The Brand With the Worst Resale Value May Surprise You
You won’t find any shortages of “best of” lists when car buying with rankings of today’s available models. As important as it is to know the best, it is also important to know what to avoid. And for anyone looking for resale value, any vehicle bearing this popular brand’s badge should be excluded from your test-drive roster. You might be surprised to see which automotive brands are considered the absolute worst resale value with the highest depreciation rates.
Why resale value matters to car-buying consumers
More and more car buyers are looking for longevity. Consumers are keeping and driving their sweet rides longer and want a model that can go the distance, literally. But it doesn’t mean that when it’s time to trade in or sell those older model vehicles, consumers don’t want to get the most bang for their resale buck. Resale value and decreased depreciation continue to play a pivotal role in how people buy their household vehicles.
Allstate says resale value matters more than you might think, especially from an insurance perspective. If you intend to sell your vehicle later, resale value estimates matter. However, if you have an accident that totals your ride, your insurance provider will base the actual cash value payout on the typical resale value of the vehicle. So, the insurance giant suggests that even if you plan to keep your car forever, resale value matters in insurance coverage.
The absolute worst popular brand in resale value
Recently, Car Edge studied and ranked today’s automotive brands and models in terms of resale value. Their analytics considered a host of factors, including today’s new car prices and original MSRP values. They looked at maintenance costs and estimates associated with predicted expenses.
According to the latest metrics, Buick is the worst brand for retaining resale value. And the Car Edge team says Buick models “depreciate hard and fast.” Buick models only retain 63.15% of their original value at the five-year ownership mark. Specifically, this study points to the Buick Enclave and the Buick Encore as models that fall toward the bottom of the value retention list.
Chrysler is the runner-up
In this same study, another popular automotive brand comes in as a close second for being the worst at retaining value. Chrysler ranks next to the bottom of the list across three, five, and seven-year time periods, too. Your Chrysler will only retain 64.84% of its value at the five-year mark, less than a percentage point away from the worst-offending Buick brand. The Chrysler 300 is the worst offender and is only a bargain if you’re looking to buy older, used models or intend to use these cars in a fleet capacity.
The Fast Lane Car assembled additional data, including studies from iSeeCars and others, to compile some top 10 worst resale value models. And you’ll see that most other automotive brands always seem to have one or two models in their lineup with poorer resale value than others.
For example, the Ford Expedition loses 50.7% of its value in five years, and the Lincoln Navigator loses 51.9% of its value in the same timeframe. But instead of drilling down on models, take the list of automotive brands with the worst resale value to the bank because it signifies increased depreciation over the portfolio of vehicles overall.
Buick models are worth buying, especially with luxury touchpoints and sleek designs. But beware of the over-arching resale values. Car Edge says that unless you think that you “want to buy a Buick because your family’s always owned Buicks,” this badge won’t bring long-term ownership value.