Luxury Cars: Which Ones Lose Value the Quickest?
Luxury vehicles offer exceptional style and comfort, but they often come with a hefty price tag. A significant factor to consider when buying a luxury car is depreciation — how quickly the car loses its value. Understanding which models depreciate the most can help you make a more informed financial decision.
“The majority of the reasons these cars are on the list is because they lose almost 50% of their value within five years,” said Jamie Mitri, manager at Cumberland Auto Sales and Services. Here are some of the luxury cars that have some of the worst resale values, according to experts.
Range Rover
While the allure of a Range Rover might be strong, the car’s high maintenance costs and low reliability rankings make it less appealing to secondhand buyers, according to Tomer Ruderman, founder and owner of Car Keys Ottawa. Frequent engine, electrical system, and suspension repairs drive down the resale value. Mitri added, “Parts and labor are incredibly expensive and difficult to find.”
Maserati Ghibli
For Gretchen Seidel, automotive consultant and CFEI at Seidel & Co., the Ghibli is a prime example of a luxury car with poor resale value. Maserati consistently ranks poorly in reliability studies and has had known engine issues and fuel leak recalls. Though Seidel acknowledged the car’s problems she still purchased one due to its beautiful design.
Tesla X, S
When considering a pre-owned Tesla, the potential for expensive battery failure is a significant concern for buyers. Chris Pyle, auto expert and mechanic at JustAnswer, explained that the range of an electric car decreases over time, and technological advancements quickly make older models obsolete. He likened buying an old Tesla to buying a flip phone, expecting rapid depreciation as newer models emerge.
Audi A3, A4, A5, A6, S4, Q5
While some Audi models hold their value better, the specified Audi models depreciate significantly over time due to the cost of parts, repairs, and warranties, according to Mitri. Pyle also noted that these models “were priced too high from the get-go and often are sold over MSRP value. So it is not only a loss in car value, you lose the amount that you overpaid.”
BMW
Mark Beneke, owner of Westland Auto Inc., along with Mitri and Pyle, identified BMWs as having some of the worst resale values among luxury cars. BMWs are notorious for oil leaks, faulty fuel pumps, and electrical component failures, requiring expensive parts and labor. As a result, pre-owned BMWs might struggle to attract buyers. Pre-owned BMWs may struggle to attract buyers willing to pay high maintenance fees and, therefore, “sit for sale too long, so car lots do not give them a good trade value knowing their funds are going to be tied up for a long while,” stated Pyle.
Final Thoughts
The luxury gas-powered models listed above have historically depreciated substantially. However, with the transition to electric or hybrid vehicles, these older luxury gas models might appreciate or hold their value, potentially becoming “vintage” and comparable to classic cars. Moreover, Beneke suggested that the demand for gas-powered options could remain strong if EVs are not accessible and convenient for most consumers, potentially reducing, or at least changing, their depreciation patterns.
Caitlyn Moorhead contributed to the reporting for this article.
