10 Luxury Cars With Highest Depreciation After 5 Years of Ownership
The vast majority of cars depreciate over time. However, luxury cars typically depreciate the most compared to other automotive segments. With their high retail prices, luxury cars usually drop considerably in value after buying one new. Find out the 10 luxury cars with the highest depreciation after 10 years of ownership.
What luxury cars depreciate the most?
On average, luxury cars lose around 40-50% of their original value in the first five years of ownership, as detailed by HotCars. However, some luxury cars depreciate even more. Here are the luxury cars high the highest depreciation after five years:
- BMW i3: 68% depreciation
- Mercedes-Benz GLE500: 65% depreciation
- Land Rover Range Rover: 63% depreciation
- Audi A8: 62% depreciation
- Mercedes-Benz SL550: 62% depreciation
- Jaguar XF: 61% depreciation
- BMW 750i xDrive: 61% depreciation
- Porsche Panamera: 61% depreciation
- Infiniti QX80: 60% depreciation
- Audi Q7: 59% depreciation
BMW i3 is the luxury car with the highest depreciation after five years of ownership
With an average depreciation rate of 68%, the all-electric BMW i3 compact hatchback takes the top spot as the luxury car that deprecates the most after five years of ownership. Launched in 2013, the i3 was BMW’s first mass-produced zero-emissions vehicle. Since then, the German automaker has sold around 250,000 units of the i3 worldwide.
However, BMW now offers other electric vehicles, including the i4 and iX. These BMW EVs provide better performance and driving range, which lessens the demand for the i3. Also, BMW plans on ending production of the i3 in July 2022, and it was already discontinued in the U.S. market. The estimated depreciation rate of the i3 after 10 years is even more extreme — with it losing 81% of its value.
Mercedes-Benz GLE500 has a very high depreciation rate
The Mercedes-Benz GLE500 midsize luxury SUV takes the second spot for the luxury car that depreciates the most after five years of ownership, with a depreciation rate of 65%. It has some positive attributes, including an attractive design and a luxurious interior, but a major drawback is its significant drop in value.
As detailed by HotCars, if you bought a new “GLE500 for around $83,000, and take up an average of 12,000 miles annually, after five years, the luxury SUV would be worth less than $30,000.” However, “if you buy a two-year-old GLE500, you may save up to $30,000.”
Land Rover Range Rover loses much of its value after five years
Another luxury SUV that loses much of its value after five years of ownership is the Land Rover Range Rover, with a depreciation rate of 63%. Much of this depreciation is tied to the cost of repairs and maintenance for the Range Rover. While the Range Rover is a highly capable SUV and offers a plethora of luxurious amenities, the drop in value is a big drawback. If you want to save some money, you might be better off buying a used two-year-old Range Rover.
Luxury cars are very appealing. However, along with the high original price, they tend to depreciate considerably. With models such as the BMW i3, Mercedes-Benz GLE500, and Land Rover Range Rover, the significant drop in value after five years of ownership means that you might not get as much money as you hoped if you decide to sell it.
