12 cars you should buy used, based on depreciation rate
According to a study from iSeeCars, in some cases, you could save almost $20,000.
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A new study from Woburn-based iSeeCars finds that car shoppers can save thousands if they opt to buy certain cars when they’re one year old instead of brand-new.
The used car research company looked at more than 14 million new and used cars sold between August 1, 2015 and July 31, 2016 and found the average price difference between a new car and a one-year-old used car is 21.2 percent. They also found that waiting to buy a car slightly used can save consumers between $6,099 and $19,996.
“Most people know new cars depreciate the most in the first year and that different cars have different depreciation rates, but we wanted to determine which used cars experienced the largest price drops compared to their new models,” said iSeeCars.com CEO Phong Ly in a statement.
iSeeCars found that a dozen new vehicles saw their prices depreciate between 31.2 percent and 34.6 percent in a year, a rate that is 1.5 times greater than average. Ly says these vehicles tend to be less popular than their rivals. Also, half of the cars are luxury vehicles, which lose value at a faster rate than non-luxury vehicles.
But while these cars might be less popular than other vehicles, Ly pointed out that most get a four- to five-star rating from the National Highway Traffic Safety Administration.
“For example, the 2015 Cadillac ATS and Volvo S60 both received 5-star ratings across the board,” said Ly in the statement, “so consumers who are genuinely interested in these cars and highly value safety features can get a great bargain.”
Here are the 12 cars that iSeeCars recommends you buy used instead of new:
Fiat 500L
2017 Fiat 500L.
Base MSRP (2017 MY): $20,995
Price difference between new and 1-year-old used: 34.6 percent
Potential savings: $8,096
Lincoln MKS
2016 Lincoln MKS (2015 MY shown).
Base MSRP (2016 MY): $39,010
Price difference between new and 1-year-old used: 34.5 percent
Potential savings: $16,039
Volvo S60
2017 Volvo S60.
Base MSRP (2017 MY): $33,950
Price difference between new and 1-year-old used: 34.5 percent
Potential savings: $14,204
Kia Cadenza
2016 Kia Cadenza.
Base MSRP (2016 MY): $32,990
Price difference between new and 1-year-old used: 34.3 percent
Potential savings: $12,940
Mercedes-Benz C250
2016 Mercedes-Benz C250 (2013 MY shown).
Base MSRP (2015 MY): $39,400
Price difference between new and 1-year-old used: 34.3 percent
Potential savings: $15,247
Nissan Maxima
2017 Nissan Maxima.
Base MSRP (2017 MY): $32,560
Price difference between new and 1-year-old used: 34 percent
Potential savings: $12,469
Lincoln MKZ & MKZ Hybrid
2017 Lincoln MKZ.
Base MSRP (2017 MY): $35,170
Price difference between new and 1-year-old used: 33.8 percent
Potential savings: $14,177
Jaguar XF
2017 Jaguar XF.
Base MSRP (2017 MY): $47,450
Price difference between new and 1-year-old used: 32.3 percent
Potential savings: $19,966
FIAT 500
2017 Fiat 500 (500c pictured).
Base MSRP (2017 MY): $14,995
Price difference between new and 1-year-old used: 31.9 percent
Potential savings: $11,106
Cadillac ATS
2017 Cadillac CTS.
Base MSRP (2017 MY): $34,595
Price difference between new and 1-year-old used: 31.8 percent
Potential savings: $6,099
Chrysler 300
2017 Chrysler 300
Base MSRP (2017 MY): $32,340
Price difference between new and 1-year-old used: 31.7 percent
Potential savings: $13,351
Buick Regal
2017 Buick Regal.
Base MSRP (2017 MY): $27,065
Price difference between new and 1-year-old used: 31.2 percent
Potential savings: $11,525
At the same time, iSeeCars also found 10 cars that see a much smaller drop in price after a year than average. The company listed 10 vehicles that experienced a price difference of 7 percent to under 11 percent between a new model and a one-year-old used model.
The vehicles are mostly pickup trucks and SUVs. They include the Land Rover Range Rover, Toyota Highlander, Subaru Impreza, Subaru WRX, Subaru XV Crosstrek, Nissan Frontier, Honda Fit, GMC Canyon, Jeep Wrangler Unlimited, and the Chevrolet Colorado.
While these vehicles may offer consumers the assurance that their new car will have no history of problems, Ly said these cars will also lose value quickly.
“[Consumers] should keep in mind that they are still paying more for these cars new,” said Ly in the statement, “and they are literally dropping in value by thousands of dollars the moment they are driven off the lot.”
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