10 Automobiles That Lose Most of Their Resale Worth in 5 Years
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Status-seeking luxury brand buyers and frugal environmentalists rarely find themselves in the same category.
But both groups tend to drop dramatically in the value of the cars they prefer, according to a new analysis by iSeeCars.
The automotive search engine and research website says luxury cars make up the vast majority of the 10 vehicles with the highest depreciation rates after five years, with most of them being luxury sedans.
In the meantime, being kind to the earth according to the rankings can be detrimental to your wallet. Two electric vehicles – including a luxury electric vehicle – also had the dubious honor of taking the top two spots.
The vehicles with the worst depreciation rates are:
- Nissan LEAF: Loses an average of 65.1% of its value after five years
- BMW i3: 63.1%
- BMW 7 Series: 61.5%
- Maserati Ghibli: 61.3%
- BMW X5: 60.3%
- Jaguar XF: 59.5%
- BMW 5 Series: 59.1%
- Audi A6: 58.2%
- Lincoln Navigator L: 57.7%
- Volvo S60: 57.3%
Karl Brauer, executive analyst at iSeeCars, says luxury vehicles tend to have high operating costs and technology that quickly becomes obsolete – traits that used car buyers don’t appreciate. The dwindling popularity of sedans means that such luxury models are even less sought after these days.
Even environmentally friendly cars are quickly depreciated by several factors, says Brauer:
“Electric vehicles like the first-generation Nissan LEAF are quickly becoming obsolete due to the rapid advances in range and battery life, as the early LEAF batteries were only expected to last eight to ten years. Government incentives like the $ 7,500 tax credit also play a role in the heavy depreciation of the LEAF as its resale value is based on its original MSRP but real transaction prices when new are effectively $ 7,500 lower. “
On the other end of the spectrum, the Jeep Wrangler and Jeep Wrangler Unlimited hold up their value better than any other vehicle. As a rule, they only lose 9.2% or 10.5% of their value after five years.
“Jeep Wranglers are known for maintaining their value on all terrain, especially off-road, because of their enthusiastic fan base, durability and performance. The Jeep Wranglers have also retained their iconic design, so that even older models do not appear out of date. “
The average depreciation rate for all cars included in the study was 40.1%.
In its analysis, iSeeCars looked at more than 8.2 million vehicles from the 2016 model year.
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