In today’s car market, consumers are often making several key considerations. First is the type of car that they would buy. Nowadays, there a growing preference towards SUVs and pickup trucks. Aside from this, car buyers also like to go over the various safety features available in all models. Finally, they also tend to be interested in the car’s onboard technologies, particularly the ones that are used for communication, information, and entertainment.
Aside from these factors, there are also car buyers who consider their car’s price. Especially when your budget is tight, you have to narrow your car choices down to a certain price range to make it much easier for you to shop. And while there is nothing wrong with getting a great car for a good price, keep in mind that a low selling price would not be good for the car’s potential resale value in the near future.
The moment you buy a car and you drive it out, it becomes subject to a lot of depreciation. In fact, according to a report from Trusted Choice, a car’s value is immediately reduced by 11 percent the moment you drive it off the lot. Meanwhile, the Houston Chronicle reports that a car suffers a depreciation of around 20 percent during its first year on the road. After this, the car would continue to depreciate by around 15 percent in the succeeding years. Hence, when the car finally reaches its tenth year, it would only be worth around 10 percent of its original value.
Curious to find out which cars will lose a great deal value in a span of just five years? We’ve listed 25 of them so you can see how much less they will be worth in the future.
25 2018 Kia Rio
First up on our list is the 2018 Kia Rio. Today, it has quite an affordable price of $13,900, which is good news if you’re looking for a new car on a tight budget. However, a value this low is not good if you are looking for a car that will maintain decent value in the years to come. In fact, based on the average depreciation rate of 20 percent during the first year, the 2018 Rio’s value would go all the way down to $11,120 after the first year alone. Meanwhile, after a second year, this would go further down to $9,452.20 due to an estimated depreciation rate of 15 percent. And as the car reaches its fifth year, its value would only be $5,804.71.