You’re in the market for a car. In the excitement, you can picture yourself at the wheel, cruising towards the horizon. You’re also concentrating on getting a good deal. But buying a car is more than just dreams and price tags. We need to consider how well that car will hold its value down the road, because depreciation is often the biggest running cost of all.
Whether it’s due to high maintenance costs, shifting consumer preferences, or outdated technology, here are the cars that could end up costing more than you’d expect.
Chevrolet Malibu
Here’s a sedan that was once a family favorite, but has struggled to maintain its appeal. With SUVs dominating the market, buyers pass it up for more versatile options. The Malibu’s resale value has taken a nosedive, with depreciation hitting owners harder than expected. Its affordability makes it seem attractive upfront, but long-term ownership can be a financial letdown.
Nissan Altima
The market for mid-sized sedans is overcrowded, making it harder for the Altima to stand out. Heavy leasing programs have flooded the used car market, driving prices lower and impacting resale value. This Nissan’s smooth ride and decent fuel efficiency don’t outweigh its rapid depreciation.
Ford Explorer
This midsize SUV is popular so it should tick all the boxes, right? Wrong. High initial pricing and heavy competition in the SUV market mean it faces an uphill battle when it comes to retaining value. Reliability concerns and a history of recalls further tarnish its resale potential, causing hesitation among used car shoppers. Even with updated features and a family-friendly design, it struggles to maintain its footing against newer models.
Jeep Cherokee
Rugged appeal and off-road capability aren’t enough to save the evergreen Cherokee from depreciation woes. SUV buyers like big, chunky trucks and this one is smaller than most of its competitors in the same price bracket.
Reliability issues and higher-than-average repair costs deter potential buyers, making it harder to sell in the used market. While Jeep has a strong following, its Cherokee model struggles.
Tesla Model S
The EV market is evolving fast, which means the Model S – once the crown jewel of Tesla’s lineup – has seen its value drop. There are plenty of newer electric models offering better features and higher range between charges, which is of prime importance to EV buyers.
Rapid advancements in technology make this car feel outdated, and the depreciation rate can be shocking for those who paid top dollar.
BMW 7 Series
Shiny top-end luxury cars lose thousands of dollars in value the moment they leave the showroom. That’s because the sort of person who can afford an expensive new car doesn’t buy secondhand ones. Luxury comes with steep depreciation. High initial prices and hefty maintenance costs make it less attractive on the used market. As new luxury sedans hit the market, older 7 Series models struggle to hold their value.
Chrysler Pacifica
Depreciation is also a big issue with minivans like the Pacifica. Vehicles designed for family use often suffer from wear and tear, making them less appealing to used car buyers. Despite its practicality and comfortable interior, it struggles to compete with SUVs that are just as spacious but more stylish.
Kia Cadenza
Full-size sedans have fallen out of favor, making the market for the Cadenza continue to shrink. Despite its luxurious interior and smooth ride, it can’t compete with SUVs or higher-end sedans from better-known brands. Limited brand recognition and declining demand make it one of the fastest-depreciating vehicles in its class.
Audi A8
High initial costs and rapid advancements in technology make older models less desirable – even hitting premium brands like Audi. Luxury buyers want the very latest updates, leaving used A8s struggling to find new owners.
Competing in a crowded market with rivals like Mercedes-Benz and BMW further diminishes its standing. The A8’s exceptional driving experience isn’t reflected in its resale value.
Cadillac Escalade
While this Cadillac remains a status symbol for some, its resale value tells a different story. High maintenance costs and poor fuel efficiency have hit this large SUV hard. Despite its bold styling, innovative features and luxurious interior, the Escalade depreciates fast.
Jaguar XF
This Jaguar’s reputation for high maintenance costs scares off many potential buyers, which reduces its value in the secondhand market. The elegant XF sedan suffers from steep depreciation due to reliability concerns and expensive upkeep.
The Jaguar’s sleek British design and luxury appeal aren’t enough for the Jag to compete against more dependable competitors.
Hyundai Sonata
Reliability and affordability are hallmarks of the Sonata, yet it depreciates faster than most of its rivals. That’s because the midsize sedan market is highly competitive, and stronger players like Honda and Toyota overshadow Hyundai’s offering.
Furthermore, its reputation as a budget-friendly car works against it in the used market, where buyers prioritize vehicles with higher perceived quality.
Dodge Charger
Niche appeal, high fuel consumption, and expensive insurance rates, make this muscle car less attractive to secondhand buyers. While the Charger’s powerful engine and bold design draw enthusiasts, its depreciation can be shocking.
Owners looking for a thrill ride might be fine with the trade-off, but resale value isn’t a strong suit. Be mindful of how quickly this car can lose its value compared to more practical options.
Infiniti QX80
The QX80 is a big car that’s hard to ignore – and so is its depreciation. Fuel costs and high maintenance expenses make this features-packed full-size luxury SUV less appealing on the used market.
Competing against brands like Mercedes-Benz and BMW, also hurts its resale value. Even though it provides a spacious and comfortable ride, buyers tend to overlook it for more recognizable names with greater prestige
Volkswagen Passat
Shifting market trends have left this old favorite out in the cold. The VW Passat struggles with depreciation despite its solid engineering and comfort. Volkswagen’s move away from sedans and toward SUVs and EVs has left the Passat behind. Limited updates in recent years have further hurt its resale value. While it’s a solid option for daily driving, it can’t match the enduring appeal of rivals like the Honda Accord or Toyota Camry.