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Most analyses of vehicle ownership costs focus on expenses after three years, when lease terms and bumper-to-bumper coverage expire, and five years, when powertrain warranties end and depreciation begins to slow.
However, the end of a vehicle’s first year can also prove to be a pricey financial milestone, both for its original owner and for buyers looking to get into a gently used model with just one year of service on its record. Read on to find out why.
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Some Models Give Away 1/3 or More of Their Value in 365 Days
People tend to think of vehicle expenses in terms of service costs, such as maintenance and repairs. However, Kelley Blue Book (KBB) notes that the biggest long-term expense comes not from money you put into a car, but from the value that all vehicles naturally shed over time.
According to Carfax, the average new vehicle loses 12.5% of its value in its first year of service. However, a handful of models depreciate much more rapidly, robbing their owners of up to one-third of the original MSRP or more in the first year of ownership.
According to a recent Jalopnik study, the following nine vehicles cost their owners more than any other models in terms of first-year depreciation.
Mercedes-Benz EQS: 47.8%
Nissan Leaf: 45.7%
Kia EV6: 33.3%
Hyundai Ioniq 5: 32.9%
Mercedes-Benz S-Class: 31.5%
Dodge Durango: 30.8%
BMW 7 Series (including i7): 29.8%
Ram 1500 Classic: 29.2%
Infiniti QX80: 28.8%
Others Shed So Little, Used Buyers Would Save Money Buying New
In other cases, it’s used-car buyers who stand to lose big money on cars with just one year of road time. In March, iSeeCars published its exhaustive and widely cited annual report on vehicle depreciation. It found that the following models hold their value best over five years. MoneyLion used those figures and historical one-year baseline numbers to identify the likely first-year depreciation rate.
Porsche 718 Cayman
5-year depreciation: 9.6%
1-year value retention: 98.0%
Porsche 911
5-year depreciation: 11.1%
1-year value retention: 97.7%
Chevrolet Corvette
5-year depreciation: 18.7%
1-year value retention: 95.9%
Toyota Tacoma
5-year depreciation: 19.9%
1-year value retention: 95.7%
Toyota Tundra
5-year depreciation: 21.2%
1-year value retention: 95.3%
There Is Such a Thing as Too-Gently Used
Every vehicle on this second list will likely retain at least 95% of its value after one year. Someone looking to buy a late-model vehicle with a single previous owner and all the modern upgrades might shop for a gently used vehicle from just one model year back. After all, the first owner eats the biggest chunk of depreciation, and you get what’s basically a new car at a used-car price.
However, Edmunds reports that the average APR for a new car loan in 2026 is between 6.8% and 7%, while used vehicle loans average 10.4% to 11%. With such a substantial jump in interest rates, a used car selling for 3% or 4% less than its original MSRP will quickly cost more in finance charges alone than the buyer would have spent purchasing the same car brand new.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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