Car Values Plunge: Which Models Are Losing the Most?

A recent analysis by the social media channel Auto Friends highlights surprising depreciation in popular car models. Even well-regarded vehicles are experiencing significant drops in value, potentially impacting recent buyers.

Jeep Compass Takes a Hit

The **Jeep Compass Limited T270 Flex**, a popular SUV, tops the list with a substantial loss. Last May, its FIPE table value exceeded R$195,000; now, it hovers around R$166,000. This represents a devaluation exceeding 15% in just a year.

BMW X1’s Depreciation Woes

The 2020 **BMW X1 X-Line Flex** also faces depreciation. Despite its reputation for reliability and driveability, it has lost approximately R$32,000 in table value, dropping from around R$195,000 to just over R$162,000. This reinforces concerns that premium flex cars may rapidly lose value, especially compared to gasoline or diesel versions.

New Compass Also Affected

Even the top-of-the-line 2024 **Jeep Compass Series S T270 Flex** is showing signs of devaluation. Listed between R$215,000 and R$221,000 last May, its value has fallen to between R$178,000 and R$222,000, depending on configuration. This drop, impacting even nearly new vehicles, indicates market instability.

What’s Causing These Value Drops?

Several factors contribute to the devaluation, including a high supply of used cars, increased popularity of entry-level SUVs, changes in consumer preferences, and maintenance costs. Moreover, high-end flex models are affected by perceptions of high fuel consumption compared to turbo or diesel options.

Is Buying Devalued Models a Good Idea?

Purchasing these models can be worthwhile, but caution is advised. A well-maintained vehicle with a good history, priced below the FIPE table, could be a good deal. However, buyers should not anticipate appreciation or quick resale. These cars suit those seeking comfort, performance, and safety, understanding that resale value may be lower.

Used Car Market Trends

Overall, used car prices are expected to decline further in 2024. According to a recent report by Cox Automotive, wholesale used vehicle prices fell 0.5% in the first 15 days of May, and are expected to continue decreasing (Cox Automotive, May 2024). This trend reflects broader economic pressures and shifting consumer demand.