ORIGINAL ARTICLE: Which High-Depreciation Cars should you Never Buy New?
The thrill of owning a brand-new car often captivates motorists, promising the allure of that fresh-from-the-showroom scent and the satisfaction of being the first to take it on the road.
However, for the savvy buyer, the allure of newness can sometimes mask the rapid depreciation that many cars experience soon after leaving the dealership lot.
While all vehicles depreciate over time, some models experience steeper drops in value than others, leaving their owners facing significant financial losses in a short period.
A used car-buying YouTuber has shared a few cars that motorists should never buy new if they are looking to save money.
Johnny Brighton regularly posts videos on his channel CarsWithJB in which he recommends certain models to viewers based on various factors and discusses cars to avoid.
In one video, Johnny highlighted new cars that are known for depreciating in value at a fast rate.
We delve into three cars he discusses and why motorists are better off buying them secondhand instead of brand new.
Tesla Model Y
Johnny pointed out that the specific model is the one that produces 420 bhp.
He explained: “I’ll be honest with you, I’ve never been a fan of the way this car looks on the outside or in, but the fact that it is so quick means I’m sure it will bring its own beauty to whoever is driving it.”
The YouTuber stated that it is the cheapest car out of the ones discussed.
“In 2022 it would have cost around £60,000, but today we are looking at spending around the £32,000 mark at the bottom end, with plenty sitting at £36,000.
“That means in just two years they have dropped by about £28,000, working out at 46.67% [of its overall value].”
Launched in 2020, the Tesla Model Y has been one of the US carmaker’s most successful models, with more than 1.2 million sold in 2023.
Johnny added that this car is ideal for those who want a vehicle that is full of tech.
Whilst many experts are anticipating a facelift, which will likely add the new front end from the latest Model 3, the best value can be found on the used car market.
Generally, used models start at £32,500, with many of the cheapest ones still featuring the powerful dual-motor setup that can accelerate from 0-60mph in around 3.5 seconds.
Mercedes Benz EQS
Johnny suggested that drivers looking to save some money on a luxury car can get a two-year-old Mercedes Benz EQS for around half the price of a new example.
Although it lacks in performance, it more than makes up for it with its luxurious features.
However, Johnny stated: “Luxury does come at a cost and, brand new, these would have cost around £105,500 in 2022, whereas today they start at the £55,000 mark, with many available for under £63,000.
“That means that in the space of two years, they’ve dropped by around £50,500 or 48.7%.
“That’s [a decrease of] £25,250 per year of it being ridiculous, which is just ridiculous.
“It’s like a London graduate’s starting salary lost every single year of this car existing.”
He pointed out that this high-depreciating car is a scary indicator for the future of luxury electric car sales.
“The design was focused on making the car the most aerodynamic car produced on release, which is obviously very important from an efficiency perspective, hence the flowing lines and slightly anonymous looks overall.”
Porsche Taycan
For motorists wanting a true sportscar should consider a used Porsche Taycan, with some examples of the all-electric coupe now falling below £50,000.
Johnny explained: “Whether it’s in Sport Turismo, Cross Turismo or standard saloon spec, it’s a lovely looking car whichever you go for.
“However, more importantly, it’s gone from being £95,000 for a base model new in 2022, give or take, to around £63,000 at the bottom end for a 2022 example today.
“You can get down to below £50,000 if you buy yourself a model from 2020, but typically 2022 models sit at below the £67,000 mark, meaning an annual depreciation of £16,000.”
He also stated that the vehicle is a “Porsche first and an electric car second”, meaning the model does not stray away from what the German carmaker is known for.
Buying a car requires a keen eye for value retention, especially when considering the high-depreciation models discussed in this article.
While the allure of a new car is undeniable, the financial implications of rapid depreciation cannot be overlooked.
By not buying these high-depreciation vehicles new, motorists can avoid the steep financial losses that often accompany ownership.
Instead, prospective buyers should explore alternative options such as buying them secondhand or considering models with better track records for retaining their value over time.
Conducting thorough research, comparing prices, and understanding the factors influencing depreciation are essential steps in making a wise automotive investment.
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