When buying a car, understanding depreciation is key, as it directly affects the vehicle’s long-term value and ownership costs. While all cars lose value over time, some brands depreciate much faster than others. Factors like the initial purchase price, market demand, brand reputation, and the release of newer models with better features play a significant role in this. So, let’s explore the brands that depreciate more quickly than the average vehicle.

Maserati Quattroporte

Luxury vehicles, particularly those like the Maserati Quattroporte, often come with high maintenance and repair costs. Potential buyers in the used car market are wary of these expenses, leading to a quicker drop in value. Frequent issues and the need for costly repairs deter second-hand buyers, which pushes the depreciation rate higher. On average, the Quattroporte depreciated by about 65% over five years.

BMW 7 Series

The BMW 7 Series typically depreciates by about 62% over five years. Ownership expenses include scheduled maintenance, normal wear and tear, and expected repairs. While these costs can be considerable, they do not include any free warranty work performed. The high cost of maintaining a BMW 7 Series can deter potential second-hand buyers, contributing to its rapid depreciation.

Maserati Ghibli

Parts for the Ghibli can be difficult to source and replace, leading to higher service costs. Even routine maintenance, such as an oil change, can significantly deplete your bank account because Maseratis requires fully synthetic oil, which is more costly than conventional options. Due to its high maintenance costs, it depreciates by about 61% over five years.

Cadillac Escalade ESV

As a flagship luxury SUV, the Escalade ESV comes with a hefty price tag. While this positions it as a status symbol, it also sets a high starting point for depreciation. Luxury vehicles, in general, tend to lose value rapidly in their first few years, and the Escalade ESV is no exception, with its depreciation rate of 59% over five years.

BMW X5

The BMW X5 is known for its dynamic performance, advanced technology, and elegant design. However, despite its many strengths, the X5 experiences a significant depreciation of 58%. Ownership of a BMW X5 involves considerable maintenance and repair expenses. These high costs can deter potential buyers in the used car market, contributing to its rapid depreciation. Regular maintenance, expensive parts, and specialized service requirements all play a role in driving these costs up.

INFINITI QX80

Some owners of the INFINITI QX80 have faced problems such as rough shifting, delayed engagement, and, in severe cases, complete transmission failure. Various factors, including a faulty transmission control module, worn-out internal components, or electronic glitches, can cause these transmission issues. Such reliability concerns can significantly impact the vehicle’s resale value, contributing to its rapid depreciation of 58%.

Maserati Levante

Italian cars, in general, have a reputation for being less reliable, and Maserati is no exception. This perception, combined with high maintenance costs, makes them less desirable in the resale market. By the time they are traded in, many Italian models, including the Levante, are considered outmoded and less appealing, often with high depreciation rates (58%).

Jaguar XF

The higher the initial purchase price of a new vehicle, the more significant the impact of depreciation, and this holds true for the Jaguar XF. This executive sedan, although lauded for its exceptional driving experience, falls short in other areas that contribute to its swift depreciation of about 58%. Despite being one of the best in its class to drive, the Jaguar XF is criticized for its lack of a flashy interior and hushed refinement, aspects that are highly valued in the luxury car market.

Audi A7

This car experiences a depreciation rate of approximately 57%. As a luxury brand, Audi vehicles are frequently leased. Consequently, when these leases end, many used Audis flood the market. The high supply, coupled with a relatively lower demand for luxury vehicles, drives down the resale prices.

Volvo S90

With a depreciation rate of about 55.8%, the Volvo S90 exemplifies a challenging trend in the luxury sedan market. In the luxury segment, the S90 competes against established German brands like BMW and Mercedes-Benz, as well as Lexus. However, it often falls short in perceived prestige and driving dynamics compared to these competitors. Buyers seeking luxury sedans typically lean towards German engineering or the reliability of Lexus, which negatively impacts the S90’s resale value.

BMW 5 Series

While the car offers a blend of performance, luxury, and technology, its rapid depreciation of 55.3% underscores the challenges luxury vehicles face in maintaining value over time in a competitive and evolving automotive market. As newer generations are introduced with updated features and designs, older models lose their appeal, significantly impacting their resale prices.

Audi A6

The Audi A6 stands out as one of the fastest-depreciating models in recent years, with a staggering depreciation rate of approximately 56.3%. This depreciation is compounded by notorious reliability issues that have plagued owners and investors alike. It has been notably afflicted by serious engine and transmission problems, creating significant concerns for its resale value and long-term ownership costs.

Nissan Armada

This SUV is notorious for several recurring issues, including brake malfunctions, frequent incidents of the overhead console falling down, and failures of the catalytic converter. Owners have reported these problems, which have contributed to its depreciation of 55.7% over a period of five years.

Mercedes-Benz S-Class

Known for its stellar performance, the S-Class has a depreciation rate of 46% due to factors like lower fuel efficiency, particularly with larger engine variants. Moreover, owning a Mercedes S-Class involves substantial servicing and maintenance costs due to its sophisticated technology and premium components.

Lincoln Navigator L

The Lincoln Navigator L depreciates sharply, losing around 55.5% of its value over five years. This steep depreciation is driven by its high initial purchase price, which leads to substantial devaluation as newer models with enhanced features emerge. Its large size and lower fuel efficiency compared to smaller SUVs also add to its depreciation, along with higher maintenance costs and market perceptions within the competitive luxury segment.