Industry News: Kelly Blue Book Lists The Vehicles With The Worst Resale Values

[William Maley]

Kelly Blue Book has listed the ten vehicles that deprecate at alarming rate and top three happen to be electric vehicles. The Nissan Leaf according to KBB is projected to only retain 18 percent of its new-car price after five years. Behind the Leaf is the Fiat 500e which is expected to retain 21 percent and the Smart ForTwo EV which is expected to retain 21.5 percent.

Few key items to keep in mind:

• Fiat 500e is only available to lease in California
  
• A number of automakers, like Nissan have been dropping the price of the EVs
  
• Electric vehicles come with a number of incentives from the U.S. and state governments, which in turn hurt the resale value
  

Eric Ibara, director of residual consulting for Kelley Blue Book tells USA Today EVs have a problem of finding someone to buy a used one.

"Pure electrics have been slow to catch on in the resale market." Customers "have been willing to buy a new one, not a used electric vehicle."

As to why, Ibara doesn't have a good answer to this.

The remaining seven vehicles on KBB's list are all luxury vehicles such as the BMW 7-Series, Lincoln MKS, and Jaguar XK.

1. Nissan Leaf - 18%
   
2. Fiat 500e - 21%
   
3. Smart fortwo electric - 21.5%
   
4. Jaguar XJ - 22.2%
   
5. Volkswagen CC - 25%
   
6. Mercedes-Benz CL-Class - 25.8%
   
7. BMW 7 Series - 26%
   
8. Volvo S80 - 27.3%
   
9. Lincoln MKS - 27.5%
   
10. Jaguar XK Series - 27.6%
    

Source: USA Today

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

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[Drew Dowdell]

Why? No tax incentive in a used EV.

The Volt isnt on this list though.

[smk4565]

The Volkswagen CC is the surprise on the list. Electric cars lose value quickly, as do high dollar luxury cars that the masses buying a used car are going to be afraid of, and the wealthy will just buy a new one. I am surprised the Volt isn't on there, I have seen 2012 Volts under $25k, from $40k new, that is retaining about 60% after 2 years.

[Cory Wolfe]

The list isn't terribly surprising. The first crop of EVs were mostly priced beyond where the market wanted. Factor in the tax credit and you have an instant loss in depreciation.

[Miradart]

I do kind of snicker when I read the BMW 7 series is on this list. I've heard from many sources that the last thing you want in life, is a higher end BMW, that is out of warranty! This appears to be especially true of the 7 series. Quirky is a kind word for it.

[G. David Felt]

To be expected for what is there. No Hybrid which is what the volt is so it is understandable as Hybrids do hold more value than the EV's or ubber luxury auto's.

[ocnblu]

EVs are crap. Nobody wants them.

[Drew Dowdell]

  On 12/31/2013 at 5:04 AM, Miradart said:

I do kind of snicker when I read the BMW 7 series is on this list. I've heard from many sources that the last thing you want in life, is a higher end BMW, that is out of warranty! This appears to be especially true of the 7 series. Quirky is a kind word for it.

They're trouble even in warranty!

[dwightlooi]

It is not that customers are "slow" to catch on to used electric vehicles. It is simply that consumers are not complete idiots!

Cars like the LEAF would not have sold new to begin with if not for about $12,000 in good taxpayer money going into federal and state subsidies. Without that, a $36,000 LEAF simply makes zero economic sense since you cannot burn $12,000 in gasoline over the life of the battery! Let me put that into perspective... $12,000 in gas @ $3.50 a gallon for Californian ripoff 87 Octane is 3429 gallons of fuel. That, incidentally, will cover 120,000 miles in a conventionally powered small car with an average of 35 mpg.

A LEAF is somewhere in the low to mid-20K range new when subsidized by green states and the federal government, who are all too ready to transfer wealth from hardworking taxpayers to tree hugging global warming Coolaid drinkers they favor. At about 5 years, you are looking at about half the new purchase price (which is typical of any car) minus the $8~10K battery replacement which is due soon. $23,000 x 50% - $9,000 = $2,500.

Now, granted that the battery is probably usable with less and less range for several years more -- perhaps as much as another five if you don't mind greatly compromised range. But who wants that in a car that is already annoyingly short legged at 38~72 miles range (typical vs official)? I think consumers will be generous to pay 18% of it's as new price for a 5 year old LEAF or similar electric!

[Drew Dowdell]

I just want to know where I can get an XJ for 22% of retail!

[dwightlooi]

  On 12/31/2013 at 9:31 PM, Drew Dowdell said:

I just want to know where I can get an XJ for 22% of retail!

The 2011s are going for about 40K or about 50% their as new value. I guess if you plot depreciation as a straight line you end up with 20~25% after 5~6 years. But, yes, sign me up for a 2011 XJ for $19K in 2015~2016. Make it a long wheelbase 470 bhp V8 Supercharged car too!

The new Jaguars are very nicely designed and made though. So, maybe they'll do better than Jaguars historically does.

[smk4565]

  On 12/31/2013 at 9:31 PM, Drew Dowdell said:

I just want to know where I can get an XJ for 22% of retail!

Maybe the old one, but I doubt the new one, the new XJ looks sweet.

[FAPTurbo]

  On 12/31/2013 at 10:53 AM, ocnblu said:

EVs are crap. Nobody wa...

[ocnblu]

[Blake Noble]

[Intrepidation]

[Drew Dowdell]

okay guys... move on...

[A Horse With No Name]

  On 12/31/2013 at 1:18 PM, Drew Dowdell said:

  On 12/31/2013 at 5:04 AM, Miradart said:

I do kind of snicker when I read the BMW 7 series is on this list. I've heard from many sources that the last thing you want in life, is a higher end BMW, that is out of warranty! This appears to be especially true of the 7 series. Quirky is a kind word for it.

They're trouble even in warranty!

Quoted for truth!

[A Horse With No Name]

  On 1/1/2014 at 6:04 AM, FAPTurbo said:

  On 12/31/2013 at 10:53 AM, ocnblu said:

EVs are crap. Nobody wa...

Absolutely priceless. You wonder how much the depends adds in actual extra padding to the seat of a VWBeetleTDI.

[ocnblu]

*scoff* the Serenitys are really thin

[Drew Dowdell]

  On 12/31/2013 at 5:04 AM, Miradart said:

I do kind of snicker when I read the BMW 7 series is on this list. I've heard from many sources that the last thing you want in life, is a higher end BMW, that is out of warranty! This appears to be especially true of the 7 series. Quirky is a kind word for it.

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That's absolutely true... my grandmother had her first one lemoned out. They put her in a new one for a discounted lease. The second one had a lot of trouble, but not enough to lemon.  After the second one, she went back to Buick and is on her third one since.

[A Horse With No Name]

  On 12/31/2013 at 5:04 AM, Miradart said:

I do kind of snicker when I read the BMW 7 series is on this list. I've heard from many sources that the last thing you want in life, is a higher end BMW, that is out of warranty! This appears to be especially true of the 7 series. Quirky is a kind word for it.

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I had a neighbor drive one for about 25 years.  He could have financed the space shuttle and the Apollo mission continuation with what repairs cost on that thing.

  On 10/9/2017 at 7:00 PM, Drew Dowdell said:

That's absolutely true... my grandmother had her first one lemoned out. They put her in a new one for a discounted lease. The second one had a lot of trouble, but not enough to lemon.  After the second one, she went back to Buick and is on her third one since.

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BMW ownership is not something i desire by any rational means.

[G. David Felt]

Even the M3 that is considered their best and most dependable and desireable car is not something I would ever want or wish on my enemy. My best friend had one and it spent more time in the shop under warranty than at his house. He finally traded it in on a AMG that also ended up in the shop more than at his house, he went to Porsche and ended up buying an Audi as he said both the Porsche and Audi were more dependable than the BMW or AMG. Sad state of their quality.

[FAPTurbo]

  On 12/31/2013 at 10:53 AM, ocnblu said:

EVs are crap. Nobody wants them.

Expand  

  On 1/1/2014 at 6:04 AM, FAPTurbo said:

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FOUR GOD DAMN YEARS WE'VE BEEN HEARING THE SAME THING, HOLY SHIT

[oldshurst442]

I see....that..funny gifs used to be a thing around here to poke fun....

Glad I could contribute more to this craziness!

 

[oldshurst442]

Well...you've got to admit...

Elon has indeed sold us sanctuary with these EV thingys...and everybody is on board...well almost everybody...Sergio and Ocnblu are still hold outs...

 

But as far as nobody wanting EVs...well, they are no longer a new sensation, and they are still here!!!

 

But I do believe...against all odds...that EVs will eventually prevail over the ICE...

 

 

 

 

 

[Drew Dowdell]

Serg is only not on board because he is spending all his money on resurrecting Alfa and Fiat.

The Pacifica is eeeexcelent as a PHEV though and using that platform for some sort of sedan or crossovers would rock. 

[Scout]

It's hard to believe the smart for two resale percentage. But that's because it's hard for me to believe anyone would buy a new one to begin with.

[A Horse With No Name]

  On 10/10/2017 at 10:34 PM, FAPTurbo said:

FOUR GOD DAMN YEARS WE'VE BEEN HEARING THE SAME THING, HOLY SHIT

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He leads an exciting life.  Right now he is matching his wool socks collection.  He almost hyperventilate at the thought of shuffleboard.

And he is so afraid of electricity he wants to go back to six volt electrical systems an AM radio.

  On 10/10/2017 at 11:56 PM, Scout said:

It's hard to believe the smart for two resale percentage. But that's because it's hard for me to believe anyone would buy a new one to begin with.

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During cash for clunkers father of a friend traded in a 400,000 mile Ranger with no radio, no heat and floors so rusted water poured through them in rain storms.  He traded it on a smart car because he reasoned the smart could not be as miserable as that Ranger.  He later admitted it was actually worse and wanted his old truck back.

[A Horse With No Name]

  On 10/10/2017 at 11:46 PM, Drew Dowdell said:

Serg is only not on board because he is spending all his money on resurrecting Alfa and Fiat.

The Pacifica is eeeexcelent as a PHEV though and using that platform for some sort of sedan or crossovers would rock. 

Expand  

And will also probably never see the light of day.

[A Horse With No Name]

  On 10/10/2017 at 8:27 PM, dfelt said:

Even the M3 that is considered their best and most dependable and desireable car is not something I would ever want or wish on my enemy. My best friend had one and it spent more time in the shop under warranty than at his house. He finally traded it in on a AMG that also ended up in the shop more than at his house, he went to Porsche and ended up buying an Audi as he said both the Porsche and Audi were more dependable than the BMW or AMG. Sad state of their quality.

Expand  

One of my friends with an M3 lives in town and he is so soured on car ownership he is thinking of getting a bike and riding the Bus.  And he could afford a 911 or CTS V if he wanted to.

Edited October 11, 2017 by A Horse With No Name