Top 10 Cars with the Worst Resale Value


2017 Cadilla CTS

When you trade for that next car, you need to think about its resale value as well. The following cars may cause you to have a little more than sticker shock when you learn about their rate of depreciation.

#10 – The Cadillac CTS

This sporty mid-sized sedan has plenty in the way of interior upgrades and generous incentives when it comes to purchasing it. However, according to the latest news, the car depreciates about 34% after a year.

#9 – The Kia Optima

The predicted value of depreciation for this car for the first year is 35%. Also a mid-sized sedan, the Kia Optima, offers plenty of room and comfort as well as optimum fuel efficiency. While many owners love these amenities, trying to resell it is another thing.

#8 – The Mitsubishi Lancer

Mitsubishi Lancers like to show off their over-the-top spoilers and wings. Apparently, consumers are not all that fond of spoilers in today’s marketplace. Whiles sales are currently lagging for these souped-up autos, their depreciation value takes away from their sales value even more – 35% after just one year.

# 7 – The Chevrolet Express

Thankfully, the cargo van is not resold as often as the regular commuter vehicle. If you try to resell this hardworking vehicle in today’s marketplace, the car’s depreciation value sets the car’s resale value at 37% below its original price.

#6 – The VW Beetle

Although this once-iconic car was all the rage when it was first released, today, it is just another piece of metal on a dealer’s lot. While the Beetle is a great car, its predicted depreciation value lowers its price after a year by 37%.

#5 – The Hyundai Genesis

Initially, Hyundai had hoped it could introduce the Genesis as a luxury car. However, the company has not received much of an enthusiastic response. While the car has many of the same amenities as the Audi A6, Mercedes E-Class and BMW 5 series, the buyers are just not all that interested in what the car offers. However, if you are in the market for luxury and don’t care about the make or model, then you can buy a one-year old Genesis for 38% less than its original asking price.

#4 – The Chevrolet Camaro

A classic car, the Chevrolet Camaro is a strong seller. However, expect to lose as much as 39% on the car’s MSRP after a year. That’s because the Ford Mustang has been gaining in popularity and the newer redesigned Camaro for 2016 is making current Camaros depreciate more quickly.

#3 – The Mercedes-Benz SL-Class

Evidently, this comfortable sports car bleeds quite a bit of money the moment it is driven of the dealer’s lot. That is because beginning prices are set at $84,000. However, if you want to save a whopping amount of change, it is better to opt for one of the older 2000 models that has been well-maintained. They usually sell for around $10,000.

#2 – The Dodge Charger

This full-sized sedan and muscle car loses its punch once it is driven for a year, depreciating as much as 45%. As a result, many car buyers, who are looking for a full-sized car, have opted for a truck or SUV.

#1 – The Nissan Leaf

The car with the highest depreciation is the Nissan Leaf, signifying that the auto’s once-popular hold is now over. While its fully electric system and $7,500 tax credit piqued buyer interest, the car still depreciates about 48% after a year’s time.

If you bought any of the above vehicles, you definitely have not made an ideal investment. However, if you are looking for a newer car at a low cost, any of the cars on the list may capture some interest.


Blacks and Hispanics Use Payday Loans More than Asians and Whites


Diverse People

Although plenty of households in the United States still have a way to go when it comes to their finances, a large number of Americans have done a good job escaping from the doldrums of financial destitute during the economic collapse. Many are paying their bills and saving.

Unfortunately, it isn’t all sunshine and lollipops, says a new 2016 National Financial Capability Study by FINRA Investor Education Foundation. According to the report, debt remains a huge burden to many Americans, particularly minorities, youth and those without an education.

One specific area that is turning heads is payday loans. A considerable number of U.S. consumers are still taking out payday loans in order to pay for their daily necessities.

The personal finance literacy survey found that blacks and Hispanics will apply for an online payday advance more than those who are white or Asian. The results from the research show that 39 percent of blacks and 34 percent of Latinos had borrowed a payday loan at least once in the last 12 months. This is compared to 21 percent of Asians and whites.

“The data tell us the what, but not the why,” said Gerri Walsh, president of the FINRA Foundation, in a statement. “Access to traditional banking services can be one factor. Access to credit is also challenging. Even with the economy recovering, we’ve seen a tightening of credit, and so some individuals who might have been able to use credit cards to float past a financial shock might have to turn to other, alternative banking systems.”

Payday loans have been a contentious since the Great Recession. Last month, the Consumer Financial Protection Bureau (CFPB) announced plans to rein in the payday loan industry at the federal level by limiting how many payday loans a customer can take out in a short period of time, increasing the ways payday loan stores conduct income checks and other options.

Consumers are also doing a better job today paying off their monthly credit card balances. However, 40 percent of Americans are still partaking in very expensive spending habits. Some of them include taking out a payday loan, applying for a cash advance or only paying the minimum balance on a credit card. All of these are costly mistakes that hurt your personal finances.

It’s true that more Americans saving today than they were four years ago. The main problem, says Walsh, is the fact that 41 percent plan their spending and budgeting for just the next several years as opposed to the long-term.

“Only about 40% of Americans are spending less than their income (meaning) they have something to set aside and save,” Walsh says. “When you’re not able to make ends meet, you probably do tend to focus more on the here and now.”

The report concludes that financial education is becoming one of the most important issues of our time. Policymakers, scholars, financial educations and even the private sector “need to work together” to ensure that people are properly educated when it comes to all things money. If not then people, especially the most vulnerable, can enter into “endless cycles of debt from which it’s difficult to emerge.”


What Happens When Your Debt Catches Up to You



Many people are not quite sure how to proceed when their debt catches up with them and they are faced with collection. According to financial experts, if your debt is about to go to collection or has just gone to collection, now is the time to pay it off if you can.

However, if your debt is old and you have not been sued by a creditor, it is usually better to do nothing. That’s because, according to financial experts, most negative data on a credit report falls off after seven years. Therefore, sometimes it is better not to pay off a debt that, technically and legally, is outside the statute of limitations. If the debt has traded hands a number of times and you do not know whether or not the amount is correct, you are better off letting it go.

For example, if you have an old debt that is outside a state’s statute of limitations and try to pay it off, you may find that is has been padded with fees and interest charges. If you cannot pay the entire amount, as a result, you could, once again, open yourself up to a lawsuit. Therefore, paying off an old debt can actually be risky business. If an account, for example, is very close to aging off your credit history, wait to pay that debt last, if you pay it at all.

If you are paying off debts, now in collection, the general rule of thumb is to pay off the newest of the debts first and then work your way to the oldest debts. While this type of financial advice may be controversial, it is still a reality in the collections business. In fact, according to financial consultants, some creditors do not sue for collection. Therefore, sometimes debtors are encouraged to wait until they are sued to settle a debt and an account.

Consultants add that most creditors accept payments that are a part of an unpaid balance after an account has generally gone unpaid for about six months. However, most consumers typically cannot negotiate a settlement directly with their credit card company.

If an account is three or more months overdue, then most settlement offers come in from third-party collectors at that time. At this point, a collector will frequently accept a minimum of 70% of the overdue balance. The longer an account is in collection, the lower the settlement offer. However, it is also important to note that the more a debtor pays, the bigger the discount offered by a creditor.