When shopping for a vehicle, take several factors into consideration. If you know you’ll only have it a few years, the vehicle depreciation rate matters.
When you lease, the payments you make are applied to the anticipated depreciation of the vehicle, meaning a higher depreciation rate will cause you to have higher payments. The same is true if you’re going to trade in the vehicle after only three years of driving. Here are the vehicles that have the highest depreciation rate for the first three years which should be a factor for you to consider when you’re ready to drive.
After three years, the Buick Enclave is a model that has an average price of $26,620 which is equal to a depreciation rate of 46.8 percent. That rate is 1.3 times higher than the average vehicle depreciation. The Enclave is an excellent choice for family driving and can be the right model for you, but you’ll want to hang onto it for a long time if you buy one.
Here’s another SUV that has a depreciation rate that’s 1.3 times higher than the average vehicle with a three-year reduction in value of 47.2 percent after three years. As one of the most popular models from Cadillac when it was offered new, this is an SUV that you’ll be able to find on the used market for a great price if you’re patient.
The A3 is one of the most popular models from this German brand and it’s built to be a car that’s offered at the right size for you. Even so, it depreciates at a rate of 1.4 times the average, as do many of the next models on this list, and it will lose 47.9 percent of its value after three years. The average price for an A3 after three years is only $21,120.
If you choose the Jetta as the car you want to drive and enjoy, plan to hang onto this model until it no longer operates at all. This car is one that depreciates at a rate of 48.1 percent over three years leaving a value of just over $13,000. This is a car that can be worthwhile to buy and keep driving, but might not be the right choice if you want to lease a vehicle.
The Chrysler 200 isn’t built any longer so you won’t have to worry about finding one as a new model, but you can look for a great deal in the used market. The 200 drops in value by 48.4 percent after three years to offer an average price of $14,011, making it an affordable sedan for you to drive when you find a used model with low miles.
The bull of the Ford brand is one that we’ve admired for many years, but if it’s the car you choose to drive, you’re better of keeping it for a long time rather than turning it in after a lease. The Taurus loses 49.7 percent of its value after three years which makes it a tough car to trade in and get much out of after a three-year term of ownership.
BMW 3 Series
The fact this car is one of the most popular models on the market makes the depreciation a bit of a puzzle, but the 3 Series loses 49.8 percent of its value after three years. Look for lease specials offered by a nearby dealership and you can save on the price. Otherwise, wait a few years and choose a used model that’s offered at a lower price.
The midsize model of the Mercedes-Benz sedan lineup is one that’s alluring, luxurious, sophisticated, and depreciates like a rock falling in a lake. The loss in value for this car after three years is 49.9 percent, which means you’re better off buying this model than leasing it when you choose one at your nearby Mercedes-Benz dealership.
With the Jetta as part of the list, the Passat was sure to make the cut as well. The fact that you’re going to have European driving manners, an admirable level of fuel mileage, and a vehicle you know you can trust for a long time means you should hang onto this car. Add in the fact it loses 50.7 percent of its value in three years and you’ll be driving it for a while.
BMW 5 Series
At the top of the list, and the only car that loses 1.5 times the average value, the 5 Series is a midsize luxury sedan that you need to commit to almost as strong as you do your spouse. This car loses 52.6 percent of its value in three years which means you won’t get much from it if you trade it in.