Luxury cars are notorious for their poor resale value compared to other types of vehicles. While the average new vehicle can retain 45% of its value or more after five years of ownership, this kind of retention rate is a best-case scenario for most luxury cars.
That said, some luxury vehicles hold their value better than others. Let’s take a closer look at luxury car depreciation and discover the luxury cars with the best resale values.
How Much Do Luxury Cars Depreciate Each Year?
Like all other vehicles, under normal circumstances luxury cars depreciate the most in the first year of ownership. On average, luxury cars can lose around 25% to 30% of their value after one year. Depreciation rates on average slow down after that to around 10% to 15% per year.
For luxury cars that depreciate the most, these rates can easily mean that a five-year-old model is only worth around 36% of the price you paid.
10 Luxury Cars With the Best Resale Values
From compact models to electric vehicles (EVs), SUVs to sports cars that hold their value, here are the top ten luxury vehicles with the best resale value:
1. Tesla Model X — 66%
As a rule, EVs don’t hold their value as well as gas vehicles. Less demand, doubts about battery life, and constant EV innovation on the horizon mean that used car buyers are hard to convince when it comes to going electric. But the Tesla Model X is the exception to the rule.
Thanks to Tesla’s mileage range and fashionable image the Model X retains nearly 66% of its original value after five years on average, making it the best resale luxury SUV, the best resale EV, and the best luxury vehicle overall!
2. Chevrolet Corvette — 65.3%
With unbeatable interior features, amazing specs, and an affordable price, the Chevrolet Corvette is the leading luxury sports car when it comes to resale value. Although this speedy number is fast on the road, it depreciates at a much slower rate than other sports cars, retaining about 65% of its value after five years.
3. Tesla Model S — 57%
Teslas are so sought-after right now that their luxury Model S hatchback also makes it onto our top three best resale luxury cars. As with the Model X, the Tesla name goes a long way when it comes to beating the usual luxury car depreciation rate, shown by its impressive 57% value retention after five years. EVs are a volatile market though and with more and more competition, it seems like Tesla could easily slip from these top rankings.
4. Lexus LX — 50%
Lexus is the luxury division of Toyota, a Japanese brand famed for making reliable vehicles that hold their value. As the epitome of sophistication and strength, the Lexus LX stands in a class of its own. And, by retaining 50% of its value after five years, this luxury SUV is also the best-performing Lexus on the resale market.
5. Volvo XC40 — 49%
Volvo is known for safety more than luxe appeal, making them a somewhat unexpected entry on this list of luxury vehicles. But the XC40 also boasts a youthful design, advanced tech features, and superior comfort, resulting in a unique luxury subcompact SUV that’s well-deserving of its 49% retention rate.
6. Acura TLX — 48.5%
Resale value is a good indicator of a vehicle’s quality. It’s only natural, then, that some of the best luxury vehicles are also those which retain the most value after five years.
The Acura TLX fairs well on the resale market thanks to its sophisticated appeal and reputation for reliability. While it might not be the sexiest model around, this luxury midsize car is comfortable and quiet, and it offers a steady 48.5% resale value after five years.
7. Genesis G70 — 48%
Hyundai’s upscale Genesis brand might not be as well known as Honda’s Acura or Toyota’s Lexus but the Genesis G70 is Hyundai’s attempt to change all that. Affordable, stylish, and boasting some seriously sporty handling, it’s no wonder that this vehicle has an above-average retention rate of 48%.
8. Audi A8 — 47%
Audi is one of the most respected manufacturers of luxury vehicles, but the brand’s specialty is sedans. In production since 1997, the A8 has come to represent the industry standard for luxury cars, offering refined aesthetics, superb performance, and a resale value of 47%.
9. Porsche Cayenne — 46.5%
With its superior build quality and a finish that other manufacturers can’t come close to, it’s no surprise to see that the Porsche Cayenne is one of the best resale luxury SUVs. Its 46.5% resale value is a reflection of that build quality.
10. Lexus LS — 44%
The second Lexus on our list is a sleek sedan that serves as the flagship model for the luxury division of Toyota. It might only have an average resale value compared to other luxury vehicles, but the LS’s world-class styling and extensive safety features more than make up for this.
Which Luxury Car Brand Has the Best Resale Value?
Several brands retain more than the average 45% after five years. While Tesla is now emerging as the luxury car brand with the best resale value, Audi, Acura, Porsche, and Lexus have long been consistent big names in the used luxury car market.
There will, of course, be some variation in depreciation based on the exact model. But the reliability, safety features, and undeniable luxury appeal of these brands often make them a much better investment than their competitors.
Your Guide to Luxury Cars That Hold Their Value
Luxury cars might depreciate faster than other vehicles. But as this guide shows, the luxury cars with the best resale values offer a better investment whether buying new or used.
If you’re looking to sell your luxury vehicle, we want to help you get the best price possible. For more information on buying or selling your car, get in touch with us here at Motobyo today!
