Don’t Buy These 5 Cars If You Plan To Resell
While some cars can appreciate over time, most drop in value as they age — with some vehicles more prone to this than others. That’s why it’s crucial to understand a car’s resale value before purchasing, especially if you’re on a budget.
Visit: 10 New Cars To Avoid Buying in 2024
Explore: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Keep reading as we explore some cars with the worst resale values you should avoid if possible.
Nissan Leaf
Electric cars have been in high demand for the past several years. States like Oregon, California, New York and others have indicated they will no longer sell gas-powered cars by 2035, further increasing demand. And even though electric vehicles can be better for the environment, they’re not all worth the price tag.
The Nissan Leaf has long been a popular electric car model because of its modest price tag. However, according to CarEdge, the value of a Nissan Leaf will depreciate 44% after five years. This is primarily due to advancements in technology and battery degradation.
“Battery degradation is the main reason the Nissan Leaf struggles in terms of resale value,” says Joe Giranda, director of sales and marketing for CFR Classic.
“Over time, batteries wear out, and this is true for all electric vehicle types, which heavily rely on battery health.” According to Giranda, loss in battery capacity can lead to reduced range and makes the Leaf less attractive on the secondhand market.
He says this is especially true of earlier versions of the car. Giranda added that this “can leave potential buyers worried over the high cost of replacement or repair for these units.”
Read More: 6 Hybrid Vehicles To Stay Away From Buying
Land Rover Range Rover
When most people think of luxury SUVs, Land Rover immediately comes to mind. While these are stylish cars, they often have reliability issues and low resale value. While new Range Rovers sell for around $131,000, data from CarEdge shows the vehicles are only worth roughly $57,600 by year five. That’s a massive 56% depreciation.
“Land Rovers tend to have major problems before they get very old, which is one reason their resale value is so low,” says Melanie Musson, a vehicle industry expert with AutoInsurance.org. “If you’re buying a used Land Rover, you can almost count on some expensive repairs, so you can’t spend as much money on the vehicle.”
Toyota Mirai
While electric cars have been popular and the infrastructure has been expanding rapidly across the country, the same can’t be said about hydrogen. The Toyota Mirai has lured customers with its 400-mile range per hydrogen tank, considerably higher than many electric cars.
Plus, Toyota has offered attractive perks to new car buyers, including a $15,000 fuel card or six years’ worth of free fueling, whichever comes first. Unfortunately, due to the lack of infrastructure for hydrogen, the appeal dwindles as the car ages.
Mitsubishi Mirage
Did you forget about the Mitsubishi Mirage? Yes, they’re still making them, but their resale value leaves little to be desired. The car is known for having a poor ride on the road, and its 78 horsepower engine isn’t attractive to many drivers.
“The Mirage might boast great fuel economy, but its cheap interior and underpowered engine make it feel more like a toy than a car,” says John Lin, the co-founder of JB Motor Works.
He added, “Resale values plummet as buyers opt for more substantial vehicles.”
Tesla Model S
We’ve already discussed the issues with electric cars and their inability to retain value. Alongside the Nissan Leaf is the Tesla Model S, which depreciates 35% after five years according to CarEdge — among the worst for Tesla models. Most of this is attributed to battery degradation and the massive government tax credits that lowered the car’s initial price.
“Electric vehicles, in general, have a poor resale value, but the Tesla Model S depreciates even more than the EV competition,” says Musson. “Part of the issue with EVs is that their batteries have a lifespan, and the replacement cost is extremely high. So, people don’t want to buy an EV that feels like it’s ticking to the end of its lifespan every day.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Mechanic: Don’t Buy These 5 Cars If You Plan To Resell
