Avoid At All Costs
Purchasing a new vehicle can be a thrilling experience, but there are cars out there that depreciate so rapidly that they can quickly turn into money pits. From high-end luxury sedans to flashy sports utility vehicles, some cars fall in value at an alarming rate. With that in mind, here are 20 cars to watch out for.
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1. Volvo S90
The Volvo S90 suffers a mean depreciation of 51.4% over a five-year period. While it's certainly a fantastic car to drive with Scandinavian luxury and handsome styling, its high depreciation is too much for a new purchase to make financial sense. Buying a used S90 is a great way to save some money and get behind the wheel of the S90 without taking the biggest hit.
2. Nissan Leaf
The 2022 Nissan Leaf has depreciated by over 46% and is among the worst cars to buy new if you care about resale. It's inexpensive, but it has an uncompetitive, sub-average electric range and is long outclassed by newer, better EVs. It's still cheap for an EV, which may make it a reasonable option for first-time buyers, but anyone buying new is losing way more value than when buying competitors.
3. Cadillac Escalade ESV
The Cadillac Escalade ESV is another vehicle that has excessive depreciation, with almost 63% being lost over 5 years. It is one of the worst new car purchases. The base model Escalade is a bit better but not by much, with 61% depreciation.
4. Audi A6
The Audi A6 has an average value loss of 51.5% over five years. While the A6's style and tech are desirable, new purchases depreciate too quickly to make sense financially. Consider buying a used one instead to save on luxury and performance.
5. Ford Mustang Mach-E
The 2022 Ford Mustang Mach-E lost over 46% of its value in a year. It's a terrible option for those concerned with depreciation. The Mustang purist backlash tarnished the name, despite its being a good-looking and engaging driver.
6. Tesla Model X
Depreciation is a real threat for the Tesla Model X. After just 5 years of ownership, the typical Model X loses more than 63% of its value. This depreciation equates to an average loss of close to $54,000 over that period.
7. BMW 5 Series Hybrid
The BMW 5 Series Hybrid is the least valuable in its class after five years, losing almost 65% of its value, or $47,457. To add insult to injury, other 5 Series models are also depreciating quickly and make an appearance on the list of fastest depreciating cars. If you're interested in driving a 5 Series though, used 5 Series cars can be a great bargain, if you're not against buying used.
8. Lincoln Navigator
The Lincoln Navigator depreciates by an average of 51.9% over five years. Although it has a spacious, luxurious cabin and great performance, its high depreciation rate makes it an expensive purchase new. Opting for a used Navigator can offer the comfort and features of this large SUV at a fraction of the price.
9. Jaguar I-Pace
The 2022 Jaguar I-Pace is not a good purchase for value retention, as it depreciates too quickly for anyone to be able to get a good resale value on the used market. The Jaguar brand is also notorious for bad retention on its vehicles, and even in the luxury car market it has a reputation of not doing well for depreciation.
10. Maserati Ghibli
It's no surprise to find the Maserati Ghibli at the bottom of this list. It has one of the worst resale values in the world with an average depreciation of 64.7% over five years. For an exotic car, that is a shocking $70,874 written off for an average used car buyer.
11. Mercedes-Benz S-Class
The Mercedes-Benz S-Class loses an average of 51.9% of its value after five years. Even with world-class luxury, tech, and name, steep maintenance fees and a punishing new-car depreciation rate make this car a risky choice. Buying it used lets you enjoy this flagship sedan's perks without taking such a beating.
12. BMW iX
The BMW iX is an entirely different story, as it already experienced brutal depreciation. The 2022 model is already down more than 47% and has a history of outrageous depreciation rates, making the iX a bad investment for those who want to retain value over the long run. Its questionable design didn't help either, which polarizes many with its unapologetically controversial design.
13. Infiniti QX80
It’s hard to believe such a high-value product would depreciate like this, but the large and luxurious Infiniti QX80 loses a staggering 65% of its value. Only purchase a new one if you don’t mind such a huge depreciation hit.
14. Audi e-tron GT
The 2022 Audi e-tron GT's huge depreciation of over 48% makes it a risky buy if resale is a concern. Stylish and a blast to drive, this Audi is hamstrung by an exceptionally high price, lack of practicality, and crushing depreciation. Owners who buy new are taking a large financial hit, and there are more practical EVs that are just as fun to drive.
15. Ford Expedition
The Ford Expedition experiences a 5-year depreciation of 50.7% on average. It's roomy and capable but the high depreciation for a full-size SUV makes a new one a bad financial decision. Buying a used one instead nets most of the same qualities for less value lost upfront.
16. Tesla Model S
The Tesla Model S loses a very average 65.2% of its value over five years. It was impressive technology for 2012, but that was 13 years ago. The Model S has had no significant redesign since then and today faces a lot of competition from more reliable cars.
17. Maserati Levante
With a surprising 48.2% depreciation rate, the 2022 Maserati Levante is a nightmare for any buyers who care about resale value. The design of the Levante is sleek, but it just lacks that extra touch of exotic charm that Maserati is known for. The interior of the Levante does nothing to make up for its crazy depreciation or astronomical pricing.
18. BMW 7 Series
The BMW 7 Series suffers the greatest hit in depreciation, with an average loss of 67% of value over five years. Complex technology and expensive repairs on the 7 Series, like other large German luxury sedans, make a new one a risky investment. A used 7 Series can be a good deal if you’re in the market.
19. Jaguar XF
It is to be expected that a car like the Jaguar XF will drop in value. However, the amount it loses is far from small and results in a depreciation rate of an average 54% over five years. Although it does come with nice British styling and a very attractive interior, the purchase of a Jaguar XF as a new car is a bad investment.
20. Mercedes-Benz EQS Sedan
The Mercedes-Benz EQS Sedan 2022 suffered a shocking 50% loss in value. This is an astonishing depreciation that should deter any prospective buyer worried about resale. Luxury design, an opulent cabin, and strong performance are all marred by a high price tag and cumbersome touchscreen menus.
