Everyone has heard or read about how much value a new vehicle loses as soon as the proud owner drives it off the dealer’s lot. Not all vehicles are created equal, however.
The overall average difference between the price of a new car and the price of a one-year-old car was 28.6%, or about $7,650. That’s how much value that vehicle lost in just one year.
The researchers also found nine vehicles that could be purchased new for a lot less than that average difference. One, the Jeep Wrangler Unlimited, lost just 8.9% ($3,199) of its new-vehicle price after one year.
To get that number, researchers at iSeeCars.com analyzed more than 6 million sales of new and used cars between August of last year and January 24, comparing the prices of new cars to a one-year-old version of the same model. Company CEO Phong Ly commented:
Instead of buying a car that’s been driven for one year, consumers can buy the new version for just a few thousand dollars more and take advantage of the latest and greatest technological and safety features. When spread out over the length of a car loan at an average of 5.5 years, the slightly increased monthly payments can be offset by the added warranty and dealer incentives.
Interestingly, of the nine vehicles that made the list, four are pickup trucks and four more are sport utility vehicles. The lone passenger car is really a sports car. Here’s the list, including the percentage and price premium for a new vehicle compared to a one-year-old version of the same model.
- Jeep Wrangler Unlimited: 8.9% premium for new, or $3,199
- Toyota Tacoma: 10.4% premium, or $3,320
- Toyota 4Runner: 12.7% premium, or $4,605
- Nissan Frontier: 13.3% premium, or $3,180
- Honda Pilot: 13.7% premium, or $4,858
- Chevrolet Colorado: 13.7% premium, or $4,154
- Honda HR-V: 13.8% premium, or $2,885
- Jeep Renegade: 14.1% premium, or $2,897
- Subaru WRX: 14.2% premium, or $4,115
iSeeCars.com also looked at the vehicles that lost the most value after one year of ownership. The researchers found eight that lost significantly more than the average first-year loss of $7,654. These are virtually all luxury models, so if you are in the market for a luxury vehicle, you can save a significant amount of cash by buying one that is a year old.
Here’s the list, including the percentage and amount of savings when buying a year-old vehicle compared to a new model.
- Cadillac XTS: 38.7% savings, or $20,965
- Jeep Compass: 34.8% savings, or $9,652
- Mercedes-Benz E-Class: 34.5%, or $22,919
- Lincoln MKZ: 33.7% savings, or $14,328
- Cadillac CTS: 33.4% savings, or $18,170
- Infiniti Q50: 32.2% savings, or $14,654
- Toyota Camry: 30.7% savings, or $8,213
- Kia Sedona: 30.0% savings, or $9,682
For more details and insight, visit the iSeeCars.com website.
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
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