By Mike Ochonma
Globally, car values are all over the map right now. Used vehicles that were worth a small fortune earlier this year are now coming back to Earth, but the new vehicle supply remains tight. Prices are still elevated overall, but some models have seen more severe price drops. Depreciation strikes almost every model, supply constraint or not, though a few vehicles are leading the way.
New research from analytics iSeeCars found that a handful of cars depreciated more than 50 percent over five years, with the BMW 7 Series dropping 56.9 percent and an average price cut of $61,923 over that time.
Here are the vehicles with the highest depreciation or worst resale value over five years: BMW 7 Series: -56.9 percent. Maserati Ghibli: -56.3 percent, Jaguar XF: -54 percent, Infiniti QX80: -52.6 percent, Cadillac Escalade ESV: 52.3 percent, Mercedes-Benz S-Class: 51.9 percent, Lincoln Navigator: -51.9 percent, Audi A6: -51.5 percent, Volvo S90: -51.4 percent, Ford Expedition: -50.7 percent.
iSeeCars’ research showed that midsize trucks, sports cars, and fuel-efficient vehicles were slowest to depreciate over five years, while it’s clear that luxury brands tend to lose value much faster. As iSeeCars’ Executive Analyst Karl Brauer explained, used buyers don’t value high-end vehicles’ features as much as the first owners, so resale values tend to be softer. The tech and options that made the cars so expensive and appealing new don’t add the same value on the used market.
Interestingly, electric vehicles also depreciated quite heavily, though they were just short of the abysmal numbers in luxury segments. The Nissan Leaf depreciated most among EVs, dropping by 49.1 percent. The average EV depreciation is 44.2 percent, with the Tesla Model S and Model X sliding in right under the bar at 43.7 and 38.8 percent, respectively.
As iSeeCars notes, it’s important to be vigilant when car shopping and not let your emotions win over reason. Shiny new luxury cars look great in the showroom, but you could end up taking a bath when you try selling them a few years later on.
