Used Luxury Cars to Avoid: A Financial Warning
Used luxury cars might seem like a smart investment at first glance. With their sleek designs, premium interiors, powerful engines, and prestigious badges, it’s easy to believe you’re buying appreciating assets. However, for most luxury cars, the reality is quite different.
A recent study by iSeeCars found that many luxury vehicles experience some of the steepest depreciation rates on the market. This rapid depreciation, combined with brutal maintenance costs and reliability issues, can quickly drain your money. Here are some used luxury cars that middle-class buyers should avoid, based on the latest iSeeCars data.
1. Jaguar I-PACE: A Rapidly Depreciating Electric Vehicle
The Jaguar I-PACE tops the list of worst depreciators, losing a staggering 72.2% of its value within just five years. This translates to roughly $51,953 being wiped away from its original price. Despite its cutting-edge design, the I-PACE’s rapid depreciation and potential out-of-warranty repair costs make it a risky choice for middle-class buyers.
2. BMW 7 Series: Luxury at a Steep Price
The BMW 7 Series promises luxury but delivers a sharp drop in value — about 67.1% gone in five years, costing you roughly $65,249. Earlier models were also infamous for high-pressure fuel pump failures, causing pricey repairs and widespread recalls.
3. Tesla Model S: Electric Luxury with a Depreciation Catch
The Model S electrified the luxury market, but its depreciation rate might shock you. It loses around 65.2% of its value within five years, amounting to about $52,165. While electric cars have fewer moving parts, out-of-warranty battery replacements and specialized repairs can quickly add up.
4. Infiniti QX80: A Full-Size Luxury SUV with High Costs
This full-size luxury SUV loses about 65% of its value in five years, shedding more than $53,500. High fuel costs and maintenance expenses further erode its appeal for buyers looking to save money.
5. Maserati Ghibli: Italian Style at a Financial Strain
The Ghibli offers Italian style and speed, but it comes at a steep price. It loses nearly 64.7% of its value in five years, wiping out over $70,000. Add expensive maintenance and reliability concerns, and it’s clear this Maserati is better admired than owned.
6. Maserati Levante: Another Maserati to Avoid
Another Maserati makes the list. The Levante SUV drops around 63.7% of its value within five years, equating to a loss of nearly $65,000. Coupled with high maintenance and repair costs, it’s a luxury SUV that can quickly become a financial burden.
7. Land Rover Range Rover: Prestige with Costly Repairs
The Range Rover radiates prestige and adventure, but loses around 62.9% of its original value within five years, according to iSeeCars. Frequent engine, suspension, and electrical issues mean costly repairs are almost guaranteed.
8. Audi A8 L: Tech-Rich but Expensive to Maintain
Audi’s flagship sedan boasts tech-rich features and elegant styling, but it depreciates 62.7% in five years, losing about $57,724. Complicated electronics and delicate air suspension systems make it an expensive car to maintain once out of warranty.
9. Cadillac Escalade ESV: Bold Presence but High Costs
The Escalade ESV delivers a bold presence, but its 61% depreciation rate after five years — a loss of nearly $57,000 — quickly cuts its value. High running costs, from fuel to repairs, make this SUV a luxury best avoided if you’re watching your wallet.
The Bottom Line
While used luxury cars can be tempting, the specific models highlighted often bring steep depreciation, high repair costs, and financial strain that most middle-class buyers can’t easily absorb. Steering clear of these vehicles is the smarter financial move.
