People often say that buying a car is the second largest purchase of your life, with your home obviously being the first. Unlike most homes, 99% of new cars are guaranteed to lose money in the first 3 years. Depending on brand, model and type, some lose more than others. Its higher priced cars from lesser known brands that fare the worst, although there are some exceptions. Here are 5 cars that depreciate really fast!
Originally sticker priced at over $300,000, you can now purchase a used example for an extremely discounted $57,000! In only 14 years, this Rolls-Royce beating juggernaut has shed a whopping $243,000! Despite its incredible performance and luxury, let’s hope you didn’t buy it in cash. The 57 produces 543 horsepower from a modified 5.5 litre V12, altered specifically for Maybach vehicles. Although the Maybach has a great look, critics often complained that there wasn’t enough change to distinguish it from its much, much cheaper Mercedes Limo rivals. The models ceased production in 2013, due to continued financial losses for the marque, and sales at one-fifth the level of the profitable Rolls-Royce models. Rolls Royce vehicles tend to have better residuals too although some of them are also likely to tank in value.
VW Phaeton W12
Those of you familiar with the Phaeton won’t be particularly surprised by this one. First introduced in 2003, the 444 horsepower W12 Phaeton silently revolutionised the way Volkswagen build their vehicles. The vehicle was a pet project of Ferdinand Piëch, the then chief executive of Volkswagen. The idea was supposed to be a showcase of the quality, engineering and design of Volkswagen. The base MSRP was $94,600 back then, with the biggest markets being China, South Korea and Germany. Sales were rather dismal in America, with less than 2400 being sold in total! American consumers were confused by the badge, with Volkswagen not being a luxury marque, despite being based on the same platform as the Audi A8 and being rather more intelligently designed than that vehicle. Luckily for used purchasers, it makes for an incredible bargain now!
If you bought one of these bad boys new, you better have made sure you enjoyed it as much as possible. The 2006-gen cars, which are notoriously unreliable, have plummeted from around $95,500 originally to $25,000 now. Worse still, it’s the dealership depreciation that gets you on this car. Drive it off the lot and you will lose thousands immediately. Later gen cars have better residuals, although they still depreciate more than some other brands. With a roaring V8 Engine, rear wheel drive and fantastic looks, the Quattroporte is a remarkable vehicle in more ways than one. The sluggish automatic gearbox does let it down, however, with the new-fangled double clutches making it seem dated.
It’s amazing what waiting a few years and 30,000 miles can achieve. The V8, twin-turbo rocket barge known as the M5 started at a $95,000 list price in 2016. A 2016 example with just 38k miles can now be yours for less than $40,000! 60% depreciation in 7 years! Spend a bit more and get a BMW approved used example, and you’ve got one fine machine with a warranty, with some other poor soul paying the depreciation. It’s often said that the first 3 years are the most costly with a vehicle, so by going nearly new, it could work out pretty well for you. The M5 is a brilliant vehicle too, easily mappable up to a supercar beating 600hp! Drifts, drag racing and family duties are all taken care of!
Jeep Cherokee Trailhawk
The Cherokee is Jeep’s response to the compact SUV market, predominantly cars like the Audi Q5, VW Tiguan and BMW X3. It’s not a bad vehicle, but its German rivals outshine it in terms of comfort, reliability and with the V6 model, fuel consumption. According to motoring magazine Whatcar, the Jeep Cherokee Trailhawk loses a staggering 76.7% of its value in the first 3 years! Priced brand new at £41,290 ($52,643), the Cherokee 3 years later is worth on average just £9500 ($12,248). An astonishing loss of over $39,000! If you want a Jeep Cherokee Trailhawk, just buy it at 3 years old and save the money!