April 03, 2008

Oh, ouch

In my morning news summary, I had to follow an article entitled Ten Cars That Lose Value Fast, if only to feel superior enough to say, "Well I would never have purchased that." Of course they didn't just have a handy list (they want you to read the article and all) but they did have a slideshow so I made a list for you. According to the Kelley Blue Book Residual Value Guide, the typical new car loses 65% of its value over 5 years. Since both Kevin and I come from a background of people who buy a car and drive it into the ground for 20 years, I haven't always been up on these issues, but I was pretty surprised by the findings.

Kia Sedona (minivan) MSRP: $21,420, Five-year depreciation: 80% (OUCH!)
Lincoln Town Car (sedan), MSRP: $45,910, Five-year depreciation: 79% (I had no idea these were so expensive to start with!)
Isuzu Ascender (SUV) MSRP: $27,884, Five-year depreciation: 77% (I've never even heard of this car, but it's not my market)
Dodge Durango (SUV) MSRP: $26,455, Five-year depreciation: 76%
Ford Econoline (Custom full-size van), MSRP: $23,725, Five-year depreciation: 76% (I may give this one a pass since it's designed to be for a family of 12 and you can customize it and stuff)
Suzuki Reno (sedan) MSRP: $13,599, Five-year depreciation: 75%
Chevy Uplander (SUV) MSRP: $21,540, Five-year depreciation: 75%
Suzuki Forenza (sedan) MSRP: $14,249, Five-year depreciation: 75%
Mercury Grand Marquis (sedan) MSRP: $25,280, Five-year depreciation: 75%
Suzuki Aerio (sedan-ish) MSRP: $14,770, Five-year depreciation: 74%

That's gotta hurt.

Naturally I had to run over to the Kelley Blue Book and figure out the value of my own car. Mine is a 2000 Mazda Miata (MX-5) with very low mileage (49,000 miles) in "good" (not "excellent") condition. I bought it for $21,000. According to the Kelley Blue Book, it's current private party value is slightly over $10,000. Good news! My 8-year-old car is still worth only slightly less than half of what I paid for it. Phew!

Compare that to the Kia Sedona with its MSRP of $21,420 and it's 5-year value at $4,280. Yikes!

Posted by Shelby at April 3, 2008 09:50 AM

Any idea what the depreciation on your Suzuki was? :)

Posted by: Sherri at April 3, 2008 10:56 AM
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