When it comes to buying a luxury car, it's important to understand the depreciation rate of the vehicle. Luxury cars tend to depreciate faster than other cars, with some models losing up to 68% of their original value in the first five years. Knowing which luxury cars depreciate the most can help you make an informed decision when buying a new or used car. On average, luxury cars lose about 40 to 50% of their original value in the first five years of ownership, as HotCars details.
With their higher retail rates, luxury cars generally benefit substantially after getting a particular new one. However, together with the high original price, they tend to depreciate considerably. We rank the fastest depreciating luxury cars based on the amount of value they lose in the first five years of ownership. The BMW i3 is one of the most depreciating luxury cars on the market, with a depreciation rate of 68%.
This all-electric compact hatchback has some great features, such as an attractive design and superior interior refinement, but its significant drop in value after five years of ownership means you might not make as much money as you expected if you decide to sell it. The Mercedes-Benz GLE500 mid-size luxury SUV ranks second for the most-depreciating luxury car after five years of ownership, with a depreciation rate of 65%. It has some positive attributes, including an attractive design and a luxurious interior, but a significant drawback is its significant drop in value. Volvo's largest sedan, the S90, marks the beginning of an obvious trend among luxury cars with the lowest resale value.
iSeeCars ranked the depreciation of mid-size luxury cars relative to the segment average, which is 53.6 percent. iSeeCars ranked the depreciation of small compact and subcompact cars relative to the segment average, which is 36.3 percent. iSeeCars ranked the depreciation of small luxury cars relative to the segment average, which is 46.4 percent. In terms of the BMW 5 Series, if you want to avoid one of the lowest resale value luxury cars on the market, buy one with some power. The enormous cost of repairing and maintaining luxury cars is primarily responsible for high depreciation rates. Understanding vehicle depreciation is an important factor in helping new and used car buyers make an informed car purchase decision at the dealership.
Here are 10 luxury cars with steeper depreciation curves than any of their counterparts:
- BMW i3
- Mercedes-Benz GLE500
- Land Rover Range Rover
- BMW 5 Series
- Volvo S90
- Audi A4
- Lexus ES 350
- Jaguar XF
- Acura TLX
- Cadillac CTS
