You would think that of all the cars out there, luxury cars would retain the most value over time. After all, they’re associated with opulence, status, performance, and high-end features.
However, long-term value is not something associated with this class of vehicle. In this article, we’ll cover the 9 luxury cars with the worst resale value to help you make the smartest car-purchasing decisions.
How Much Do Luxury Cars Depreciate Each Year?
On average, luxury vehicles will lose 50% or more of their total value within the first five years of ownership. Of course, many luxury cars will depreciate much faster over that same amount of time, and it has everything to do with luxury car depreciation factors.
While all cars follow a similar pattern of depreciation factors, luxury cars are incredibly vulnerable to:
- High maintenance costs
- High-tech features that become outdated
- Reliability concerns
- Buyer “type”
Essentially, buying a luxury car is associated with prestige — hence the high premium on the initial price tag. The typical luxury car buyer is someone who can afford to keep up with this prestige by upgrading to a new luxury vehicle every three to four years. Having said that, those who can afford to buy new luxury cars aren’t usually shopping for one that’s used (with a few exceptions).
Therefore, luxury car owners tend to remarket their “near new” vehicles at a quicker-than-average rate. This leaves a lot more supply than demand on dealers’ lots, which drives down their larger price tags.
Luxury Cars With the Worst Resale Value
Not all luxury cars depreciate at the same rate, but it’s a sure bet that they will depreciate at a faster rate than their more mass produced counterparts. So, which are the luxury cars with the worst resale value?
1. Jaguar F-TYPE
The Jaguar F-TYPE is objectively beautiful from the inside out. Its models have optional V8 engines, all-wheel drive systems, excellent audio systems, and premium leather.
Unfortunately, even a very low mileage F-TYPE is predicted to depreciate by approx 43% by the five-year mark. The 2024 F-TYPE is scheduled to be the last of its kind, which will most likely only accelerate the depreciation rate.
2. Mercedes-Benz GLC-Class
While the GLC-Class Mercedes has a softer decline in depreciation compared to other models on this list, it’s still ranked in the top 10 luxury vehicle depreciation chart.
The GLC-Class will depreciate by 46% after the first five years, which means it’ll have a resale value of $30,862 by then. In a decade, it’ll only be worth $18,500 at the most.
3. Mercedes-Benz GLE-Class
The GLE isn’t much different from its previous iterations, aside from certain tech features and engine modifications. This is likely how it’s kept as an affordable luxury SUV marketed to luxury enthusiasts that can’t afford a hefty premium.
Of course, no matter how much power the GLE-Class Mercedes packs, it’ll still depreciate by at least 56% after five years offering a residual value for a loaded model at only $39,642.
4. Audi A7
The Audi A7 was another popular luxury sedan that featured elements of a coupe to gain its hatchback curves and comfortable cabin with lots of cargo space. It also came with an impressive fuel economy, making it worth paying a premium.
However, after five years, the A7 loses 53% of its value. That’s more than a $30,500 difference.
5. Infiniti QX80
The QX80 is Infiniti’s largest and most expensive luxury SUV. It combines all the plush, family-friendly features and technology with a towing capacity that can rival most vehicles in its class.
After five years, all of that luxury goes out the window as the QX80 loses 53% of its value — and then another $15,000 within the following few years.
6. Land Rover Range Rover
One of the most popular luxury sports SUVs, the Range Rover is the standard when it comes to off-road capabilities combined with premium materials, excellent handling, and plenty of comfort for on-the-road drives.
Unfortunately, the Range Rover is not only expensive to buy but it loses up to 56% of its residual value by the age of five.
7. BMW 7 Series
The 7 Series has been consistently referred to as BMW’s “most luxurious and advanced” vehicle yet. It delivers a whole bunch of improvements from the chassis and suspension to better handling — plus an illustrious aesthetic.
The base 7 Series comes with a $96,695 price tag. However, by year five it’ll lose 53% of that price tag rendering it to a resale value of around $50,000.
8. Mercedes-Benz S-Class
The S-Class Mercedes has maintained its leading position in the market, even against the BMW 7 Series and Audi A8. It comes with a laundry list of tech features, the perfect amount of space and comfort, and it drives like heaven.
However, in true Mercedes form, the S-Class has a five-year depreciation rate of 43%.
9. Cadillac Escalade ESV
The Escalade is the epitome of opulence and the ESV model is what makes that opulence family-friendly. They’re also known for being among the most reliable SUVs on the market, which isn’t usually something that’s associated with most luxury vehicles (with a few exceptions).
However, the king of SUVS depreciates by 41% within five years, which should make new Escalade shoppers pause when considering this vehicle with its eye-popping MSRP of $104,543.
Motobyo Can Help!
It’s safe to say that luxury vehicle depreciation is in the second-hand buyer’s favor. Of course, that’s assuming the vehicle in question has a decent reliability rating and favorable mileage. Whether you’re looking to buy or sell a luxury vehicle, Motobyo can help you get the best price possible.
Learn how our car buying and selling platform works today!