the reason for the fast depreciation on this vehicle. Additionally, Nissan hasn’t made many changes to the look and feel of the Armada either, making it seem somewhat dated.
If you purchase a Nissan Armada, you can expect to pay $38,510 as a starting MSRP for the base model. The depreciation is rather steep, going down to only 27% of its original value in just five years. This means if you choose to purchase a 2016 Nissan Armada, five years from now, it will only be worth about $10,397 according to The Car Connection.
9. Nissan Titan
This time, we veer away from SUVs to a full-sized pick up truck. The Nissan Titan has a V8 engine, and that means more power and fuel consumption. The problem is, this truck has a lower fuel economy and fewer features than comparable models. Nissan offers several versions of the Titan including the S, the SV, the Pro-4X, the SL and the Platinum Reserve.
The starting MSRP for the base model Nissan Titan S is $40,290. The higher end Platinum Reserve has a starting MSRP of more than $57,000 according to the Nissan website. Perhaps it’s due to low gas mileage or a somewhat dated look, but the Nissan Titan has the lowest residual value of any full-sized truck currently on the market. After five years, the Titan will drop to only 30% of its original value.
10. Cadillac Escalade
It’s safe to say that the Cadillac Escalade has definitely made a name for itself as a luxury SUV. It has shown up in songs and continues to be a preferred vehicle of musicians, movie stars, and those who simply want to stand out. These vehicles seem to have everything, including a fairly high price tag to go along with their luxury status. However, they definitely fit this list as they drop in value extensively in a short time.
The most basic model of a 2016 Cadillac Escalade will cost $72,970 MSRP. However, a five-year old model will only sell for about $8,000 to $10,000 according to The Cheat Sheet. That’s less than 15% of the original value of the luxury SUV.
11. Volvo S80
Volvo considers the S80 to be its flagship and it has long been associated with large model luxury sedans. While the car is considered elegant and classic in model, it also comes across as a little dated. After all, people who prefer luxury model cars still want the newest and most updated features, so this is a problem. And, this could be one of the reasons why the Volvo S80 is a fast-depreciating vehicle.
The starting MSRP on a 2016 Volvo S80 is $43,450. It is considered to be the top luxury model under $50,000 to lose the most value the quickest. That’s because in just five years, the Volvo S80 would only be worth 18% of its original value. That means a five-year old model would only be worth about $8,000.
12. Lincoln MKS
Lincoln is attempting to rectify a bad situation by re-vamping the MKS to include EcoBoost in a V6 turbo charged engine. Additionally, the luxury car has been changed on the exterior to make it look sportier and less…Lincoln. However, it still remains a luxury sedan and the flagship of the Lincoln brand since the Towncar was discontinued.
The newest model of the Lincoln MKS has a lower price tag than some other luxury sedans at only $38,850 starting MSRP for a base model. While that lower price tag may be appealing, the depreciation may be a concern, though. The residual value of the MKS is 22% of its original value in just five years of ownership, and that’s a steep drop even the new changes have not been able to overcome.
13. GMC Yukon
GMC has made some changes to this full-sized SUV in the past couple of years, and for those reasons, the Yukon does actually hold its value somewhat better than many other vehicles on this list. That doesn’t mean it has a great value, though. Listed as “professional grade”, the Yukon just can’t stand up to other full-sized SUVs, like the Chevrolet Suburban, which does hold its value better than anything we have discussed here. Adding in the fact that the Yukon only gets about 16 MPG in the city and 23 MPG on the highway, this is just another reason for it to depreciate quickly.
The MSRP on a 2016 Yukon base model starts at $48,165, which seems to be fairly on-par with other full-sized SUVs. However, after five years, your SUV would only be worth about 33% of its original value.
14. Chrysler 200 Convertible
Finally, we wrap this list up with the sporty Chrysler 200 Convertible. This mid-sized sedan has a moderate price-tag and the fun convertible design. In fact, this is a popular enough car that you have likely seen a few on rental car lots and you may remember it in its earlier rendition: the Sebring.
The MSRP on a Chrysler 200 Convertible is around $22,990 for the base model and the prices can go up to as much as $30,000 depending on the features and upgrades you choose on the new car. However, once the vehicle is five years old, it only holds 23% of its value. That drops the value down to only $5,287 in a fairly short time frame for the type of car it is.
All vehicles drop in value as soon as you buy them, and while that’s a frustrating fact of life, there are some things you can do to avoid the issue. Some cars simply hold their value better than others, and this list of 14 would be vehicles to avoid if you want a good trade in or sale value in a few years.