It is amazing that picking the right car or truck will get you more money once you sell it than others. There are certain cars that just take a huge drop even a year after their purchase new. So why not soldier on with the heap you’re driving and wait until the car of your dreams becomes two- or three-years-old? To help you toward that end we have these 2020 cars that are plunging in value the most.
The day you drive your brand-new car off of the dealer’s lot it drops 10% in value. New cars will average a 15-25% depreciation for each year over the next four. At five years your new-car purchase is worth at least 60% less than when you bought it. But there are others that drop even farther than that. Let’s see which ones you should consider used.
The Smart car has always had a bit of a slide in value. Transmission woes and a cramped interior make this a love or hate vehicle. That is why it loses 36% of its value in the first year. That amounts to $14,000. So whatever you gain from buying a car like this you should consider the depreciation to determine if it pencils out.
Let’s get real. Impalas are built for rental companies. They gobble up almost every one that Chevy makes. So this creates a problem. Few want them but there are many available due to the rental fleets. That equates to more Impalas on the market than there is demand. That also equates to a 33.4% drop after one year. And, that equates to a $27,000 drop in value after just one year.
SUVs are all the rage. But buyers are crunching the numbers and finding that financing a Yukon for five years makes your purchase a $70,000 purchase rather than the MSRP of $47,000. Financing and interest add up quickly. So you can figure that SUVs like the Yukon depreciate by a third each year.
The Mini Cooper has a strong following and besides they’re fun to toss around. But the Mini depreciates more than anything else in its class. After five years your Mini will be worth 30% less. Hopefully, that ability to fling it around corners makes it worth that much of a drop.
The Ford Mustang is an American icon. But the thing about the Mustang is that once an all-new model is introduced the last generation is forgotten. That means that a lot of the current Mustang’s features are also found in the previous generation’s. And that previous version gets knocked down a few rungs. So figure your $35,000 Mustang is now worth a tad over $10,000.
There are a lot of Leaf EVs that are leased. Along with the tax credits the dealerships have factory incentives and outright discounts. All of that swirls around to mean used Nissan Leafs are quite inexpensive. Check with your local Nissan dealer to see how this affects warranties and prices.
We all love the Camaro. But when the value is factored into the equation we’re on the fence. According to Unpuzzle Finance, a new Camaro will lose 40% of its value in the first year. Wait, what? 40% is just too much for this brand to continue.