We’ll venture the bold assumption that you’ll want to sell your car for as much money as you can. You want to recover as much of the cost of the investment as you can because it was expensive. All cars lose value over time, but some do it more quickly than others.
IntelliChoice calculated the average retained values for a brand’s full model portfolio over a five-year period to find out. These estimates allow us to identify which manufacturers’ vehicles have better depreciation resistance. Let’s talk about the automobile brands that lose value more quickly now that we’ve determined which ones do so the best.
In This Article...
Mini: 50.4 Percent Retained Value
A fairly, well, small percentage of drivers are drawn to Mini automobiles because of its size, which lives up to its name. Models with charming aesthetics and nimble handling, like the retro Cooper, sporty Countryman crossover, or funky Clubman wagon, attract drivers with an eye for fashion and a sense of adventure but, more crucially, who can manage their diminutive dimensions. However, doubts about future worth may put buyers’ first enchantment to rest. The Countryman and Clubman receive a Poor five-year cost of ownership rating from IntelliChoice. Furthermore, we weren’t too impressed by the brand’s recent attempts at electrification. As joyful as Mini’s cars are to look at and drive, the brand’s market position is indicated by its value retention rate of 50.4%.
Mazda: 49.3 Percent Retained Value
Mazda doesn’t compare to other Japanese brands in terms of name recognition, lineup diversity, or value despite producing some of the best-looking and best-driving mainstream cars on the market. Even though the Mazda3 and Miata have sizable fan groups, those and other models may place a greater emphasis on driving characteristics than general utility. The Mazda6 lagged behind rival sedans until it was recently discontinued, while the CX-30 and CX-9 are less adaptable than rival crossovers. Although we usually love driving a Mazda, its value retention rate of 49.3 percent isn’t as high as that of its primary rivals. Possibly the brand’s next, higher-end vehicles will hold their value longer.
Kia: 47.7 Percent Retained Value
Kia has put a lot of effort into keeping up with its rivals in terms of quality, dynamics, and design. Want proof? The Sorento is back and even better than before, the Telluride won our competition for SUV of the Year, and the Optima’s makeover into the K5 gave this sedan new life. However, despite their appeal in other areas, Kia’s automobiles behind with an average value retention rate of 47.7% during a five-year period. Despite its extensive standard warranty and genuinely enticing options, that is the case. Even while we enjoy driving the Telluride and the sporty Stinger, Kia still needs to improve as evidenced by their respective Mediocre and Poor IntelliChoice scores.
Hyundai: 47.1 Percent Retained Value
Hyundai strives to match the reputation for quality and durability of Toyota and Honda, much like its corporate rival Kia. The long-term value proposition of Hyundai doesn’t appear to have been significantly impacted by a lengthy warranty or a group of very regarded experts. Models like the Sonata, Palisade, and Tucson serve as indicators of how far the brand’s products have come. However, Hyundai’s 47.1 retained value % suggests that it needs to do more to earn the trust of customers who value their money.
Volkswagen: 46.9 Percent Retained Value
Volkswagen’s image for quality suffered as a result of the Dieselgate incident, even though the company didn’t have a very strong one to begin with. Volkswagen lacks American and Asian rivals in mass-market appeal, even with more recent models like the Tiguan or Atlas, which only manage Average or Mediocre IntelliChoice value scores depending on trim. A shorter warranty is detrimental to its cause. Volkswagen is planning a number of electric vehicles, which might assist the company’s current 46.9% value retention percentage.
Nissan: 45.6 Percent Retained Value
Nissan has struggled to gain momentum and maintain its competitive position after a high-level organizational restructuring. It is currently working on refreshing its stale lineup. We were impressed by some of those efforts, like the Rogue and Sentra. Others, such as the legendary Z sports vehicle or the Pathfinder, stop at simply spiffing up antiquated platforms and engines. Despite the merits of Nissan’s engineering advancements, only a small percentage of its vehicles receive Good IntelliChoice value scores; the majority are ranked at Average, Mediocre, or Poor in terms of ownership costs. Nissan has a dismal 45.6 percent average value retention over a five-year period.
Buick: 42.3 Percent Retained Value
What does Buick mean today? Buick doesn’t seem to be confident in itself. Due to the brand’s current inventory consisting solely of SUVs, its tradition of opulent vintage sedans has come to an end. All of those models aren’t particularly terrible, but they don’t do much to change the outdated perception of Buick. Additionally, Buick’s uncertain positioning does not help. Does it aim for real luxury to compete with the best in the field, or does it aim for a premium experience at entry-level pricing? We believe Buick requires revival and a more focused course. If and when it occurs, it might improve the lineup’s average value retention, which is 42.3 percent.
Mitsubishi: 41.3 Percent Retained Value
Many of the Mitsubishi vehicles we’ve evaluated are affordable, but not just financially. We’ve encountered subpar engineering and craftsmanship in Mitsubishi cars, which leads to dull driving experiences. The Mirage and Eclipse Cross are among the least expensive options in their respective sectors, which is obvious from their flimsy construction and crude driving characteristics. The previous Outlander’s available electric driving range deserves praise, but the revised three-row SUV falls short of expectations. Mitsubishi’s value retention rate of 41.3% is significantly lower than that of other brands. Every other Mitsubishi has a Mediocre or Poor IntelliChoice ownership rating, leaving just the outdated Outlander Hybrid.
Chrysler: 40.2 Percent Retained Value
Any carmaker would find it challenging to maintain a two-model lineup, especially if those options are designed to compete in some of the least-wanted segments of the market. But Chrysler is going in that direction. Despite having advantages of its own, the 300 sedan and Pacifica minivan just do not appeal to the tastes of contemporary drivers. Only a layer of gradual improvements can hide the 300’s deterioration. Considering that it is a minivan, the Pacifica (and its fleet-only Voyager counterpart) is actually rather decent. Although Chrysler’s future is uncertain, introducing models that are contemporary in design could increase the lineup’s average value retention rate of 40.2%.
Fiat: 39.5 Percent Retained Value
Fiat’s tiny, quirky cars briefly appeared ready to inject some Italian panache into the compact car market. But that period has passed, and it is now clear that Fiats are less attractive than they once were. The 500X subcompact crossover is the only vehicle currently offered by the brand. Its cute design and standard AWD can’t make up for its sloppy driving manners and shoddy construction. Fiat’s abysmal 39.5 percent retention rate is the weakest among major brands because the 500X symbolizes the complete lineup.
Why is a secondhand KIA so inexpensive?
Why are KIAs so inexpensive when they are regarded for having a comfortable ride, a respectable new-vehicle warranty, and lots of cargo space?
Each automobile owner has a reason(s) for favoring a particular brand’s model. While some people are seeking the excitement and speed, others are searching for a reliable car for their family. The features you require, how the car is made, and the brand will all affect how much it costs. While some purchasers aren’t concerned with the vehicle’s price, others will focus on the perks that come with the cost.
KIAs are affordable since the raw material for their car bodies is plastic. As they are designed to survive five to seven years, they have a short production line and a bad image as disposable cars. Another factor contributing to KIAs affordability is the cheap cost of labor.
The company’s entry into the United States wasn’t easy, and most people thought of KIA as a budget brand with subpar automobiles. But over time, the Korean business has worked to disprove these allegations by spending money on production and research to demonstrate KIA’s dependability.
Continue reading to find out why KIAs are so affordable and whether you should buy one.
Here is what we learned after conducting our investigation and speaking with numerous professionals in the field of vehicle production.
Do Kia automobiles lose value?
In terms of resale value, Kia, I wouldn’t want to be you. When compared to other well-known automakers, Kia is in the bottom half. The Soul model, which placed in the top 25 of all models for value retention, is the exception for Kia. The Sorento, Sedona, and Cadenza, a trio from Kia that ranks last for overall depreciation by year 5, are what detract from the brand.
Our top choice for the KIA model year that offers the best value is the 2020. With the 2020, you would only pay, on average, 85% of the price as new, and the car would still have 83 % of its usable life.
For the KIA models, the 2019 and 2018 model years are also appealing and offer a fair price. Our rankings take into account a number of variables, such as the original new price, the current price, maintenance expenditures, and the remaining years of anticipated overall spending. With a KIA model, the top-ranked model year offers the best value for the money.
Which automaker’s resale value is the lowest?
Depreciation is more expensive than insurance, maintenance, and repairs combined when it comes to buying a new car. The typical vehicle has a 47.6 percent resale value, according to research we conducted with IntelliChoice on how much value a car is expected to keep after five years of ownership. The worst car on this list only holds onto a little more than 25% of its value after five years, so if it cost $50,000 to buy, it would only be worth $12,500.
BMW 530i
The 600-hp BMW M5, which has a 44.1 percent resale value, is your best option if you want a 5 Series that will maintain its value. The four-cylinder 530i, which has the least performance-oriented option, is expected to lose just 38.5 percent of its value.
We had the opportunity to accompany a 530i for a year, and even if it fell short of BMW’s claims to be the world’s best driving vehicle, we nonetheless referred to it as “a fine, stylish luxury sedan” in our review. Although the four-cylinder is quite effective, it has always seemed inadequate for a vehicle the size of a 5 Series. The 530i functions best as a fast cruiser with comfortable seats, a smooth ride, and an excellent sound system.
Alfa Romeo Giulia
Despite the fact that we have had no problems with our Giulia over the past year, Alfa Romeo and other Italian automakers’ reputation for unreliable products seems to have destroyed the resale value of this little luxury sedan. The 2021 Giulia is anticipated to hold onto just 38.5 percent of its initial value after five years.
We are concerned that Alfa may decide to discontinue producing the new Giulia, which would be unfortunate because this is a fantastic sport sedan. Our judges were overwhelmingly thrilled by the Giulia, which took home our 2018 Car of the Year title for its alluring look, fantastic dynamics, ride comfort, lightning-quick steering, and torquey turbo-four.
Volvo V60 T5
While the market doesn’t seem to think the same way about one Volvo wagon, we love station wagons for their capacity to tote as much baggage as some SUVs while maintaining the superior design and driving qualities of a sedan. One of the few wagons left on the market in the United States is the Volvo V60, and the base-engine V60 T5’s anticipated five-year resale value is only 38.4%.
The Swedish elegance and Thor’s Hammer daytime running lights that have come to characterize Volvo’s style in recent years are both present in the V60, making it a beautiful vehicle to look at. A strong suit is interior design. Even though plug-in hybrid and more potent gas powertrains are available, we really choose the standard T5 engine due to its superior overall performance and refinement compared to the alternatives. Yes, it will lose value over time, but keep buying these brand new so Volvo can continue to market them.
BMW M850i Gran Coupe
The middle-tier four-door M850i Gran Coupe, the second of four BMWs on this list, depreciates the most rather than the coupe, convertible, or entry-level 8 Series. It has 523 horsepower. The M850i Gran Coupe is expected to keep 38.2 percent of its value after five years of ownership. (For what it’s worth, the M850i coupe and convertible follow closely after with resale values of 38.4 and 38.5 percent, respectively, while the M8 Gran Coupe has a resale value of 38.6 percent.)
The 8 Series Gran Coupe may be the most coveted vehicle in the lineup of BMWs, according to our evaluation of it for our 2020 Car of the Year competition. The interior’s sea of leather and abundant electronics amaze, and the sheet metal and proportions are achingly beautiful. With its low riding position, precise handling, and potent power output, it is also a delight to drive. If you can handle the loss in value, this BMW is a great choice.
Cadillac CT5
The Cadillac CT5, a luxury automobile with a lower price range, also has trouble maintaining its initial worth. Its resale value after five years of ownership equals 38.1 percent, according to IntelliChoice.
That is not to imply that Cadillac’s CTS successor is a subpar vehicle. There are redeeming aspects present despite the interior’s inconsistent material quality, unimpressive turbo I-4 base engine, and ungainly profile. The CT5 offers a ton of rear seat space when compared to other vehicles in the market, and we’re big fans of GM’s user-friendly infotainment system.
Mitsubishi Mirage G4
Even more difficult to justify is the Mitsubishi Mirage. The Mirage G4 sedan is a subpar car that loses only 38.1 percent of its value over time (39.8 percent if you choose the hatchback).
The Mirage’s best selling feature is its inexpensive beginning price of about $17,000, but that advantage wanes when a substantially superior Honda Civic has a lower five-year cost of ownership because of its higher resale value. The teeny-tiny sedan from Mitsubishi gets marks for being the most fuel-efficient non-hybrid vehicle on the market, but you should certainly avoid it due to its subpar interior, terrible ride, and weak, underpowered engine.
Honda Clarity Plug-In Hybrid
The Honda Clarity Plug-In is the first of six plug-in hybrid or electric vehicles on our list, which is unfortunate for new buyers (or excellent news for environmentalists buying the secondhand market). Only 37.0 percent of the Clarity’s original value is expected to remain after five years of ownership.
The Clarity is a compelling option as a reasonably priced plug-in with 42 miles of electric range, plenty of interior space, and assured handling, but the rest of the package isn’t as alluring. The Clarity’s outdated infotainment system by Honda appears antiquated in comparison to more contemporary options, and the car is boring and noisy when the gas engine starts.
Volkswagen Arteon
We shouldn’t be shocked that the Volkswagen Arteon is having trouble maintaining its value given that it has a starting price of close to $40,000. Based on IntelliChoice’s statistics, the Arteon is predicted to have a 36.8% resale value after five years of typical ownership.
This striking fastback has svelte Audi styling at a Volkswagen price, but that isn’t its only advantage. Six-foot passengers may sit comfortably in the back seat, and the cargo area equals that of some small SUVs. Additionally, the ride is comfortable. But performance is poor, options are expensive, and the interior can’t match the elegance of the sheet metal.
Volvo S90 Recharge T8
Even Volvo’s top-of-the-line S90 sedan struggles with depreciation. The worst offender is the top-of-the-line Recharge T8 plug-in hybrid model, which is predicted to lose 35.8% of its value after five years.
Having said that, we think highly of the S90 T8. With 400 horsepower, the T8 is fairly speedy for a vehicle of its size and weight while maintaining the airy, comfortable elegance we have come to expect from contemporary Volvos. For those looking at midsize luxury sedans, the ride quality is controlled but can be on the stiffer side. Although there is more drivetrain vibration than we would want or anticipate coming through the steering wheel, this cruiser is nonetheless well-done.
Genesis G90
In our full-size luxury sedan rankings, the Genesis G90 sedan fares better than the BMW 7 Series and Lexus LS, but it is in no way a guarantee of a high resale value. The flagship Genesis will only hold on to 35.3% of its original value in the case of the top-spec G90 Ultimate with its 5.0-liter V-8.
We love the G90’s updated look for the 2020 model year, especially the amazing wheel design. There are no athletic aspirations interfering with the G90’s ride quality, making it as comfortable and plush as you would anticipate in this market. We simply wish that the inside, which is still beautiful but feels a few years behind the competition, had received the same attention paid to the outward upgrade. The V-8 is also unimpressive because it doesn’t offer much in the way of aural intrigue or performance improvement over the original twin-turbo V-6.
BMW 745e
It turns out that the Genesis sedan depreciates less than the flagship sedan from BMW. The BMW 7 Series retains the least value in its plug-in hybrid configuration, along with the Volvo S90. The resale value of the 745e is only 34.3 percent, compared to 35.1 percent for the V-8 750i and 41.6 percent for the pricey, 12-cylinder M760i.
The 7 Series, and the 745e in particular, are praised for their quiet, comfortable ride, refined powertrain, and premium materials. In contrast to the cabins in the 7’s German rivals, the interior feels unmistakably dated, and we described the dynamics as “as soft and pillowy as an old Buick.” The “ultimate driving machine” experience is nonexistent, just like with the 5 Series. And that grille is just too much, too.
Audi A8 Plug-in
Evidently, if you want to prevent large depreciation, it might not be the greatest idea to purchase a plug-in hybrid flagship luxury automobile. Even less value than the 745e is retained by the Audi A8 plug-in model, at just 34.1 percent. At 34.4 to 35.0 percent, conventionally powered models are not far behind.
Don’t, however, assume that the A8 isn’t worthwhile to acquire. Our full-size sedan rankings are led by Audi’s flagship four-door, which excels in every category thanks to its luxurious interior, great technology, and smooth ride. This is about as well-executed as a luxury sedan can be, despite the active safety technology’s shortcomings and our distaste for the numb steering.
Chevrolet Bolt
It turns out that purchasing a fully battery-powered item can really be worse. The five-year resale value for the 2021 Chevrolet Bolt EV is a dismal 29.7%. That might be connected to the launch of the updated 2022 Bolt, which will be $5,500 less expensive than its predecessor.
We’re great fans of the Bolt, so the low resale value is also disappointing. We dubbed it our Car of the Year when it debuted for the 2017 model year. The Bolt impresses as a competitively priced EV with a range of 259 miles, and when you’re on a twisty road, its precise steering and powerful, linear acceleration make it a pleasure to drive. There have been issues with the cabin’s heavy reliance on hard plastics and the strange way the brakes feel.
Nissan Leaf
We’re not shocked that the Nissan Leaf’s depreciation is worse than the Bolt’s because it is an objectively worse EV. The second-worst of all vehicles on the market, Nissan’s version of the accessible electric hatchback is predicted to keep 28.1 percent of its value after five years of ownership.
Although the Leaf has redeeming aspects, it simply cannot compete with the current generation of EVs. Maximum range of 226 miles isn’t really impressive, and the steering, ergonomics, and strange brake feel erode confidence. There are only a few benefits of the Leaf over a standard Tesla Model 3 of comparable price: It is sold all around the country and is eligible for a federal tax credit, whereas the Tesla is still unavailable in select states.