10 Cars That Drop in Value the Second You Drive Them Off the Lot Jarret HendricksonOctober 4, 2025 at 9:32 PM 0 Why pay so much for something that gives so little in return? A high depreciation rate can render an otherwise good vehicle purchase into an unwise money move for car owners.
- - 10 Cars That Drop in Value the Second You Drive Them Off the Lot
Jarret HendricksonOctober 4, 2025 at 9:32 PM
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Why pay so much for something that gives so little in return? A high depreciation rate can render an otherwise good vehicle purchase into an unwise money move for car owners. And drivers can especially regret purchasing one when it comes time to sell or trade it in, as you'll likely receive less money than expected.
While some models have notoriously bad depreciation rates, there are certain vehicles that smart consumers should consider avoiding altogether if they prioritize resale value. Here are 13 types of cars that lose their value the fastest.
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1. Luxury vehicles
Luxury cars face higher rates of depreciation because of their initial hefty price tags. Part of this stems from the fact that as technology advances, many of the initially cutting-edge features in luxury sedans quickly become obsolete.
With such a significant decrease in their overall value compared to regular vehicles, luxury vehicles often have pitiful resale value.
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2. Electric vehicles
Electric vehicles lose a whopping 58.8% of their initial value after five years, according to an iSeeCars study. While electric cars do feature some of the most up-to-date technology the automotive industry has to offer, this also causes them to have serious reliability issues.
Because their technology is so new, fixing these vehicles is much more difficult than traditional gas-powered vehicles. It's often harder to find technicians who are qualified to work with them, which can lead to higher repair costs. Ultimately, this results in greater depreciation.
3. Discontinued model lines
Vehicles from discontinued model lines are generally going to be more expensive and difficult to maintain or repair because their replacement parts are no longer readily available. It also might be harder to come by mechanics who know how to fix them.
With this in mind, dealerships and private buyers will not be inclined to make an offer on these vehicles that would be worthwhile. Their poor resale value makes them a poor investment.
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4. Certain German luxury brands
German luxury cars are pretty much synonymous with expensive trips to the dealership. One reason for their high maintenance costs? German luxury brands use their own specialized in-house technicians.
Additionally, replacement parts often have to be specially ordered from Germany. While the Germans are known for their amazing engineering, it can be incredibly complicated to maintain and repair these vehicles.
Unfortunately, the costs associated with this cause these vehicles to depreciate at an alarming rate.
5. Vehicles with poor reliability ratings
No one likes frequent trips to the mechanic, but that's what consumers are getting themselves into when they purchase a vehicle with poor reliability scores. Since these vehicles are likely to have higher maintenance costs, their value tends to plummet like a lead balloon.
Car owners hoping to score a better deal on a trade-in when they are shopping for their next vehicle should steer clear of cars with poor reliability scores that fail to retain significant value.
6. Cars with expensive repair costs
If a vehicle costs an arm and a leg to repair, buyers will be reluctant to purchase one, making it less valuable to its owners.
Between sky-high maintenance and repair costs and their limited resale value, consumers should avoid cars with expensive repair costs.
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7. Models with oversupply issues
If automakers produce more of a certain model than what the car-buying public is interested in purchasing, those vehicles will have dismal value. Simply put, too much supply with too little demand is a value killer.
As a result, the only way to sell them is to offer them for dirt cheap, which means that vehicles that already had little value to begin with will become practically worthless as they depreciate.
8. Vehicles with outdated technology
Consumers who are worried about vehicle depreciation should avoid purchasing one with outdated technology. The more new automotive technology that gets released, the more rapidly vehicles with outdated technology depreciate.
As outdated technologies get phased out, trying to repair them can also become more difficult, making them less valuable. This inability to retain their value makes them poor investments for car owners.
9. Cars with certain colors
Black, white, and gold cars lose more of their value on average than vehicles of other colors. Vehicles in these shades will lose over $15,000 after three years, according to an iSeeCars study.
When it comes to black and white cars, those colors are so common that they offer little distinction or value in the used car market.
Drivers who want their car to be a good investment should consider purchasing one with a color that stands out more and therefore depreciates less, like orange or yellow.
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10. High-performance sports cars
Everyone dreams about pulling up to a Cars and Coffee meet in an exotic high-performance sports car, but for the average driver on a budget, these impressive dream machines are poor investments.
The enemy here is mileage. There is a direct correlation between the odometer and a sports car's depreciation. The lower the mileage, the higher its value, and buyers often seek sports cars in pristine condition with lower mileage.
In addition, these vehicles are also more expensive, which means they lose a larger dollar amount of value in the first few years of ownership.
Bottom line
Vehicles are expensive and often costly investments for consumers. Especially with their rapid depreciation, financially prudent drivers should consider purchasing trucks or hybrid vehicles, which have better-than-average depreciation rates, according to an iSeeCars study.
Just like financially savvy car owners can get multiple quotes or bundle to find a cheaper auto insurance policy, car buyers should do their research to find vehicles with better depreciation rates.
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