Ranked: Which Cars Depreciate the Fastest?

Visual Capitalist ^ | 12/18/2023 | By Marcus Lu, Article/Editing: Pallavi Rao, Graphics/Design: Miranda Smith

[SeekAndFind]

It’s a fact of life that vehicles depreciate - some say by almost 50% as soon they’re driven out of the lot. Some depreciate less, but which cars depreciate the fastest?

In the graphic below, Visual Capitalist's Marcus Lu and Pallavi Rao show the top 10 vehicles with the highest depreciation rates over five years, based on data from iSeeCars.

They analyzed over 1.1 million used cars from model year 2018, sold between November 2022 to October 2023. Models no longer in production as of the 2022 model year were excluded.

Luxury Cars Struggle to Hold Their Value

At the top of the list, the Maserati Quattroporte loses nearly two-thirds of its value after five years. First introduced in 1963, the car is Maserati’s flagship, and is on its sixth iteration as a four-door luxury sedan, with a high performance Ferrari–made V6 or V8 engine.

The 2018 version of the car retailed anywhere between $109,000–$140,000, depending on the model.

Here’s a look at the full list of fastest depreciating cars in the U.S.

Rank	Model	Average 5-Yr Depreciation	Average Difference from MSRP
1	Maserati Quattroporte	65%	$90,588
2	BMW 7 Series	62%	$72,444
3	Maserati Ghibli	61%	$58,623
4	BMW 5 Series (Hybrid)	59%	$37,975
5	Cadillac Escalade ESV	59%	$63,885
6	BMW X5	58%	$44,828
7	INFINITI QX80	58%	$47,399
8	Maserati Levante	58%	$55,858
9	Jaguar XF	58%	$39,720
10	Audi A7	57%	$48,917
11	Audi Q7	57%	$41,731
12	Cadillac Escalade	57%	$59,093
13	Audi A6	56%	$38,252
14	Volvo S90	56%	$35,365
15	Nissan Armada	56%	$36,875
16	Mercedes-Benz S-Class	56%	$70,563
17	Lincoln Navigator L	56%	$57,224
18	Mercedes-Benz GLS	56%	$54,523
19	Tesla Model S	56%	$60,145
20	BMW 5 Series	55%	$39,856
21	BMW X5	55%	$39,992
22	Lincoln Navigator	55%	$53,582
23	BMW X5 M	54%	$66,277
24	Land Rover Range Rover	54%	$68,874
25	Cadillac XT5	54%	$31,737
N/A	Overall	39%	$17,221

Note: MSRP stands for Manufacturer Suggested Retail Price, the price recommended by a product’s producer to retailers. Furthermore, MSRPs from 2018 were inflation-adjusted to 2023 dollars.

BMW’s 7-series and 5-series also lose value quickly (nearly 60% of their retail price), ranking second and fourth respectively.

Another Maserati car, the Ghibli comes in third (-61%), and the Cadillac Escalade ESV (-59%) rounds out the top five fastest depreciating vehicles.

From a quick glance through the ranks, the cars that depreciate the fastest are luxury vehicles, specifically luxury sedans. These types of cars are often leased, and supply increases dramatically once the lease period expires. Meanwhile, most owners who can afford a luxury car would prefer to buy a new model, while used-car owners would prefer not to pay a high premium on an already outdated model.

However, there’s another segment of the market that also drops in value quickly—electric vehicles. Analysis found that EVs lose roughly 49% of their value on the resale market, the worst amongst the categories specified.

Rank	Segment	Average 5-Yr Depreciation (%)
1	EVs	49%
2	SUVs	41%
3	Hybrids	37%
4	Trucks	35%
N/A	Overall	39%

A lack of larger demand appetite, as well as a plethora of government incentives pushing people to buying new electric vehicles could explain their faster than average depreciation rate. Trucks on the other hand are the slowest depreciating segment of all vehicles in the U.S.

[Nateman]

I figured electric cars would devalue the most. Those batteries need to be replaced and doing so costs more than the car is worth. These lemons would be nowhere near the market share they now hold if not for heavy government interference.

[Gene Eric]

There’s not much of an appeal for used luxury vehicles unless one is a teenage male who doesn’t have any money.

Is there a Pickup Truck depreciation report?

[Gene Eric]

EVs are subsidized to begin with, so they have dubious value notwithstanding the battery point you made.

[Berlin_Freeper]

The one you buy since others have no value to you.

[Dr. Sivana]

There’s not much of an appeal for used luxury vehicles unless one is a teenage male who doesn’t have any money.

I'm 60, and I would love a used full-sized luxury car. Great for long trips, comfortable commutes.

Even with the discounts, they are priced out of my range, and I prefer the old-school luxury cars that have not been made for decades.

[Dr. Sivana]

I figured electric cars would devalue the most. Those batteries need to be replaced and doing so costs more than the car is worth.

EVs have a big upfront investment. EV buyers will likely hold onto them longer to wring the value out of them. High end luxury car buyers are often owners who can afford frequent replacements, so they replace in five years. Audi owners want to replace before stuff starts breaking.

[doorgunner69]

Audi was a great laugh decades ago for losing half it’s value driving off the dealer lot.

[allendale]

What fool would buy a used GM or Ford EV? Or for that matter new Ford or GM EV.

[drwoof]

Yep. Caddies, Lincolns, Crown Vics... Plush, powerful cars you could drive all day and not get exhausted.

[pepsionice]

I would agree...Audis from the 1970s were a joke on holding value. Somewhere in the 1990s, they changed course. I hold a 2007 Audi TT...still holds a value of $7000 to $8000. Still has original muffler...original battery was only replaced a year ago. For the original $30,000...the car will make it to the 20-year point easily and still hold 20-percent of value.

[Gene Eric]

I hear ya. We buy used (lease returns), but choose models that have known reliability and can be warrantied. This typically involves a major dealer. The bigger engines are preferable along with a navigation package. Agreed that heavy sedans are ideal for long trips.

[Right_Wing_Madman]

I'm 60, and I would love a used full-sized luxury car. Great for long trips, comfortable commutes.

2018 Cadillac ATS with 3.6L 335 HP engine. Leather seats, navigation system, sunroof/moonroof. Under 30,000 miles. $22K.

https://www.cargurus.com/Cars/inventorylisting/viewDetailsFilterViewInventoryListing.action?zip=78023&inventorySearchWidgetType=AUTO&sortDir=ASC&sourceContext=cvd&distance=500&sortType=DEAL_RATING_RPL&entitySelectingHelper.selectedEntity=d2138#listing=374273372/NONE/DEFAULT

[Pelham]

One of my friends owned a 2014 Tesla S. When he traded it in order to buy a 2021 Tesla S his battery was still charging to over 80%. He wanted the 2021 model because it has hardware upgrades that the 2014 lacks.

[ProtectOurFreedom]

I don’t worry about depreciation. I’ve got a 2014 Ford Expedition with 94k. Nearly trouble-free. Bought used in 2017 with 25k.

My wife has a 2014 Mercedes GLK (baby SUV) with 115k. It was a dealer demonstrator / loaner with 5k.

We are both retired and early 70s, so these might be our last cars. It would be nice to have one car newer than ten years old, though, but both are still in tip-top shape.

[ProtectOurFreedom]

You might pick up one of those lux cars cheap, but you’ll pay through the nose for any maintenance.

[Ex-Con777]

People who can afford an overpriced luxury car do not buy 5 year old models. They buy new. There is not a big secondary market for overpriced used cars.

EC

[whitney69]

“...they are priced out of my range...”

Noteworthy. Did anyone besides myself and the Dr. notice that the ones that depreciate the fastest are the ones most can’t afford to begin with?

wy69

[Fido969]

Sounds like they are good deals as used cars.

And they seem to be. A few years ago you can get a loaded Beemer with 60,000 miles around here for about the cost of a used Honda.

[MountainWalker]

Losing 20% of what was borderline acceptable range to begin with over 7 years is not great.