Discontinued cars can offer huge savings, but the lower price tag comes with trade-offs shoppers shouldn’t overlook.
These models often deliver solid value upfront, especially when compared to similar newer options. Still, there are some key drawbacks that can impact long-term ownership costs.
Resale Value
Many different things can affect the resale value of a vehicle, including if it’s no longer manufactured. Buyers may wonder why a certain vehicle was discontinued.
Two cars that were discontinued when SUVs were on the rise were Chevrolet Cobalt and Ford Fusion, said Justin Fischer, automotive analyst at CarEdge. As a result, the value of the Fusion and Cobalt rapidly depreciated, he added.
If you are considering buying a discontinued car remember that it can also affect your finance terms, according to Motor Lend. Lenders have to assess residual values and the risk when deciding to go forward with an auto loan. If a discounted vehicle is expected to depreciate faster, then you might be stuck with a higher interest rate, a shorter loan term or need a larger deposit.
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Service and Parts for Long Term
Fischer said that if the vehicle is no longer manufactured, specialized component parts may be more expensive or even difficult to locate, CarEdge reported.
Some parts vanish within a five-year period of the particular model being discontinued, while others are available for decades because they’re used across multiple vehicles, according to iFndAutoParts. Finding service and parts for a discontinued vehicle all comes down to profitability and volume.
Harder To Sell on Your Own
When buyers are searching for vehicles, fewer may be interested in discontinued cars, said Fischer. If the discontinued vehicle is a rare model, not many choices are left other than trying to sell the car to a collector, putting it up for auction or selling it to an enthusiast dealership who is interested, per CarParts.
Aftermarket Support
Fischer said there is less interest in developing upgrades or accessories for discontinued cars. With less aftermarket support available, searching for these specialized pieces may come down to having to find a replica part, which could become costly, according to SlashGear.
Depending on the part, a salvage or recycling yard could be consulted, but there is no guarantee that the specific part would be available for purchase. One such company, Kirchhayn, will ship discontinued parts throughout the U.S. and if they do not have the part they will work to help you try and locate it.
Reduced Brand Commitment
If a model gets cut because of weak sales or a shift in strategy, dealer know-how and factory support often fade, technicians can become less familiar with the vehicle and there are not as many service bulletins, according to Fischer.
He explained that as manufacturers switch their focus to current models, and discontinued models get less attention, which could make service and maintenance more difficult. One example is the Nissan Titan; it is no longer competitive in its class, so it is being discontinued, Edmunds reported. Nissan is looking forward to focusing on electric and smaller vehicles.
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This article originally appeared on GOBankingRates.com: Discontinued Cars Can Save You Thousands — But Here’s the Catch
