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Saturday, June 21, 2014

Don’t Plan on Reselling: These 10 Cars Depreciate Fast

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@ WALL ST. CHEAT SHEET  

 
 
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For many, part of buying a new car is taking into consideration how much the car will be worth once it’s been used through its useful life with its first owners.

 Companies like Toyota, Subaru, and Honda are renowned for commanding impressive resale values, as is Porsche, and some other brands as well.

 However, when it comes to the cars that depreciate the fastest, don’t think of Jeep Wranglers, Honda Odysseys, Toyota FJs or other vehicles that are designed to be used and abused.
The fastest depreciating models are often high-end luxury cars that once commanded six-figure price tags but now sell for a fractional portion of what they once were able to generate.
 
 Over the years, many models lose more than half their value at least — as much as 60 or 70 percent in some instances.
 
They still won’t be “cheap,” but if you’ve ever dreamed of owning a Bentley, it’s definitely worth looking into the used market.
 
So if a new econo-box isn’t fulfilling your need for prestige, or you have some money but not that much money to blow on a luxury label, check out the ten vehicles that have been hit especially hard by the cruel passage of time.



BMW 740Li

1. BMW 7 Series

There’s no doubt in most peoples’ minds that BMW (BAMXY.PK) makes a fine automobile, and the 7 Series is a testament to Bimmer’s exceptional craftsmanship.

When it comes to holding its value, though, the 740i in particular leaves a bit to be desired; production of that model ended in 2001, and at the time, cost well over $70,000 can be found for under $10,000 (a 1997 model with 105,000 miles on the clock is up for sale for under $4,000 in New Jersey).

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2. Bentley Arnage

Bentley strikes many as a defining character of automotive prestige, and there isn’t one model in the lineup that can be bought new for less than $100,000. Wait a few years though, and owning a Bentley soon becomes far easier for those not endowed with hundreds of thousands to spend on a new car; the Arnage sedan (a predecessor to today’s Mulsanne), can easily be found for less than $40,000 — effectively shedding about $160,000 off their showroom price. That’s still pretty steep for many, but considerably easier than the condo-like price it commanded when new.




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3. Maybach 57

Take the largest, most expensive Mercedes-Benz sedan available, add an even more refined interior, effectively double the price, and you’ve got yourself a Maybach.

 As a new car, these things would run for over $300,000, placing them on the same plane as the largest and most extravagant vehicles from Rolls-Royce; now, a 2004 Maybach 57 with just 29,000 miles can be purchased for $87,000, a decrease of about $213,000, or about eight and a half Volkswagen GTIs.



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Photo Credit: https://secure.flickr.com/photos/perfectzero/

4. Cadillac STS-V

The Cadillac (NYSE:GM) CTS-V is often cited as the poster child of the brand’s performance chops, but the STS-V wasn’t exactly a slouch either. With rear-wheel drive, a big V8 up front, and a luxuriously appointed and spacious cabin in between, it was the weapon Cadillac needed to take on the likes of the M5.

 When new, it ran roughly $77,090, though examples can be found these days for as little as $19,000, representing a loss in value of about $58,000 — enough to buy yourself a new Cadillac off the showroom floor.



VolkswagenPhaeton

5. Volkswagen Phaeton W12

Under the Audi (VLKAY.PK) brand, the Phaeton W12 likely would have done very well; however, people were not surprisingly jumping to part with the $94,600 that it demanded as a Volkswagen, even if it had a 6.0 liter behemoth under the hood.

Due to its struggle in the U.S. market (in did enjoy more success in its native Europe), the Phaeton W12 can now be bought for as little as $15,000, and still with less than 80,000 miles on the clock — a reduction in value of a hopping $80,000.

2009 Mercedes-Benz SL65 AMG

6. Mercedes-Benz SL65 AMG

There are few roadsters in the world that can outperform the massive Mercedes-Benz (DDAIF.PK) SL65 AMG on the road, but when it comes to resale value, that’s not exactly the case.

 The SL65 is very, very fast — the 2005 model in particular used a twin-turbo V12 — and it costed in the neighborhood of $185,000 at the time.

 Now, though, they can be found for as little as $41,000 (like this one in Arizona), a reduction in price of an incredible $140,000 off the showroom price in just nine years — a rate of loss of about $15,000 annually.

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7. Aston Martin Rapide

The Aston Martin One-77 will likely prove to be one of the most valuable cars the brand has ever produced in time, but the Aston Martin Rapide S, not as much. According to Top Gear, the Rapide — which starts at a lofty $250,000 or so — will lose about $160,000 worth of its value over just three years, or over $50,000 every year. Granted, it’s more of a ritzy family sedan and less of a collectible, so it may not be such a huge deal for owners.




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8. Porsche Cayenne Turbo

Porsche (POAHF.PK) is renowned for its investor-pleasing margins, and the price premiums that they command when bought new. However, as owners of the Cayenne Turbo SUV are finding out (specifically from the 2003 model year), they won’t hold onto those premiums forever.

New, the powerful SUV ran about $90,000 — making it one of the priciest in its class — but these days, buyers can pick up used models for as little as $20,000, as the Cayenne Turbo has shed about $70,000 worth of value over the last decade.

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9. Aston Martin DBS Convertible

When new, the Aston Martin DBS Convertible costs an atmospheric $325,000 or so dollars, but the car made it on Top Gear‘s list of the top ten depreciating cars of 2013, as it’s slated to lose over 100,000 pounds — $170,000 — of its value over just three years.

 Even the DBS’s reputation as a Bond car can’t help the model keep, it’s worth it seems, which is sad given that Aston’s are generally thought of as being a stronghold for longer-term value.



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10. Cadillac Escalade

Cadillac’s respected Escalade SUV might be worth $70,000-plus when it’s driven off the lot, but used models — even ones from 2010 — have trouble keeping up with half that.

 Go back five years further, and there’s a deluge of used Escalades that now command prices below $15,000 consistently — $8,000-$10,000 range, often, about a tenth of what the vehicles used to sell for when new.