When it comes to luxury cars, depreciation is an important factor to consider. Luxury cars tend to lose a significant amount of their value in the first five years of ownership, with some models depreciating more than others. The luxury car limitation is an annual limit on the amount of depreciation that can be applied to a luxury car used for commercial purposes. This amount is indexed each year for inflation and is designed to control the type and amount of money companies spend on luxury cars for tax purposes.
CarEdge calculations show that the BMW i3 will have a residual value of 19.38% after 10 years of ownership, while the Mercedes-Benz GLE500 mid-size luxury SUV ranks second for the most depreciating luxury car after five years of ownership, with a depreciation rate of 65%. The Land Rover Range Rover also has a significant drop in value after five years of ownership, with an average depreciation rate of 68%. The cost of repairing and maintaining luxury cars is one of the main reasons for their high depreciation rates. To help you make an informed decision when buying a luxury car, we've compiled a list of 10 luxury cars with the steepest depreciation curves over the first five years of ownership.
From the BMW i3 to the Mercedes-Benz GLE500 and Land Rover Range Rover, these models tend to lose much more than their counterparts in terms of value. So if you're looking to buy a luxury car, it's important to keep in mind that you may not make as much money as you expected if you decide to sell it.