4 Used Luxury Cars That Are Bad Investments for Retirees
Many retirees explore used cars, prioritizing factors like dependability, ownership costs, fuel efficiency, and sticker price. However, some older drivers with the means focus on a more luxurious pre-owned vehicle. While a used luxury car can be a great purchase, it’s important to choose wisely. Here are four used luxury vehicles that may not be the best investment.
According to CarEdge, the Land Rover Range Rover depreciates quickly, retaining less than 42% of its value after five years. Maintenance and repair costs can be high. RepairPal estimates owners spend an average of $1,258 annually to keep their Range Rovers in good working order.
©Land Rover USA
On the other hand, the Mercedes-Benz G-Class holds its value remarkably well. CarEdge ranked the G-Class as the number one luxury vehicle in terms of resale value, retaining 77.81% of its original MSRP after five years. However, a good deal on a used model is hard to find.
The Cadillac XTS fits Cadillac’s history of large, expensive luxury vehicles. The 2013 redesign model, discontinued after 2019, received criticism for its ride quality. The Kelley Blue Book (KBB) fair market value of a 2019 model starts around $25,000, about half its original MSRP. While that might seem like a good deal, the XTS didn’t offer as much luxury as comparable models.
The Lexus ES 350 also retains its value, ranking second behind the Mercedes-Benz G-Class. Its five-year residual value is 71.6%. However, Car and Driver gave the 2025 model a middling score, citing a slow and unengaging ride. The Toyota Camry, on which the ES is based, offers many of the same features at a lower cost, making it a wiser choice for retirees looking for value.
