This Is the Used Car That Loses the Most Value

Conventional wisdom says that when a car buyer drives a new car off a dealer lot, it immediately loses a quarter of its value. There is some truth to that. Used car prices, even for those just a year old, drop sharply from the same models bought new. However, used car prices have risen in the past year. While there is no single reason for that, cars are built better than two decades ago, they last longer and bargain-hunting buyers can save money.

Another reason for high used car prices is supply. iSeeCars Executive Analyst Karl Brauer remarked: “The used car market is still seeing the effects of plant shutdowns during COVID-19, which has led to higher prices and shorter supplies of in-demand vehicles like pickup trucks.”

iSeeCars recently looked at asking prices for new and used cars sold between August 2020 and March 2021. The sample size for the study was 2.6 million vehicles. The used cars in the study were “lightly used,” which means they were a year old or less. The average drop in value from the new cars in the sample to the same model slightly used was 17%.

The price of a slightly used BMW 5 Series dropped 36.4% according to the analysis. The 5 Series is BMW’s midsized sedan. Its base price is $54,200. However, one version of the 5 Series costs well in excess of $100,000. Brauer commented about the 5 Series and other high-end sedans: “These price drops reflect the declining popularity of sedans, especially among luxury buyers that have switched to SUVs in recent years.” The smaller 3 Series BMW is also among the cars that lose the most value.

The 15 Used Cars That Lose Their Values Most

Model% Difference$ Difference
BMW 5 Series36.4%$24,207
Hyundai Sonata36.1%$9,898
INFINITI Q5034.9%$16,322
Mitsubishi Eclipse Cross31.6%$8,041
Ford Mustang31.0%$13,422
Mercedes-Benz GLA30.9%$13,562
INFINITI Q6030.9%$16,944
Nissan Sentra30.2%$6,209
BMW 3 Series29.7%$15,266
Mercedes-Benz CLA29.5%$13,420
Mitsubishi Mirage G429.2%$4,781
Cadillac XT528.7%$14,851
Hyundai Santa Fe28.7%$9,061
GMC Yukon XL27.8%$22,639
Kia Sorento27.3%$8,489

Click here to see which 25 cars are disappearing the fastest.


Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Source: Read Full Article