23 Luxury Cars That Depreciate the Fastest

You’ve probably heard industry experts say a brand-new car will lose value as soon as you drive out of the showroom yard. And after 12 months, it’ll have lost about 40 percent of its retail value. Well, that might not be true for all cars — but it’s a reality in the luxury car segment.

No one wants to get burned buying a brand-new car. We all want to get a good deal — it’s human nature. However, in the luxury car segment, there’s a high chance your brand-new car will depreciate faster than farm-fresh produce.

If you are in the market for a luxury car, you’ll need to get one that’s reliable, fancy, comfortable, and, best of all, holds some value. Fortunately, we’ve compiled a list of luxury vehicles that depreciate the fastest so you can stay clear. We’ve taken note of current studies and insights from industry experts to help you make a well-informed decision looking for your next car.

Maserati Quattroporte

Like most luxury cars manufactured in its region, the Maserati Quattroporte suffers from the European car curse. It has a high initial purchase price, is expensive to maintain, and has a bad reputation for reliability.

The Maserati Quattroporte has a 64.5% depreciation in the first five years of ownership. This means there’s a high chance someone will offer you less than half the cost you spent buying it new. But on the flip side, you’ll love its pretty looks (it’s a head-turner for sure) and deep rumble behind the wheel.

BMW 7-Series

The 2025 BMW 7-Series has much to offer for a retail price of over $100,000. Once you get behind the wheel, you’ll love the plush interior, abundance of tech features, and effortless performance.

You also get a variety of trim levels to choose from, including a plug-in hybrid. Those looking for brutal performance will be comfortable with the 536-hp 4.4-liter twin-turbo V8.

That said, the BMW 7-Series has a high depreciation rate, all things considered. Still, you’ll enjoy every penny you parted with for this big luxury sedan.

Lexus LS

Lexus LS is quite a reliable car, thanks to its Toyota underpinnings. It’s a luxury car, after all, and things like a comfortable interior and tech features come naturally. You’ll love its well-mannered twin-turbo V6 or efficient hybrid variant. Unfortunately, the LS is a thumbs down for V8 aficionados, with no V8 on the options list.

Even though the Lexus LS is manufactured by Toyota’s luxury arm, Lexus, it still suffers from high depreciation, especially on the used-car market, due to its high retail value (the 2024 Lexus LS has a starting price of $80,000).

Maserati Ghibli

The 2024 Maserati Ghibli is the perfect car if you are looking for a muscular, exotic luxury car. It’ll be an outlier in your neighborhood or office parking lot, thanks to its exotic exterior design that’ll compel anyone passing by to look twice.

It’s also quite athletic, given the only options are a 424-hp twin-turbo V6 or a 572-hp twin-turbo V8. The interior is roomy and luxurious, and it is worth the six-figure price tag.

Unfortunately, all the good things about the Maserati Ghibli end there. It has a five-year depreciation rate of 61.3%, and the likelihood you’ll take a beating on the used car market is 9 out of 10.

Cadillac CT6

Let’s be honest here, folks. The Cadillac CT6 looks amazing. The designers did a splendid job on the beautiful exterior, and it is also quite engaging behind the wheel thanks to various engine options, including the ferocious 550-hp Blackwing 4.2-liter V8.

Like most American luxury vehicles, the Cadillac CT6 suffers from poor brand perception, which worsens its depreciation even though it is quite affordable compared to its competitors across the pond. That’s not all. The CT6 also takes a beating from more popular competition in its segment.

BMW 5-Series Hybrid

Let’s face it. The new-age BMW 5-Series Hybrid can’t be compared to its predecessors (early 5-series models). Still, it makes up for that with an elegant exterior and impressive interior design.

You’ll love the comfort behind the wheel, and while the in-cabin tech has a learning curve, you’ll appreciate the German car manufacturer’s efforts once you ease into it.

With a starting price of $73,000, the BMW 5-Series Hybrid loses about 58.8% of its retail price after five years, which is more than $35,000. That’s a massive dip for the BMW mid-sizer with the best fuel efficiency in the lineup.

Land Rover Range Rover

Often referred to as the Mobb Boss car in the UK, the Land Rover Range Rover is a globally renowned top-line luxury SUV. It looks like money, smells like success, and drives like a dream.

It’ll sit pretty at the country club and take a wild tour across the outback without breaking a sweat.

The only sad part about the Land Rover Range Rover is it’s a lowballer’s favorite. You’ll have better luck selling a fake Gucci bag at a Pawnshop than getting half the money you spent on brand new. Let’s not forget the reliability issues and high maintenance costs.

Cadillac Escalade ESV

General Motors deserves a lot of props for all the work they’ve put in on the Cadillac Escalade ESV over the years. With a little over $100,000, you get a dominant force in the luxury SUV segment with an extra-roomy interior (long-wheelbase) and abundant tech.

It’ll stick out during executive meetings and ramage through the countryside with a mobile home in tow. On the other hand, the Cadillac Escalade ESV is quite thirsty and has known reliability issues. Worse, it has a five-year depreciation rate of 58.5%.

BMW X5

The BMW X5 is a popular luxury SUV by the Bavarian automaker. In the first quarter of 2024, BMW of North America sold 84,475 units, a 2.4% increase from the same period in the previous year.

Still, that hasn’t saved this powerhouse European luxury SUV from accelerated depreciation. In a span of five years, the BMW X5 loses about 58.2% of its retail value. If you have to go in for the X5 — the used car market would be a smarter move.

Infiniti QX80

You’ll love the Infiniti QX80 when you see it — it makes a great first impression. It gets better on the interior with its top-of-the-range premium bits and trims. Under the hood, you get a 400-hp 5.6-liter V8 capable of doing 0-60 mph in 5.9 seconds (2024 model).

Behind all its A+ capabilities, the Infiniti QX80 doesn’t perform well when it comes to holding value. After five years, it loses about 58% of its original value, making it a bad bet for buyers looking to own it in the shorter term.

Maserati Levante

If there’s one take-home you get reading this list, it’s to check your priorities before signing up for anything with a Maserati tag. No offense to the Italian luxury car brand, but like the Quattroporte or Ghibli, the Levante depreciates quickly. To be specific — about 57.8% after five years.

It’s more practical and useful than its sedan siblings — and even much better in depreciation — but you’ll lose more than half of what you paid for on the used-car market when it’s finally time to get a new car in the aforementioned time slot.

Jaguar XF

There’s a lot of value to get from the Jaguar XF. It’s cheaper than most of its competition, it has a fascinating exotic exterior (even though the European manufacturer needs to lose its dated looks), and the ride experience is to die for.

Unfortunatley, like most European luxury cars on this list, the Jaguar XF doesn’t hold much of its value once sold. It shades off 57% of its original price tag after five years, making it a risky option for potential buyers looking for exotic luxury sedans.

Alfa Romeo Giulia

We’ll have to thank the Italian automaker for the Alfa Romeo Giulia’s showstopping design and agility on the road. The designers might have been a little conservative, making the interior plush compared to its German competition.

Still, it is safe to say this European luxury sedan is well-equipped across the board. Unfortunatley, the Alfa Romeo Giulia depreciates quite fast thanks to stiff competition in its segment. There are also concerns about its long-term reliability among potential buyers.

Audi Q7

Buying an estate or station wagon in this era isn’t practical. SUVs have taken over since they are roomier and more utilitarian. For that reason, most family guys with a taste for performance and luxury would rather have the Audi Q7 over the RS6 Avant, and we get it.

It has better cabin trimming, many tech features, and an amazing cornering attitude. However, it has problems holding value.

The average depreciation rate over five years is 56.8 %. It gets worse in the used car market because of reliability issues. The air suspension and four-wheel steering can be overbearing to maintain.

Cadillac Escalade

The Cadillac Escalade just breathes power. This is not because of Hollywood’s portrayal as a secret service car but because of its imposing figure. Pull up with a Cadillac Escalade and fancy suits, and you are guaranteed to make an impression.

Unfortunately, like its long-wheelbase sibling, the standard Cadillac Escalade suffers from steep depreciation. According to industry data, it loses over half its value (56.5%) in five years, which is close to $59,000 off the manufacturer’s recommended retail price.

Porsche Cayenne

Porsche fans will agree that most vehicles from the German manufacturer appreciate with age. Classic Porsches in mint condition sell for a fortune on collector markets. But so far, the Porsche Cayenne’s value is heading in the other direction.

The fact remains that luxury vehicles like the Porsche Cayenne often face accelerated depreciation due to a number of factors, including high initial cost, expensive maintenance, and shaky reliability. It gets worse with the higher-performance trims.

Volvo S90

Volvo is renowned globally for manufacturing the safest cars. Given that, you’d think more car buyers would treasure them, sustaining their value. Wrong! While the Volvo S90 is a fantastic luxury car, it’s also quite complex, which often screams high maintenance.

The Volvo S90 loses about 55.5% of its value over five years, which is a lot (more than half the MRSP). It’s such a pity a strikingly good-looking luxury car with awesome tech and driving experience loses so much value in such a short time.

Nissan Armada

If you are in the market for a lower-end luxury three-row SUV, the Nissan Armada might be recommended. It offers a seamless ride experience, great towing capability, and a choice of luxury trims.

However, it seems the Nissan Armada shares much more than just architectural features with the Infiniti QX80. Like its cousin, it also loses much value over a short period. That’s not all. It’s a notorious gas hog with a not-so-good steering response — all of which affect its ability to hold market value.

Mercedes-Benz S-Class

Nothing says “I’ve made it” better than a Mercedes-Benz S-Class. The German automaker has made a name for itself in the auto industry by showcasing class. For instance, the 2024 S-Class exudes elegance in every aspect of its build (design, drive experience, and price tag). You also get a PHEV variant with an electric-only mode.

Unfortunatley, the only thing the Mercedes-Benz S-Class can’t do is finesse the market to retain its value. While it can’t be compared to German competitors like BMW, losing more than half its value (55.7 %) over five years is worrisome.

Lincoln Navigator L

Don’t get fooled by the Lincoln Navigator L’s overbearing figure — it is surprisingly quick on its heels. The 2024 model only has one engine option: a 440-hp twin-turbo V6 that can bolt from 0 to 60 mph in 5.3 seconds.

As impressive as that sounds, the Lincoln Navigator L also suffers from the curse of the European luxury car — it depreciates in value as quickly as it is off the mark. The long-wheel version loses 55.5% in five years.

Mercedes-Benz GLS

If you make a decent living and can be classified as well-to-do and are looking for the perfect family luxury SUV, the Mercedes-Benz GLS makes an elegant choice. You’ll love the luxurious interior, tech features, and ride quality.

Unfortunately, the Mercedes-Benz GLS has its own downfalls. Not everyone will appreciate its dated, boxy shape. It’s also a fuel guzzler, and worse of all, it loses 55.5% of its value in the first five years.

You wouldn’t want this luxury SUV used, and maintenance costs (air suspension repairs and complex tech) can cost an arm and a leg.

Tesla Model S

It’s no surprise that the Tesla Model S is on this list. After all, electric vehicles are still considered new-ish in the auto industry even though the first Tesla rolled out in 2008. Still, electric vehicle technology is evolving so fast that even the newest model on the market could become obsolete in a short period.

Even though the Tesla Model S gets many updates underneath, its notable design is getting old for most car buyers. Add that to an increasingly competitive EV market, and the Model S’s value doesn’t hold much five years from now.

BMW 5-Series

It’s difficult to hate the BMW 5-Series’s contemporary design. Open the door, and you’ll love the modern, stylish interior. But it’s what you feel behind the wheel (turbo-four) that gets people signing up for a downpayment. The 5-Series Bimmer is a fine car.

Like the Hybrid version on this list, the BMW 5-Series loses much of its value after five years — 55.3% to be accurate. That’s not all. Like most Bimmers, the maintenance costs are as high as the retail price. We’ll advise you to stay away from the used units unless you are prepared for expensive repairs.