One word that car buyers typically hate to hear is "depreciation." This is the difference between the original sales price and what the vehicle will be worth in the future — and finding a vehicle that will hold its value over the years is a smart money move for car owners.
Here are 10 SUVs that CarEdge has deemed the worst value, according to how much they depreciate in value after five years. Drivers in the market for a new vehicle should think twice before driving off the car lot with one of them.
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Hyundai Kona EV
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The Kona EV depreciates in value by $20,451 after five years. That means while a new Kona EV sells for $38,586, the average residual value after five years of depreciation is $18,135. Keep in mind this is the number for the retail market. Trade-in and private sales will likely be lower.
MINI Countryman
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This small SUV will depreciate in value by $20,470 after five years. That means while a new one sells for $39,465, the average residual value will be $18,995 after five years. While it's a fun and practical drive, you may not cash in as much if you decide to sell it down the road.
Buick Envision
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This five-seater is a compact, smooth ride, but owners will see its value decrease greatly over time. The Envision depreciates in value by $20,899 after half a decade. While a new one sells for an average of $40,779, it will have a residual value of $19,880 after five years.
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Nissan Pathfinder
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Here's another popular SUV that just doesn't seem to hold up when it comes to value. While the vehicle is great for families and is decked out with modern features, the Nissan Pathfinder depreciates in value by $23,289 after five years.
You can buy a new, equipped one for $47,210. After five years, the average residual value will be $23,921.
Mazda CX-9
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Mazdas are known for their fuel efficiency and sporty design. But if you buy a Mazda CX-9, expect it to depreciate in value by $25,970. You'll likely snag a one for around $51,416. Five years down the road, the average residual value will be somewhere around $25,446.
Buick Enclave
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The Enclave joins the Envision for Buicks on the list of SUVs with the worst value. You can expect it to depreciate in value by $27,770 after five years. After buying one for around $54,186, the average residual value will be $26,416 five years later.
Jeep Grand Cherokee
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You might be surprised to see the Grand Cherokee on this list. Owners and Jeep fans seem to be tried and true when it comes to their passion for the brand, and Grand Cherokees are popular for drivers looking for off-roading capability and high-tech features.
But this vehicle depreciates in value by $28,727 after five years. A new Grand Cherokee will set a buyer back $54,927. The residual value will be $26,200 after five years of depreciation.
Nissan Armada
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You may want to avoid the Armada if you want a solid-value SUV. It'll depreciate by $35,834 after five years. New ones sell for an average of $68,438. However, the residual value is $32,604 after five years of depreciation. Keep in mind that the model year and mileage typically affect resale values as well.
Ford Expedition
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The only Ford that makes the list of worst-value SUVs is the popular Expedition. The vehicle is a spacious and luxurious ride that's ideal for large families, but you can expect it to depreciate in value by $38,629 after five years. A new Expedition sells for $78,643 on average. After five years, the average residual value drops to $40,014.
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GMC Yukon XL
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The GMC Yukon XL rounds out the list of the 10 SUVs with the worst value. While a new one sells for $87,399 on average, it'll depreciate in value by an estimated $45,316 after half a decade. The average residual value in five years will be $42,083.
If you're in need of some real space, this could be one to consider despite the vehicle's depreciation. It has a strong towing capability and even more cargo space and legroom than the classic Yukon.
Bottom line
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According to Progressive, most cars lose up to 20% of their value within the first year. And when it comes to SUVs with the worst value, even some popular names make the list.
If you're in the market for one, it may be helpful to look at the overall cost of owning a particular SUV. Finding a deal on one that's less expensive to own, won't lose a great deal in depreciation, and will save you money on car insurance could help keep more money in your budget or emergency fund.
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