A recent study by iSeeCars has revealed the models of cars that depreciate the fastest over a five-year period, and it’s no surprise that luxury brands dominate the list. While the saying that cars lose a significant portion of their value as soon as they leave the dealership isn’t entirely accurate these days, most vehicles do experience a steady decline in value over time.
Topping the list of fastest-depreciating cars is the Maserati Quattroporte, with a depreciation rate of 64.5% over five years. Following closely behind are the BMW 7 Series and Maserati Ghibli, with depreciation rates of 61.8% and 61.3% respectively. Other luxury models on the list include the BMW 5 Series Hybrid, Cadillac Escalade ESV, BMW X5, Infiniti QX80, Maserati Levante, Jaguar XF, and Audi A7.
Interestingly, the list of slowest-depreciating vehicles is dominated by sports cars, hybrids, and trucks. However, luxury brands make up all of the top ten fastest-depreciating models. This highlights a disconnect between what automakers are producing and what consumers actually desire, as noted by iSeeCars executive analyst Karl Brauer.
According to the study, the average five-year depreciation rate for all vehicles is 38.8%. This marks an improvement of almost 11% compared to figures from 2019. However, certain vehicle types perform worse than others in terms of depreciation. Electric vehicles (EVs) depreciated by 49.1% over five years, while SUVs dropped by 41.2%. On the other hand, trucks only experienced a depreciation rate of 34.8%, and hybrids fell by 37.4%.
Brauer highlighted the fact that all vehicles now depreciate at a slower rate than they did five years ago. Nevertheless, EVs may not be the best choice for those looking to minimize depreciation. However, used EVs can offer excellent value for money, as they can save buyers thousands of dollars compared to their new counterparts. While concerns such as charging times and availability still exist in certain regions, a heavily depreciated EV could be an attractive option in the used car market.
The same principle applies to used luxury vehicles, as indicated by the aforementioned list. While buyers of new luxury cars may experience significant depreciation during their ownership, this means that the used luxury car market is flooded with affordable options. However, it’s important to consider the potential high repair costs and expensive maintenance schedules that come with used luxury models.
