Cars That Do Not Hold Their Value
As they age, some cars lose their value more rapidly than the average
car. Just because they look good and are reliable, doesn't mean
that the market will be there when you are ready to sell in a few years.
The average car loses 65% of its original
value in 5 years.
But, some lose 75% or even more!
This makes these cars very expensive to own in the long run just
because of depreciation. You cannot get your money back out of
them, and thus, they become more expensive than a car that costs more in
the beginning.
Very few drivers buy a car and keep it until it is completely worn
out, so this is important car buying information.
The Kia Sedona is a popular minivan that has earned the Insurance
Highway Institute's "Top Safety Pick" for 2005, 2006 & 2007. It
comes with a 10 year or 100,000 miles powertrain warranty. This
makes it a smart buy for that reason, but it loses 80% of its original
value in 5 years. Consumers need to know this before buying one.
The Suzuki Aerio, Forenza and Reno are also poor resellers and lose
approximately 75% of their value in 5 years. The Aerio is no
longer being made and is being replaced by the SX4.
The Lincoln Town Car loses 79% and its sister, the Mercury Grand
Marquis, loses 75% of its value in 5 years.
The Dodge Durango loses 76% of its value due to reliability and fuel
economy problems.
With the rising gas prices, SUV values have become a problem.
Gas costs too much and people are not as apt to buy a big gas-guzzling
SUV even if they are great for hauling the family around town.
Customized vehicles tend to have a lower resell value, because you
have to find a buyer who shares your passions and tastes which
dramatically narrows the market. The depreciation values may be
more than you expected.
So, check out the
used car market before you run out and buy your next new car!
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