9 car types whose value will drop dramatically in 2024

Cars, especially everyday vehicles, are not usually considered a great investment. However, certain types of vehicles are currently expected to lose significant value between now and December 31st.

“Certain types of cars are likely to drop in value significantly over the rest of the year,” said Geoff Cudd, founder of Find The Best Car Price. “Large sedans and luxury cars with lower fuel consumption could drop significantly in value due to rising fuel prices and changing consumer preferences towards more fuel-efficient and environmentally friendly vehicles.”

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In addition, Cudd explained that “…cars with outdated technology or without advanced safety features also lose value faster as buyers increasingly prioritize these aspects. Vehicles from brands with lower reliability or a history of frequent recalls can also lose value faster. Therefore, these types of cars are not as good buys in 2024 as their resale value will likely decline, making them less financially viable in the long run.”

Cudd and several other auto experts shared their detailed thoughts on the nine car types whose value will drop dramatically in 2024.

Traditional limousines

“Despite their (long-standing) popularity, traditional sedans are expected to lose value,” said Emil Sultanov, founder of Long Term Car. “With the increasing preference for SUVs and crossovers, sedans are losing their appeal. Buyers are gravitating toward vehicles that offer more space, versatility and a greater sense of security.”

“Luxury sedans from brands like BMW, Mercedes-Benz and Audi often suffer from severe depreciation,” added Shawn Miller, senior writer at Modified Rides. “In 2024, the market increasingly favors SUVs and electric vehicles (EVs) over traditional sedans. This shift in consumer preferences means luxury sedans could experience significant depreciation.”

Diesel-powered vehicles

The shift towards clean energy and stricter emissions regulations is accelerating the decline of diesel vehicles, Sultanov said.

“As diesel engines are banned or restricted in many regions, their resale value is likely to drop sharply,” Sultanov described. “This is especially true for older models that do not meet the latest emissions standards.”

Luxury cars with high depreciation

“Certain luxury cars, especially those from brands with steep depreciation curves, will suffer significant loss in value,” Sultanov said. “Factors such as high maintenance costs, expensive insurance and rapid obsolescence of technology contribute to their diminished appeal.”

According to Sultanov, brands known for their rapid loss of value include Jaguar, Maserati and Alfa Romeo.

Compact and small cars

Given the stabilization of fuel prices and consumers’ preference for larger vehicles, compact and subcompact cars are losing market share, according to Sultanov’s professional assessment.

“Demand for these smaller cars is dwindling, leading to a decline in their resale value,” Sultanov noted. “In addition, the rise of electric vehicles (EVs) is also affecting the attractiveness of traditional gasoline-powered small cars.”

According to Miller, the compact car segment has been losing ground to crossover and small SUV models for years.

“This trend is expected to continue into 2024, causing subcompact cars to rapidly lose value,” Miller continued. “Consumers prefer the practicality and style of crossovers, making subcompact cars less attractive.”

Older hybrid models

Sultanov said hybrid technology was once the pinnacle of fuel efficiency, but advances in electric vehicle technology are eclipsing older hybrids.

“These vehicles are now perceived as a middle ground, with consumers opting for either traditional gasoline engines or fully electric variants,” Sultanov continued. “As a result, older hybrids are likely to lose significant value.”

“Older hybrid models that are neither plug-in capable nor fuel efficient will likely lose value,” Miller explained. “As newer, more efficient hybrid and fully electric models come to market, outdated hybrids will become less attractive to buyers.”

Discontinued models

“Cars from brands that have announced plans to stop production or make significant model changes often experience accelerated depreciation,” Miller said. “Buyers tend to avoid vehicles that are no longer in production because they are concerned about parts availability and future resale value.”

“Cars that have been discontinued by manufacturers often suffer a sharp loss in value,” says Sultanov. “The lack of ongoing support, availability of spare parts and perceived obsolescence make these vehicles less attractive to buyers.”

Notable examples, as Sultanov highlighted, are the Ford Fusion, the Chevrolet Impala and the Toyota Yaris.

Conventional petrol-powered cars

This includes not only large SUVs with high fuel consumption, but also vehicles with combustion engines.

“With rising fuel prices and increasing emphasis on environmental sustainability, it is expected that large SUVs with poor fuel efficiency will quickly lose value,” Miller said, stressing that models such as the Cadillac Escalade or Lincoln Navigator may be less in demand, leading to lower resale values.

“As the automotive industry moves toward electrification, traditional internal combustion engine vehicles, especially those without hybrid technology, are expected to lose value at a faster rate,” Miller noted. “As more governments impose stricter emissions regulations and consumers prefer more environmentally friendly options, demand for internal combustion engine vehicles will decline.”

Vehicles with high mileage

“As always, high-mileage cars are vulnerable to depreciation, but this trend is expected to intensify in 2024,” Sultanov explained.

“With the increasing availability of low-mileage used cars and growing interest in certified pre-owned cars, it is becoming difficult for high-mileage cars to retain their value,” Sultanov said.

Sports car

“Sports cars are fun to drive, but they often lose a lot of value,” explains Miller about vehicles that have a lot to offer on the outside but have little inner value.

Models from brands such as Maserati, Jaguar and even some from Porsche could, in Miller’s professional opinion, suffer a sharp drop in value as their niche shrinks.

“High maintenance and insurance costs further exacerbate their loss of value,” Miller said.

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This article originally appeared on GOBankingRates.com: 9 Car Types That Will Drastically Drop in Value in 2024