This Luxury Brand Has the Worst Resale Value
In a recent study ranking certain luxury cars on their five-year depreciation rates, one such brand is among the absolute worst. When you buy a luxury car, you expect it to be upscale, high-quality, and durable in every detail.
But if you buy a Land Rover, you can expect terrible depreciation rates. It might just sway your decision when it comes time to buy. Let’s dive into the luxury brand with the worst resale value.
Why today’s car consumers care about resale value
It’s certainly no secret that when it comes to investments, you will lose money when buying almost any vehicle. The value of a new car will diminish the second you roll off the dealership lot. But you can be smart about minimizing that depreciation if you know which vehicles hold their value longer and better.
Today’s consumers are driving their cars longer than ever before. However, when it comes time for you to trade in or sell, they want to know they can command the most possible asking price. But there’s more, as Lending Tree points out, regarding financing.
Depreciation will influence if you owe more on your auto loan than the car’s worth. It will factor into your overall luxury car cost of ownership. Choosing a luxury brand with the worst resale value could translate to thousands of dollars lost.
The one luxury brand with the worst resale value over five years
Car Edge sifted through the data regarding today’s most popular luxury cars and upscale brands to rank those with the worst three-, five-, and seven-year depreciation rates. Some brands with tanking depreciation rates in the five-year category include Jaguar, Infiniti, and Mercedes-Benz. But one luxury brand among the ranks that might surprise you is Land Rover.
Land Rovers are a joy to drive, known for their incredible capabilities as go-anywhere vehicles and top-notch luxury components. But prepare to lose a lot of money if you own one.
Along with high sticker pricing and pretty steep maintenance expenses, Land Rover vehicles significantly drop in value quickly, according to Car Edge. Based on the analytics, Land Rover models average a five-year resale value of only 65.48% of their original MSRPs.
Depreciation examples with Land Rover models
Some Land Rover models have higher depreciation rates than others. For example, the Range Rover Sport is the least offending in the lineup. Car Edge estimates that the Range Rover Sport will only lose 42% of its value after five years. It retains more value than others, like the Land Rover Discovery, which is expected to lose 47% over five years.
Based on the Car Edge calculator, the Land Rover Range Rover will drop a whopping 56% after five years. Another popular Land Rover is the Range Rover Evoque. Its depreciation calculates to be 43% of its original value by the five-year mark. And the Land Rover Range Rover Velar will lose 47% of its sticker value in five years.
When you buy any vehicle, you should carefully consider the depreciation rate, as it might affect your financing and the overall cost of ownership in a negative way. And if you’re eyeing a luxury car, be mindful of these brands with higher-than-average depreciation estimates.
Land Rover is one of the best luxury brands regarding performance, driving dynamics, high-quality materials, and upscale touch points. But it also happens to be the luxury brand with the worst resale value.
