These are the 15 cars that depreciated the most, counting backwards to the fastest loser in value. Trucks and SUVs account for seven out of 10 spaces on the website's list of vehicles that enjoy the slowest depreciation rate. Best-performing models for value retention will lose 19.4 to 39.5 percent of their original value after five years. The two main models in this regard are the Jeep Wrangler and the four-door Wrangler Unlimited, which historically have low depreciation rates.
The Audi A4 starts this list in tenth position, and in the process starts a couple of trends. First, almost all vehicles on this list have four (or more) doors, all but two in a traditional sedan format. Second, all but one vehicle in the top 10 come from luxury brands, including one more Audi. The BMW 4 Series ranks eighth on the list of the largest depreciators, losing 51.7% of its value after three years of ownership.
Series 4 is available in coupe, convertible and Grand Coupe styles with fast tailgate. There is one more BMW model on the list, and you'll see it a few more points inside the red zone. And now we come to the biggest loser of all. With a loss of 55.8% of its initial value after three years of ownership, the Audi A6 depreciates faster than any other vehicle in the United States (with the exception of a couple of low-volume electric cars).
But before you go to the nearest BMW dealership to buy an i3, it's worth knowing that it would have lost approximately 68% of its original value in the first five years. According to CarEdge calculations, the BMW i3 will have a residual value of approximately 19.38% after 10 years of ownership. The Mercedes-Benz GLE500 is a mid-size luxury SUV with an attractive exterior, superior interior refinement and excellent power. But despite all the good things, the value of the GLE500 plummets by approximately 65% in the first five years.
Understanding vehicle depreciation is an important factor in helping new and used car buyers make an informed car purchase decision at the dealership. It is the enormous cost of repairing and maintaining luxury cars that is largely responsible for high depreciation rates. Here are 10 luxury cars with steeper depreciation curves than any of their counterparts, measured by the amount of value they lose over the course of the first five years of ownership. iSeeCars ranked the depreciation of small compact and subcompact cars relative to the segment average, which is 36.3 percent.
We rank the fastest depreciating luxury cars based on the amount of value they lose in the first five years of ownership. iSeeCars ranked the depreciation of mid-size luxury cars relative to the segment average, which is 53.6 percent. According to iSeeCars CEO Phong Ly, “Three years is a popular age for used car buyers because cars have suffered a huge depreciation blow, but they are likely to have many of the latest modern safety and technology features,” said iSeeCars CEO Phong Ly. Even worse than buying a rapidly depreciating car is buying a car that depreciates quickly when applying for an expensive car loan.
While the average new luxury car loses 40-50% of its original value in the first five years of ownership, some models tend to lose much more. iSeeCars ranked the depreciation of small luxury cars relative to the segment average, which is 46.4 percent. Depreciation is that moment when you drive a new car out of the parking lot and the car instantly loses a percentage of its value. Either way, the MKZ's wide collection of luxury options can make it especially appealing to bargain buyers looking for a high-end car with an affordable starting price.