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These 3 car models could tank in value in 2026. Here are some alternatives to consider
Cars are depreciating assets, which means they lose value over time. Although most cars, other than some collectible models, get cheaper as they get older, some see their values plummet faster than others.
On average, new cars lose around 30% of their value in the first two years. In the years after that, vehicles continue to lose an average of 8% to 12% in value each year, according to Kelley Blue Book (1).
Of course, factors like mileage and service history impact a vehicle’s value. But other details, like the desirability of the model, can help a vehicle’s value avoid a free-fall — or accelerate its decline.
As you shop for a vehicle, opting to purchase one on the fast track to a lower value might not be a good move. Luckily, some options are easier on the balance sheet.
The three vehicle models expected to plummet in value in 2026 include the Nissan Altima, Tesla Model S, and Cadillac CT4, according to Aol.com (2).
The Tesla Model S is facing an onslaught of factors pushing down its value. For starters, electric vehicles, like the Model S, tend to drop in value more quickly than other types of vehicles, like hybrids and trucks. Additionally, Tesla’s leader, Elon Musk, became a leader in the Trump administration, slashing government jobs and life-saving international aid programs — and in the process, setting off a backlash that hurt the brand’s sales (3).
For drivers seeking a luxury car with fuel-friendly features, consider the 2025 Volvo S90 Plug-in Hybrid. Its suggested retail price of $61,391 is significantly lower than the Model S’s $86,630 (4). In general, Volvos tend to retain their value better than other luxury vehicles (5).
On the other hand, a vehicle set to lose significant value in 2026 is the 2025 Nissan Altima. With a suggested price of $28,140, this relatively affordable ride might lose more than 50% of its value in the first five years. With Nissan’s plans to shut down its Mexico plant and discontinue the Altima after this year, the model is expected to see a quick slide in value (1).
A potential alternative to the Nissan Altima is the Toyota Camry. Starting at around $29,000, it’s a similar price, but expected to depreciate at a much slower clip (6).
