Here’s some good news and bad news about buying a new car. The good news is that you can impress your friends and turn everyone’s heads. The bad news? That car may be a money pit, depreciating so much in value that you wish you never bought it.
In fact, some cars depreciate so quickly that you can hear money leaving your wallet. Therefore, before you contemplate putting money in that sedan or SUV, check out this list of 10 cars with the highest depreciation rates.
Why Do Cars Depreciate in Value?
Large SUVs and luxury cars have been affected the most this year when it comes to losing resale value. Which begs the question, what makes a car depreciate in value? Let’s take a quick look at a few of the top reasons.
- Age and mileage — Like other depreciating assets, cars will lose their value over time due to aging, wear and tear, and usage. Also, the more miles a car accumulates, the more likely it will be to have mechanical problems.
- Repair and maintenance costs — Potential buyers will be hesitant to pay more for a car that will require lots of repairs and maintenance in the future. Reliability is important.
- Market forces — Factors such as the economy, supply and demand, and interest rates play an important role in the depreciation of cars.
While it is inevitable that your car will depreciate, you can slow down the process through a few tactics. Maintain your car properly and service it regularly, keep the miles low, clean it frequently, avoid aftermarket modifications, and lastly, sell it at the right time of the year.
10 Cars With the Fastest Depreciation
Now, let’s look at the top 10 cars with the fastest depreciation rate.
10. Ford Expedition 50.7%
Loved for its spacious interior, advanced technology, and powerful engine, it’s no surprise that the Ford Expedition is a popular choice among families. But when it comes to depreciation, this SUV isn’t the strongest contender.
Like typical SUVs, the Expedition is costly upfront and equally expensive to fuel and maintain. The result is a plunge in value in the first few years of ownership. And while it doesn’t depreciate as quickly as most SUVs in its class, expect it to lose 50.7% of its value within five years.
9. Volvo S90 51.4%
Since its release in 1990, Volvo S90 has been a go-to choice for those looking to prioritize luxury and safety. Its comfortable interior and sleek design is what everyone wants for their cars. But only for a few years.
In the course of three years, the S90 has a car depreciation rate of 51.4%, losing more than half of its value. Alarming? Yes. But does this mean buying this car isn’t a worthy investment? That’s up to you to decide.
8. Audi A6 51.5%
It’s sleek, it’s sophisticated, and it’s luxurious. The A6 has a reputation for being a top-tier luxury car — from its sophisticated design to cutting-edge technology, there’s everything to love about this car.
Even so, this beauty isn’t immune to market forces. With a 51.5% depreciation rate, expect to sell this car for less than half of what you bought it for after just three years.
7. Lincoln Navigator 51.9%
Another SUV on the list, this time the Lincoln Navigator. As expected, an SUV loses its resale value faster than smaller, more fuel-efficient cars. This means you won’t get as much money back if you decide to sell the Navigator after 5 years.
Its value plummets by around 51.9% after five years. Based on this, it may be wiser to look elsewhere for a luxury SUV.
6. Mercedes-Benz S-Class 51.9%
Mercedes is always releasing new and updated models. And while this is excellent news to the average consumer, it also means that less buyers will want to buy the previous models. The result is that Mercedes is among the brands whose cars depreciate the highest, and the S-Class is a culprit.
Even with all its goodies, the S-Class will lose 51.9% of its value after five years.
5. Cadillac Escalade ESV 52.3%
You’re not familiar with comfort unless you are inside a Cadillac Escalade. With its huge size and aggressive look, this SUV is in the same class as bigwigs such as the Chevy Tahoe and Lincoln Navigator.
Even with all this, it is still among the vehicles that depreciate the most in 2023. With a depreciation rate of 52.3%, it won’t be that appealing in the next few years.
4. Infiniti QX80 52.6%
The Infiniti QX80 is a full-size SUV and a close rival to the Escalade. Don’t let its simplicity fool you — this is one of the most comfortable SUVs you’ll come across. But before you get excited, there are two drawbacks to consider.
One, as expected, the SUV is expensive upfront. And secondly, if you bought it at $65,000, you’ll only be able to sell it for $26,000 after five years. Not the news anyone wants to hear.
3. Jaguar XF 54.0%
The Jaguar XF shares a lot of similar features with its cousin, the XE. It offers different powerful engine options and an engaging driving experience. But if you bought the XF today and sold it after five years, it would only be worth 46% of what it is today.
2. Maserati Ghibli 56.3%
If you want to enjoy a feeling of sporty luxury, only a few automobiles can match the Maserati Ghibli. This Italian machine performs impressively, no doubt about that. But even with this and its style, it will lose 56.3% of its value after a couple of years.
1. BMW 7 Series 56.9%
Saving the best — or in this case — worst for last. Every car wants to be first on the list, except when that list is of who depreciates the most. And sadly, this award goes to BMW 7 Series.
With a depreciation rate of 56.9%, be prepared for a massive financial hit when it is time to sell or trade in this car. No amount of power and comfort makes it a worthy investment.
Death, taxes, and car depreciation are three inevitable things. Almost any car will depreciate the minute you drive it out of the dealership. The difference is that some cars will depreciate a lot faster than others.
So, before you decide to buy or sell your car, use the Motobyo quick cash offer tool to get an estimate of your car’s value. Shopping for an automobile has never been this simple.