Without a doubt, the toughest pill to swallow when buying a new car is the massive depreciation hit you experience as soon as you leave the lot. Once a car is sold, it’s no longer “new” and simply shifting to the used category – even if the car has just a few miles on the odometer – affects its value. This is the case for every single new vehicle in the world, but beyond that, depreciation can vary quite dramatically over the months and years to follow.
It’s no secret that some brands and models hold value better than others, and a new study from iSeeCars.com takes a look at the best and worst of the bunch. The study analyzed 7.7 million new and used car sales in the U.S., covering every automotive genre from sedans to SUVs over the course of five years. On average, new vehicle purchasers see half their car's value disappear during that time, but the 10 vehicles we feature in this particular slideshow don’t fare nearly as well. In fact, the worst of the worst loses nearly three-quarters of its value. Yikes.
It will probably come as no surprise that luxury cars dominate this list, with one notable German automaker comprising nearly half the models in this slideshow. As warranty coverage expires, expensive maintenance certainly becomes a factor. But the study also points to a lack of demand in the higher-end luxury used market simply because these buyers want new cars. Alternative fuel vehicles are also among the worst-depreciating models, which the study attributes to government incentives effectively dropping the sticker price right off the bat and the rapid advancement of hybrid and EV technology.