Understanding Car Depreciation: The Models That Lose Value Fastest
For most new car buyers, depreciation is an unavoidable reality. The moment a new vehicle is driven off the dealership lot, it begins to lose value, and this decline continues over the following years. According to Kelley Blue Book (KBB), the average new car will retain only about 42.4% of its original value after five years. However, some models experience significantly steeper depreciation, making it crucial for buyers to consider value retention before making a purchase.
The Importance of Value Retention
Understanding a car’s depreciation is essential for buyers who want to avoid financial regret. Purchasing a vehicle that loses value rapidly can lead to substantial losses when it comes time to resell or trade in. While some cars are designed for luxury and performance, their high depreciation rates can make them less appealing as long-term investments. Below, we explore several models that are known for their poor resale value, according to KBB data.
BMW 7 Series – 32.7% Retention
The BMW 7 Series is a flagship executive sedan that offers a wealth of luxury features and impressive performance. However, it is projected to retain only 32.7% of its original value after five years. Despite its low resale value, the 7 Series remains popular among buyers who prioritize comfort and technology, such as its 31-inch Theater Screen and executive lounge seating. For those who plan to be driven rather than drive themselves, depreciation may be a secondary concern.
Land Rover Range Rover – 34.3% Retention
Originally launched as a luxury alternative to Land Rover’s rugged models, the Range Rover has evolved into a symbol of opulence. Unfortunately, it also suffers from rapid depreciation, with KBB estimating a value retention of just 34.3% after five years. Despite its luxurious interior and off-road capabilities, the Range Rover’s reliability issues can overshadow its appeal. Buyers should be prepared for the financial implications of owning such a prestigious vehicle.
Jeep Grand Wagoneer – 36.6% Retention
The Jeep Grand Wagoneer, while less expensive than some luxury SUVs, also faces significant depreciation, retaining only 36.6% of its value after five years. This model offers a tech-rich cabin and a luxurious experience, but its resale value may leave buyers feeling disappointed when it’s time to sell. The Grand Wagoneer is designed for those who appreciate luxury but should be aware of its financial drawbacks.
Cadillac XT6 – 36.3% Retention
The Cadillac XT6 is a three-row SUV that has struggled to make a lasting impression in a competitive market. With a projected value retention of 36.3% after five years, it falls short of expectations. While it offers a spacious interior and a comfortable ride, its lack of standout features may contribute to its poor resale value. Buyers may find themselves regretting their decision if they prioritize long-term value.
Alfa Romeo Stelvio – 32.6% Retention
Alfa Romeo’s Stelvio SUV is known for its striking design and spirited performance, but it also suffers from rapid depreciation, retaining only 32.6% of its value after five years. Despite its unique appeal, the Stelvio has seen declining sales, which may be linked to its poor resale value. As Alfa Romeo prepares to introduce a new generation, it remains to be seen if future models will perform better in this regard.
Mercedes-Benz S-Class – 35.3% Retention
The Mercedes-Benz S-Class has long been regarded as a benchmark in luxury sedans, yet it faces a significant depreciation challenge, retaining just 35.3% of its value after five years. Buyers of this prestigious vehicle are often less concerned about resale value, focusing instead on the advanced technology and unparalleled comfort it offers. However, the financial implications of such a purchase should not be overlooked.
Buick Enclave – 35.1% Retention
The Buick Enclave has undergone a refresh for 2025, but its previous generation still shows a disappointing value retention of 35.1% after five years. While it competes in a popular segment, the Enclave’s lack of distinctive features and underwhelming performance may contribute to its poor resale value. Buyers should consider whether the Enclave’s offerings justify its depreciation.
Land Rover Range Rover Evoque – 34.3% Retention
The Range Rover Evoque, despite being the entry-level model in the Range Rover lineup, shares the same depreciation woes as its flagship counterpart, retaining just 34.3% of its value after five years. While it appeals to buyers seeking luxury in a compact form, its performance and interior quality may not match its price tag, leading to disappointing resale values.
BMW 8 Series – 33.7% Retention
The BMW 8 Series, marketed as a driver-oriented luxury coupe, also faces significant depreciation, with a projected retention of only 33.7% after five years. This model is designed for those who prioritize performance and luxury, but potential buyers should be aware of the financial implications of such a purchase.
Audi A8 – 32.3% Retention
Finally, the Audi A8, a competitor to the S-Class and 7 Series, also struggles with depreciation, retaining just 32.3% of its value after five years. Despite its luxurious features and recent updates, the A8’s resale value may be impacted by its conservative styling and the perception that it lacks the prestige of its rivals.
Conclusion
When purchasing a new vehicle, understanding depreciation is crucial for making an informed decision. The models highlighted above are known for their poor resale values, which can lead to financial regret for buyers. While luxury and performance may be enticing, potential owners should weigh these factors against the long-term financial implications of their purchase. By doing so, they can make choices that align with both their desires and their budgets.
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