Luxury Sedans And EVs Have Some Of The Worst Depreciation Rates

Luxury cars are loaded with comfort and convenience features, but that makes them pretty expensive. However, this doesn’t mean customers can’t score a good deal on a slightly used model.

As part of a study, iSeeCars analyzed more than 4.8 million vehicle sales to determine how much value they lose after three years. According to their findings, the average model has a depreciation rate of 38.2% but certain vehicles fare significantly worse.

The car with the worst depreciation was the Acura RLX which loses 55.8% of its value after three years. This means buyers can pick up the lightly used luxury sedan for just $28,259.

If that’s too pricey, perhaps the Lincoln MKZ is more to your liking. It loses 55.6% of its value after three years and this means buyers can get their hands on one for around $19,855.

If you’re starting to notice a trend, you should. The entire top ten list of vehicles with the worst depreciation was full of luxury sedans.

The Mercedes E-Class came with third with a depreciation rate of 55.4%. This means it fared slightly worse than the Jaguar XF (54.8%) and Cadillac XTS (54.5%). Rounding out the top ten are the Lincoln MKZ Hybrid (54.5%), Kia K900 ($26,522), BMW 5-Series (53.8%), Cadillac CTS (53.8%) and Audi A6 (53.3%).

Those depreciation rates are significantly worse than average and iSeeCars noted drivers could save an average of $32,375 by opting for a three-year old model instead of their new counterpart.

Customers looking to spend less than $20,000 have plenty of options besides the aforementioned Lincoln MKZ. Thanks to a high depreciation rate of 50.2%, a three year old Kia Cadenza can be bought for around $19,508. Other mainstream models with high depreciation include the Ford Fusion Hybrid (49.7%), Chevrolet Impala (49.4%) and Kia Optima Hybrid (49.2%).

Crossovers and SUVs are in high demand, but a handful lose nearly half their value after three years. These include the Lincoln Navigator L (51.6%), Infiniti QX80 (49.1%) and Lincoln MKT (49.0%). On the value side, the Volkswagen Tiguan has a depreciation rate of 47.7% and this means a three year old model costs an average of $16,235.

Trucks are also popular and they have an average depreciation rate of just 32.5%. However, the Nissan Titan XD loses 45.9% of its value after three years.

Also Read: Top 5 New Cars That Depreciate The Least After One Year

EVs and cars that originally stickered for $80,000 or more were given their own special categories. The EV side shows why as values plummet an average of 56.6% after three years.

The Fiat 500e has a depreciation rate of 69.7%, while the BMW i3 isn’t far behind at 63.3%. The popular Nissan Leaf also loses 59.6% of its value after three years.

On the high-end luxury side, the BMW 6-Series had a depreciation rate of 56.1%. It was followed by the Maserati Ghibli (55.8%) and Quattroporte (55.5%) as well as the Jaguar XJ (54.4%).

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  • Mr. EP9

    Count me as those who are not surprised.

  • Super Rob

    Some of these luxury cars become cost prohibitive to fix after 10 years. You have no choice but to junk them.

  • Mike anonymous

    If you want to make sure your vehicle will not depreciate, build a better product (not simply something that works great, but rather) something that is great.

    A Great EV is similar to a Great Cell-Phone, it could have great battery life and amazing specs, but the hardware is only built to last ever-so-long. A ‘Luxury vehicles’ (I am presuming things such as the 3-Series, E-Pace, & others) are like are (in a way) like premium cell phones, they are good when they come out, but every other year (or every few years) there is something that is new and better, something that receives more care from the brand… but we are not building phones of any kind, what we are building are cars. If you build a car, like a phone, it is likely to depreciate like a phone. But if you build a car, with your very best effort,.. those are the vehicles that last (in some cases a lifetime)…

    … My overall point,.. if you build a product to last a lifetime, and put your best effort into doing so, then it will last a lifetime, and that effort, time, and love will show. (If you don’t, then it’s likely it won’t).

  • TheBelltower

    Half-baked EVs lose their value. There is only one brand that immediately comes to mind when you think “EV.” And that name is conspicuously absent on all of these “Bargain” slides.

    • PhilMcGraw

      How much does Tesla pay you? Is it by the comment or word count?

      The reason I ask is because I have yet to read a comment of yours that isn’t about praising Tesla. Is there no other cars that interest you? I mean why even go on a car news site if you only like one brand? There’s plenty of Tesla dedicated sites. The folks over on Electrek love Tesla.

      • TheBelltower

        I comment on many topics besides those focused on Tesla. As recently as a year ago I was accused of being an Audi fanboy. I follow EV sites as well. One thing that’s clear… that the abundance of misleading anti-EV information won’t stop EV progress. The automotive industry is about advancing technology. Those who don’t appreciate this technology aren’t really car enthusiasts.

        Also, I would love to get paid by the comment.

        • PhilMcGraw

          There isn’t misleading EV information that I’ve read. There may have been articles on this site critical of Tesla, but not EVs as a technology or being the future of vehicles.

          Tesla is not going to be everyone’s cup of tea. But there are plenty of other brands out there pushing forward with EV tech that maybe people will like more. If all we do is constantly have these comments where it feels like a negative Tesla vs. Everyone Else, then you may do nothing more than turn more people off from the idea. Just a thought is all I’m saying.

          • TheBelltower

            In the US at the moment, Tesla accounts for around 80% of the EV market share. When titles such as “EV’s have some of the worst…,” it’s a notable omission that the quintessential EV isn’t mentioned anywhere within the article. FWIW, the i3 is on the list. Which I also own. So it isn’t as if I’m too heartbroken about the actual content of the article. The implication of the headline is misleading since the EV’s shown are mostly incredibly low volume niche vehicles.

          • PhilMcGraw

            Yes but while Tesla might make up 80% of actual sales, that doesn’t mean they’re the only manufacturer.

            The title also mentions luxury sedans, but there are some notable luxury sedans (such as those from Lexus) that aren’t on the list. And Lexus makes up almost the same market share as Mercedes and BMW. But since the majority of luxury sedan models do make up this list, they can put the title “luxury sedans”.

            The same goes for EVs. If there are 20 different EV models that have horrible resale value but 1 model that isn’t terrible, are you going to say there isn’t a problem with EV resale value?

            I think you’re attacking it from a different standpoint. You’re looking at which car has the most sales and looking at resale from that standpoint, but this article is only mentioning by model.

          • TheBelltower

            I can’t argue with any of that. Though as I’m looking at the cars on the list… all of the three year old EV’s on the list achieve a range of around 70 miles. The EVs that achieve a range of over 200 miles aren’t on the list. Most on the list don’t offer DC fast charging. So perhaps these vehicles don’t depreciate because they’re EVs, but rather because they were half-baked cars.

          • PhilMcGraw

            You are right that cars like the Chevrolet Bolt are not on there as well. I can understand that it comes across as EVs in general get bad resale value, but the problem is the majority of the models being sold do.

            And I will even go one step further to agree that they are half baked products that were made to fill a void in a lineup instead of being built from the ground up for EV people.

      • Dude

        Is he wrong? You can be a car enthusiast while making positive points about EVs. I love and own ICE cars and my favorite car is probably the LC500 but EVs are an important subject for me too. Plus there are a lot of article about EVs on this site

        • PhilMcGraw

          I have nothing against EVs. That wasn’t my point. I believe EVs are indeed the future. My point was NOT about EVs. Re-read my comment, it was about the support for Tesla.

          You can be critical of one-sided support for Tesla while still appreciating EVs.

          • Dude

            I read your comment lol but it doesn’t sense. You called an 8 year old account with fifteen thousand comments a shill for talking about Tesla too much? This community is too small for shills. s3xy is proof of that. Just google ‘ “TheBelltower” “disqus” ‘ if you’re that worried about one-sidedness.

            Also the misinformation he was talking about is in the comments, not the articles. Did you see the one about the cost to charge EVs? Massive dumpster fire.

          • PhilMcGraw

            I’m going off of his recent comments that I’ve read on a lot of articles on here. And considering this doesn’t involve you I am not sure why you’re even commenting. Him and I are actually having a very cordial discussion. It’s you that is having a problem here.

          • Dude

            Calling someone a shill like that is rude and nonsensical. I don’t see why you commented in the first place.

  • Honda NSX-R

    Last year I came across a ~700 miles 2017 Acura RLX and it was only around $32,000 USD. That’s a great deal compared to $49,000 USD for a brand new base model RLX

  • brn

    Luxury Sedans And EVs Have Some Of The Best Depreciation Rates…
    …if you’re a buyer.

    It’s all about perspective.

  • Dude

    I want to see what cars keep their value the best

    • Leconte Dave

      Toyota and Lexus

  • Salih Ahzem

    Reminds me of late Mr. Sergio Marchionne saying “buyers should not buy the 500e”. You know there is problem when the CEO says sth against their own car…

  • Akil Hodge

    Next in the news, fire is hot

  • It’s very different in Europe. Try to buy a used i3 and their prices are barely dropping. Interesting to see that it’s the opposite in the US.

  • Alduin

    All the more reason to buy used especially if it’s certified you get a better deal.

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