10 Luxury Cars With The Highest Depreciation Rates
Among all automotive segments, luxury cars tend to suffer the most from depreciation. According to the CEO of iSeeCars, Phong Ly, luxury vehicles—especially SUVs—tend to depreciate the most because of their high retail prices, which have to go down to a reasonable extent to attract budget-conscious used-car buyers.
It’s the huge cost of repairs and maintenance of luxury cars that’s largely responsible for the high depreciation rates. While the average brand-new luxury car loses 40-50{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} of its original value in the first five years of ownership, some models tend to lose way more. While this is good news for used car buyers, it’s not so great if you’re the one selling the car. In both cases, however, understanding depreciation can go a long way in allowing you to save money and get the best deal on your used car.
Here are 10 luxury cars with steeper depreciation curves than any of their counterparts, measured in the amount of value they lose over the course of the first five years of ownership.
10 BMW i3: 68{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
The BMW i3 is an electric high-roof hatchback that entered production in 2013, as the Bavarian automaker’s first commercial zero-emission vehicle. This stellar attribute helped the BMW i3 sell over 42,000 vehicles since it came into the US market.
But before you head over to the closest BMW dealership to get an i3, it’s worth knowing that it would have lost roughly 68{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} of its original value in the first five years. Going by CarEdge’s calculations, the BMW i3 will have a residual value of just about 19.38{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} after 10 years of ownership.
9 Mercedes-Benz GLE500: 65{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
The Mercedes-Benz GLE500 is a mid-size luxury SUV with a handsome exterior, superior interior refinement, and excellent power. But despite all that good stuff, the value of the GLE500 plummets by roughly 65{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} in the first five years.
Assuming you get a brand-new GLE500 for around $83,000, and take up an average of 12,000 miles annually, after five years, the luxury SUV would be worth less than $30,000. On the other hand, if you buy a two-year-old GLE500, you may save up to $30,000.
8 Land Rover Range Rover: 63{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
Range Rovers come with a plethora of luxury features, but when you consider the rate of depreciation, which is tied to the repair/maintenance costs, you may come to a conclusion that they are not worth the money. A brand-new 2013 Range Rover will have about a 63{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} drop in value after five years on the road.
While it would be better to look elsewhere if you are looking for a new luxury SUV with a great resale value, settling for a two-year-old Range Rover on the used-car market might save you some hard-earned cash.
7 Jaguar XF: 61{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
The Jaguar XF is a midsize sports sedan that shares many of its luxury features with the XE while offering an engaging driving experience and a variety of powerful engine options. If you bought a new 2013 Jaguar XF for $53,000, the luxury sports sedan would be worth only $20,797 in the next five years.
For more context, depreciation of the Jaguar XF will cost you $32,203, which is a 61-percent dip in the original value. So, you’d be running at a loss for keeping a new Jaguar XF for up to five years.
6 Audi A8: 62{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
The Audi A8 is for those who want to enjoy all the luxury a sedan can offer without seeming too show-offy. Instead of sacrificing interior space for performance like most luxury cars, Audi found a way to balance both, while pegging the price at $75,000 for a new 2014 A8.
However, it wouldn’t be a smart thing to spend that amount of money on a vehicle that would have a residual value of 38{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} in the next five years. The Audi A8 would be worth only $28,590 after the first five years of purchase, which means the cost of depreciation during that period will be roughly $46,410.
5 Infiniti QX80: 60{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
The Infiniti QX80 is a full-size luxury SUV with a bunch of high-tech features and stands as a strong rival to the Escalade. While the exterior isn’t exactly a head-turner, Infiniti prioritized comfort for the interior, with a cool blend of burled wood, hazelnut leather, and aluminum strip.
Getting a new 2016 Infiniti QX80 sets you back $65,000, which is an awful lot of money for a vehicle that would depreciate by 60{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} in half a decade. A new 2016 QX80 would be worth only $26,000 after five years, which means depreciation eats up around $39,000.
4 BMW 750i xDrive: 61{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
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When you dish out over $101,395 on a car, you deserve more than just luxury. The BMW 750i xDrive is a full-size luxury sedan segment that proudly offers a lavish amount of power and comfort, but sadly, depreciation hits even before you drive off the dealership.
A new 2016 BMW 750i xDrive worth over $100,000 will go for roughly $39,503 just after five years of taking possession of it. This implies a depreciation rate of 61{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} in five years, and 85{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} by the end of the decade.
3 Mercedes-Benz SL550: 62{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
The Mercedes-Benz SL550 offers all the comfort, speed, and thrill you will ever need as you cruise around the city with a friend or family member. But paying more than $100,000 for a car that loses 62{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} of its original value in five years is not exactly the wisest automotive decision.
A brand-new 2015 Mercedes-Benz SL550 sets you back $107,825, and in half a decade depreciation has taken out $66,765 from the initial worth. To further grasp how depreciation eats up the SL550, it’s worth mentioning that in just one year of ownership, depreciation swallows around $22,180.
2 Porsche Panamera: 61{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
Striking a balance between practicality and sportiness is never easy, but Porsche is one of the few brands that has managed to achieve that with the Panamera. Besides the monstrous power the Panamera delivers, the streamlined, swept-back look, and the interior refinement makes it a tough contender for the BMW 7 Series and Aston Martin Rapide S.
However, spending $80,000 on a new 2014 Panamera is not exactly a good automotive investment, given the fact that a 5-year depreciation amounts to a loss of $48,952, which is roughly 61{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} of the original value.
1 Audi Q7: 59{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac}
The Audi Q7 is a seven-seat SUV with a minimalist interior that boasts high-end comfort and tech features. It’s one of the quietest rides in its segment, and with about $67,000, you can have a new luxurious long-distance cruiser. But depreciation bites the Q7 really hard, especially in the first five years, in which it loses about 59{7e44665ad31c7163a3225b5cdeca12ae8e1ba5a9651d05b2285576263eb8f3ac} of its resale value.
Just after five years, a new 2016 Q7 would be worth less than $28,000. Plus, given the fact that you will spend up to $6,000 to keep the Audi healthy during that period, owning one seems like a good way to waste money.
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