Luxury cars are beautiful and a high-end vehicle can say a lot about the driver. Yet, many car buyers tend to forget about the depreciation and long-term value of the car. By all means, spend the cash to get the car you deserve, but look twice before you purchase these models because they are the top five depreciating cars on the market.
- BMW 5 Series– By 52.6%. A BMW has been known as the most depreciating car on the market. From your normal maintenance payments over $1,000 to its long list of poor technical and safety features, you better off buying a TSLA (Tesla,$357.00) who is also on the hot seat as we speak (no pun intended).
- Volkswagen Passat– By 50.7%. Surprisingly, Volkswagen’s most loved car drops quickly in depreciation. Though there are many mechanic complaints, that doesn’t stop the consistent sales and demand for this model.
- Mercedes-Benz E-Class– By 49.9%. If you bought this car, you either bought it for the lifestyle brand or because you can actually afford it (along with the low gas mileage).
- BMW 3 Series- By 49.8%. BMW back on the list for an as 4th place in the most depreciated car. This smaller model has the same complaints as the 5 series, along with the poor gas mileage and high maintenance.
These evaluations were issued by iSeeCars to analyze models with the greatest loss in value after three years. This study has opened the eyes to investors who invest in the automotive industry as well as future first-time car buyers. So the next time you’re looking into a new car purchase, keep in mind of the quality and functionality and how it will fit into your lifestyle.
Please see About Me & Disclaimer for additional information about Black Tea.
Information Obtained: iSeeCars.com, KellyBlueBook.com
I get it. Our economy is awful, we can barely hold a $1,000 emergency fund and investors have transferred from value investing to looking for something that will have our “bang for our buck” kind of deal. However, just because a stock is “cheap” doesn’t mean that is it necessarily a good buy. It may be best to hold on to your savings for the more expensive index funds stead of buying the penny stock.
Stop trying to get rich quick from the stock market, It won’t work in your favor.
There are many stocks you can find under $5 dollars, but keep in mind that the lower the dollar, the higher the volatility. Investors who ignore the company’s financials and selling product, only care about how much money they can make. Stop trying to get rich quick from the stock market, It won’t work in your favor.
Besides the fact you feel special holding 1,000 shares of a stock that can cost a little as $0.0032, what value does the company hold long-term? Wealthy investors don’t care about the price of the stock, they care about consistency. What is the company competitive advantage? What are their competitors and the amount of money they spend on research and development?
May I encourage you to look deeper into every company you are investing in. Your due diligence is the only way that makes each investment the right investment. Every investor is responsible for his or her gains and loses, so choose wisely.
“Do What You Love” Is a phrase we may hear often. But when it comes to the markets, investing in what you “love” may pull you into losing hundreds or even thousands of dollars. Just because you like shopping at a particular retail store, doesn’t mean that the company will survive in the stock market. Let’s look a couple examples of companies who are failing miserably on their balance sheets.
GPRO (Go Pro, $5.55), a company that engages in manufacturing cameras and camera accessories (wearable sports camera) is a very well known company that people love. Advertised with several players from the NFL, GPRO used to be on the rise, however from the highest stock price climb of $86 (in 2014) has now descended to a penny stock of $5.55. As well as an operating income of a negative of -$163,000,000 and net income of negative -$183,000,000, it’s nearly impossible to continue to see this company as a long term investment if financial changes aren’t a priority.
LB (L Brands, $36.10), is a popular company that engages in ownership of famous retail companies known as Victorias Secret, Pink, Bath&Body Works, La Senza and Henri Bendel. From a stock drop price of $20 since 2015, LB is losing free cashflow and has made a decline of almost 30% in opereating cash flow from 2017. From recent sexual-bias ads that are unapealing to new investors, LB may need to make some changes in order to improve positive cash flow returns.
These are only two of of many companies who have poor managibility of their finances and business operations (Tesla, Southwest Airlines, General Motors and more), . Any company can have a great product to sell, however if they cannot manage their finances, it is doomed to total debt. But good marketing and a pretty desplay can sell anything, this is a case that shows you that loyalty dosen’t always win.