Which Car Brands Have the Highest Depreciation?

When purchasing a car, many buyers focus on factors like performance, fuel efficiency, and luxury features. However, one critical aspect that often gets overlooked is depreciation—the rate at which a vehicle loses its value over time. Some cars retain their worth remarkably well, while others plummet in value within just a few years. Understanding which brands and models depreciate the fastest can help buyers make smarter financial decisions, whether they plan to resell or trade in their vehicle in the future.

In this comprehensive guide, we’ll explore:

• What causes car depreciation?
• Which car brands lose value the fastest?
• Which brands hold their value best?
• Tips for minimizing depreciation losses

By the end, you’ll have a clear understanding of how to choose a vehicle that won’t leave you with a financial loss down the road.

What Causes Car Depreciation?

Depreciation is the natural decline in a car’s value due to factors such as:

1. Age & Mileage – The older a car gets and the more miles it accumulates, the less it’s worth.
2. Brand Reputation – Some brands are known for reliability, while others struggle with poor resale value.
3. Market Demand – Popular models (like Toyota trucks or Subaru SUVs) hold value better than niche vehicles.
4. New Model Releases – When a redesigned version hits the market, older models lose value faster.
5. Maintenance & Reliability – Cars with high repair costs (e.g., luxury European brands) depreciate more.
6. Economic Factors – Fuel prices, interest rates, and even global events (like chip shortages) impact depreciation.

Now, let’s dive into the brands that lose value the fastest.

Car Brands with the Highest Depreciation

1. Maserati

Average Depreciation: ~65% after 5 years
Maserati is synonymous with luxury and performance, but its resale value is among the worst in the industry. High maintenance costs, expensive repairs, and limited demand in the used market contribute to rapid depreciation.

2. BMW

Average Depreciation: ~60% after 5 years
While BMWs are desirable when new, their steep maintenance costs and complex engineering lead to a sharp drop in value. The 7 Series and i8 are among the fastest-depreciating models.

3. Mercedes-Benz

Average Depreciation: ~55-60% after 5 years
Mercedes-Benz vehicles, especially high-end sedans like the S-Class, lose value quickly due to costly repairs and newer models constantly entering the market.

4. Land Rover

Average Depreciation: ~55% after 5 years
Despite their rugged appeal, Land Rovers suffer from reliability issues and expensive parts, making them depreciate faster than most SUVs.

5. Jaguar

Average Depreciation: ~55% after 5 years
Jaguars are stylish but plagued by reliability concerns, leading to poor resale value. The XF and F-Pace are among the worst offenders.

6. Audi

Average Depreciation: ~50-55% after 5 years
Audi’s luxury sedans and SUVs depreciate quickly due to high ownership costs and strong competition from Lexus and Tesla.

7. Volvo

Average Depreciation: ~50% after 5 years
While Volvo has improved reliability, its luxury models still lose value faster than mainstream brands.

8. Cadillac

Average Depreciation: ~50% after 5 years
Cadillac struggles with brand perception, as many buyers prefer German or Japanese luxury brands, leading to weak resale values.

9. Chrysler

Average Depreciation: ~50% after 5 years
Chrysler’s minivans and sedans (like the 300) depreciate quickly due to competition from more reliable brands like Toyota and Honda.

10. Lincoln

Average Depreciation: ~45-50% after 5 years
Lincoln’s luxury SUVs and sedans don’t hold value as well as competitors like Lexus, partly due to lower demand in the used market.

Which Car Brands Hold Their Value Best?

For comparison, here are brands with the lowest depreciation:

• Toyota (~15-20% depreciation after 5 years)
• Subaru (~20-25% depreciation after 5 years)
• Honda (~20-25% depreciation after 5 years)
• Porsche (~25-30% depreciation after 5 years)
• Jeep Wrangler (~30% depreciation after 5 years)

These brands benefit from strong reliability, high demand, and loyal customer bases.

How to Minimize Car Depreciation

If you want to protect your investment, consider these strategies:

1. Choose a High-Resale Model – Research brands like Toyota, Subaru, and Porsche.
2. Buy Used (1-3 Years Old) – Let the first owner take the biggest depreciation hit.
3. Keep Mileage Low – High-mileage cars lose value faster.
4. Maintain Service Records – A well-documented history boosts resale value.
5. Avoid Custom Modifications – Non-factory upgrades rarely add value.
6. Sell Before Major Depreciation Hits – Typically around the 3-5 year mark.

Final Thoughts

While luxury brands like Maserati and BMW offer prestige, they come with steep depreciation costs. On the other hand, brands like Toyota and Subaru provide long-term value retention. If you plan to sell or trade in your car within a few years, choosing a model with strong resale value can save you thousands.

Before buying, always check depreciation rates on sites like Kelley Blue Book (KBB) or Edmunds to make an informed decision.

Would you prioritize luxury knowing it depreciates faster, or would you opt for a high-retention brand? Let us know in the comments! 🚗💨