The end of the year is a popular time to shop for a new car. With new models on the lots, price reductions on current models, and a number of big sales events around Thanksgiving and Christmas, it’s a great time of year to trade up.
However, just like any big purchase, the purchase of a new vehicle can trigger a sense of buyer’s remorse, and some may be starting the new year with a car they wish they didn’t own.
In a new study, automotive research firm iSeeCars.com discovered that while, on average, just 1.5% of new cars are resold within the first year, popular luxury models from BMW and Mercedes-Benz are given up at much higher rates.
To determine which models are being put back on the market most quickly, researchers at iSeeCars.com analyzed more than 24 million new car sales over the past two years. They found that eleven models in particular are reselling at rates two times higher than that of the average vehicle.
The immediate takeaway might be to avoid these vehicles altogether; however, a high resale rate doesn’t necessarily indicate a vehicle is a “lemon.” Rather, it is a reflection of the vehicle not meeting consumers’ expectations. And the fact that these almost new cars are being resold less than a year after their initial purchase represents a great opportunity for bargain shoppers. Almost all of these cars see a used discount that’s higher than the average 12.7%.
Here are the cars buyers sell most frequently within the first year of ownership.
Methodology
iSeeCars.com analyzed more than 24 million car sales that occurred in calendar years 2015 and 2016. Only model years 2015-2017 were considered. A vehicle was considered resold if it was listed and sold on the used market between 4 and 12 months after its initial sell date based on iSeeCars’ VIN history reports. Each model’s resale rate was calculated as the number of vehicles that were resold divided by the number of new vehicle sales for that model. To improve relevancy, models with fewer than 50,000 new vehicle sales were excluded. Additionally, new cars with more than 500 miles and used cars with fewer than 4,000 miles were also excluded.
11. Nissan Versa
10. Subaru WRX
1st Year Resale Rate: 3.3%
Difference from Avg. Resale Rate: 2.2X higher
Avg. Price (New):
$32,634
Avg. Price (Used): $30,625
Used Discount: 6.2%
9. Chrysler 200
8. Mercedes E-Class
1st Year Resale Rate: 3.9%
Difference from Avg. Resale Rate: 2.6X higher
Avg. Price (New): $64,742
Avg. Price (Used): $52,267
Used Discount: 19.3%
Photo Credit: iSeeCars.com
7. BMW 4 Series
6. BMW X3
5. Dodge Dart
4. Nissan Versa Note
3. Mercedes C-Class
2. BMW 5 Series
1. BMW 3 Series
1st Year Resale Rate: 8.0%
Difference from Avg. Resale Rate: 5.3X higher
Avg. Price (New): $44,833
Avg. Price (Used): $36,743
Used Discount: 18%
