Buying a new car can be an expensive investment, but a recent study conducted by iSeeCars suggests that purchasing a lightly used vehicle can result in significant cost savings. The study highlights the top 20 cars that offer the greatest depreciation after just one or two years of ownership, with some models depreciating by almost 50 percent. Electric vehicles, in particular, have a strong presence on this list, with the Mercedes-Benz EQS standing out as a top contender with a depreciation rate of 47.8 percent. The study also reveals that EV values are dropping at a rate ten times faster than traditional gas vehicles, with Tesla leading the way in driving down prices in the used car market.
1. Mercedes-Benz EQS
The Mercedes-Benz EQS tops the list with an impressive depreciation rate of 47.8 percent after just one year of ownership. This translates to a savings of approximately $65,143 off its original price, making it a lucrative option for buyers looking for a luxury vehicle at a discounted price.
2. Electric Vehicle Dominance
Electric vehicles feature prominently in the top 20 list, representing half of the most depreciated models. The Nissan LEAF, Kia EV6, and Hyundai IONIQ 5 are among the EVs that offer significant cost savings when purchased lightly used. With EV values plummeting faster than traditional gasoline cars, buyers have a unique opportunity to snag a deal on these eco-friendly vehicles.
3. Land Rover Range Rover Appreciation
While most cars experience depreciation, the Land Rover Range Rover stands out as a model that actually appreciated in value after one year of ownership, averaging 2.8 percent higher than its new price tag. This anomaly showcases the uniqueness of certain vehicles in the market and highlights the importance of conducting thorough research before making a purchase.
4. Factors Influencing Depreciation
Various factors contribute to a vehicle’s depreciation rate, including market demand, brand reputation, and technological advancements. Understanding these factors can help buyers make informed decisions when selecting a car to purchase. Additionally, conducting research on specific models and their depreciation trends can maximize cost savings in the long run.
5. iSeeCars Study Methodology
The iSeeCars study analyzed over 1.6 million new and used cars to identify the top 20 vehicles with the highest depreciation rates. The definition of “lightly used” included vehicles from the years 2022 and 2023 with odometer readings within 20 percent of 13,476 miles. By comparing used prices to new selling prices, the study calculated the percentage difference in depreciation for each model. Excluding low-volume vehicles and those discontinued as of 2023 ensured a focused analysis of popular and current car models.