Top 10 Vehicles That Lose Value FAST

[Rambit]

Relax boys and girls, no 300's made this Forbes list. The only Chrysler product is the Durango, which never was a popular vehicle in Canada at least. Poor Suzuki gets hit hard. They must be like Bic disposable lighters.

Kelley Blue Book defines resale value as the projected market value of a vehicle at a specific time in its life cycle. It is typically represented as a percentage of a vehicle's original manufacturer's suggested retail price (MSRP) and is used for estimating the vehicle's value when it's sold or traded in.

STORY HERE
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Kia Sedona
Base Manufacturer's suggested retail price: $21,420
Five-year depreciation: 80%
Retained value after two years: 47%
Retained value after four years: 28%

Lincoln Town Car
Base MSRP: $45,910
Five-year depreciation: 79%
Retained value after two years: 47%
Retained value after four years: 29%

Isuzu Ascender
Base MSRP: $27,884
Five-year depreciation: 77%
Retained value after two years: 46%
Retained value after four years: 29%

Dodge Durango
Base MSRP: $26,455
Five-year depreciation: 76%
Retained value after two years: 44%
Retained value after four years: 29%

Ford Econoline
Base MSRP: $23,725
Five-year depreciation: 76%
Retained value after two years: 44%
Retained value after four years: 29%

Suzuki Reno
Base MSRP: $13,599
Five-year depreciation: 75%
Retained value after two years: 47%
Retained value After four years: 32%

Chevrolet Uplander
Base MSRP: $21,540
Five-year depreciation: 75%
Retained value after two years: 47%
Retained value after four years: 32%

Suzuki Forenza
Base MSRP: $14,249
Five-year depreciation: 75%
Retained value after two years: 46%
Retained value after four years: 31%

Mercury Grand Marquis
Base MSRP: $25,280
Five-year depreciation: 75%
Retained value after two years: 46%
Retained value after four years: 31%

Suzuki Aerio
Base MSRP: $14,770
Five-year depreciation: 74%
Retained value after two years: 49%
Retained value after four years: 33%
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Bernie

[Timeless]

I can tell you that AMG and M series vehicles do horrible also.

[joey]

My 2005 is exactly 3.5 years old, with 35k miles.
MSRP for my car was $36k.

I just looked at Kelley Blue Book at the Trade-in-Value in Good Condition is $18.3k, or 51% Retained Value.

KBB for Private-Party Sale is $21.6k, or 60%.

So my car is depreciating $5k per year, on average.
Assuming a linear deprecation rate, my car's value after 4 years (to compare with Rambit's article) dealer trade-in retained value will be about $15.8k, or 44%. That is much better than the top 10 worse cars.

[Rambit]

Originally Posted by joey

My 2005 is exactly 3.5 years old, with 35k miles.
MSRP for my car was $36k.

I just looked at Kelley Blue Book at the Trade-in-Value in Good Condition is $18.3k, or 51% Retained Value.

KBB for Private-Party Sale is $21.6k, or 60%.

I'd say that's not too shabby at all!!!

Bernie

[joey]

Originally Posted by Rambit

I'd say that's not too shabby at all!!!

Bernie

You were probably posting while I was editing my post.

44% estimated retained Trade-in value after 4 years seems good to me.

[Rambit]

Originally Posted by joey

You were probably posting while I was editing my post.

44% estimated retained Trade-in value after 4 years seems good to me.

Yeah, looks like I was...haha.

Bernie

[DaveW68]

Originally Posted by joey

My 2005 is exactly 3.5 years old, with 35k miles.
MSRP for my car was $36k.

I just looked at Kelley Blue Book at the Trade-in-Value in Good Condition is $18.3k, or 51% Retained Value.

KBB for Private-Party Sale is $21.6k, or 60%.

So my car is depreciating $5k per year, on average.
Assuming a linear deprecation rate, my car's value after 4 years (to compare with Rambit's article) dealer trade-in retained value will be about $15.8k, or 44%. That is much better than the top 10 worse cars.

The only problem with your figures is that they are very generous. Most dealers these days are only giving "fair" value at best, no matter how perfect the car is. If you check the auction values, you'd see a number closer to $15k for your car. Sad, but true. The 300 might not have made the top 10, but there is a good chance that it would be right in the middle of the pack for American cars, and far worse than Japanese models (other than Suzuki and possibly Subaru).

But as far as Chrysler models go, I'm sure that the 300 depreciates less than all others.

[joey]

Originally Posted by DaveW68

The only problem with your figures is that they are very generous. Most dealers these days are only giving "fair" value at best, no matter how perfect the car is. If you check the auction values, you'd see a number closer to $15k for your car. Sad, but true. The 300 might not have made the top 10, but there is a good chance that it would be right in the middle of the pack for American cars, and far worse than Japanese models (other than Suzuki and possibly Subaru).

But as far as Chrysler models go, I'm sure that the 300 depreciates less than all others.

No question that dealer will usually offer Fair Value for even a perfect condition car, which would knock-off another $1.5k to $2k, or around 5% off the retained value.

I was trying to use the same approach/method the article might have used to arrive at an apples-to-apples comparison for the 300.
Unless the article writer had a bias and always used Fair Condition, I assume they used Good Condition for all the cars. But who knows, maybe their analysis was much more scientific and they were able to calculate which model dealers offered Fair Value prices and which model dealers offered Excellent condition values.

[DaveW68]

Originally Posted by joey

Unless the article writer had a bias and always used Fair Condition, I assume they used Good Condition for all the cars. But who knows, maybe their analysis was much more scientific and they were able to calculate which model dealers offered Fair Value prices and which model dealers offered Excellent condition values.

If the writer did his homework, he probably used the average of auction prices to arrive at his figures. Auction value on your car, at least here in IL is around $15k. Dealers will never give you more than auction price for a trade-in. They might show a higher figure on paper, but they're making it up on the price of the new car.

My previous '06 300C, which I purchased in 2-06 brand new, stickered for $41,600. When I traded it in last March, the book value on the car was only $25k with just 10k on the odo and perfect condition. That's a 40% hit off retail in just 1 year. I'd say for you to get $15k on trade-in on a 3.5 year old 300C that retailed for $5k less than mine did isn't too bad.

[joey]

Originally Posted by DaveW68

If the writer did his homework, he probably used the average of auction prices to arrive at his figures. .

The writer used the Kelley Blue Book Residual Value Guide

To identify the top 10 value-losing cars, we enlisted the help of Kelley Blue Book's Residual Value Guide for resale values. Kelley Blue Book defines resale value as the projected market value of a vehicle at a specific time in its life cycle. It is typically represented as a percentage of a vehicle's original manufacturer's suggested retail price (MSRP) and is used for estimating the vehicle's value when it's sold or traded in.

I did a Google on KBB Residual Value and found this link.
Kelley Blue Book's KBB.com Releases 2008 Vehicle Residual Value Analysis | Auto Spectator

No mention of the Chrysler 300, but Chrysler brand ranked low.

Top 10 Brands: Best Resale Value 2008
1. VW 48.1
2. BMW 45.6
3. Acura 45.4
4. Honda 45.2
5. Porsche 44.9
6. Subaru 44.4
7. Lexus 43.2
8. Infiniti 43.1
9. Audi 42.6
10. Toyota 41.4

Bottom 10 Brands: Worst Resale Value 2008
1. Suzuki 27.6
2. Kia 30.4
3. GMC 32.5
4. Mercury 32.5
5. Dodge 32.5
6. Chrysler 32.5
7. Lincoln 33.3
8. Jeep 33.3
9. Ford 33.8
10. Jaguar 34.1