5 Brands With the Worst Resale Value
While some people don’t consider it when shopping for a new vehicle, resale value can be just as crucial as other car buying criteria, e.g., performance, brand, comfort, design, functionality, etc. This is particularly true if you plan on selling and upgrading. It might also come in handy if you need some quick cash. If this is you, these car brands have the worst resale values, so it might be best to avoid them.
Buick has the worst value retention rate out of the non-luxury vehicle brands, according to CarEdge. In fact, you can offload it after five years of ownership for approximately 63.15% of its original price. Naturally, this differs from model to model.
For instance, the Buick Enclave’s value depreciates by slightly over $20,000 within the first five years. As such, you can only sell it for 60.95% of its initial cost. As for the Buick Encore, it depreciates by 35% over five years. The Buick Envision slots right in the middle and will depreciate to 63.15% of its original cost in the same period.
Chrysler has the second-worst depreciation rate of any non-luxury brand, and you can sell it for an average of 64.84% of its original price. As one of Chrysler’s more popular offerings, the Chrysler Pacifica loses approximately 37.08% of its initial value over five years for a well-maintained Pacifica averaging 12,000 miles annually. These calculations also assume the cost of the car was $47,535 when new.
The automaker’s full-size sedan, the Chrysler 300, retains 64.84% of its value at five years. At seven years, you can only sell it for 50.72% of its original price. Like the Pacifica, this is based on the assumption the car averaged 12,000 miles annually.
Jeep does a slightly better job of retaining its value, though you still only get 68.42% of the original cost if you sell your truck or SUV after five years. The Jeep Cherokee and Jeep Grand Cherokee depreciate the fastest on the automaker’s lineup retaining only 62.92% and 62.05% of their initial value after five years.
The Jeep Wrangler and Jeep Gladiator are tied on the other end, having lost approximately 22.27% of their value during the same period.
Ram’s value retention shows a distinct disparity between the heavy-duty and smaller pickups. The Heavy-duty options, i.e., the Ram 3500 and Ram 4500, seem to offer the best value retention in the lineup. The Ram 3500, for instance, can be sold for 71.61% of its initial cost. The Ram 4500, on the other hand, retains 73.87% of the original price over five years, something it shares with the Ram 5500.
Conversely, the Ram 1500, the brand’s smallest pickup, depreciates by 31.47% over five years.
While Ford is considered among the best American car brands, it has the fifth worst value retention of vehicles sold in the U.S. at 69.37%. With a more extensive lineup than the other brands listed, the value retention rates vary according to the car type. The SUVs, for instance, are the manufacturer’s weakest links, with the Ford Explorer and Ford Expedition retaining only 62.83% and 63.14% of their value, respectively.
Conversely, the trucks seem to offer significantly better resale values. The Ford F-250 Super Duty hardly depreciates, and you can recoup 82.81% of the truck’s initial value after five years. However, there’s a sharp decline in value between the fifth and sixth years of ownership to 66.63%.
Another example is the Ford F-550 Super Duty. Its value drops to 80.71% after five years. Also, like the F-250, it’s followed by a sharp decline in value over the next year to 66.83%.