When it comes to luxury cars, resale value is an important factor to consider. After all, no one wants to invest in a car that will depreciate quickly. Fortunately, there are some luxury cars that have excellent resale value. According to Kelley Blue Book's Best Resale Value Awards, the following luxury cars have the best ratings for resale values: Audi (45.7% of value withheld after five years), Land Rover (46.9%), Volvo (47.2%), and Mercedes-Benz (47.2%).The Lexus LS is a great example of a luxury car with low depreciation.
With Toyota's reputation for reliability, it's no surprise that the Lexus LS has one of the lowest depreciation rates among luxury cars. After five years, only 53.2% of its value is withheld. On the other hand, some luxury cars depreciate faster than others. The BMW i3, for example, loses approximately 68% of its original value in the first five years of ownership. Similarly, the Mercedes-Benz GLE500 plummets by approximately 65% in the first five years. The Audi TT is an exception to this trend.
Despite being a luxury car, it has some staying power and retains more of its value than other luxury cars. The enormous cost of repairing and maintaining luxury cars is primarily responsible for high depreciation rates. This prevents many car buyers from committing to buying new luxury cars; depreciation reduces the resale value of vehicles as soon as they leave. The Mercedes-Benz CLS class is another example of a luxury car with high depreciation rates. Despite its generous footprint, this luxury car seats only four passengers and due to its elegant roof line, the back row can be very tight for taller adults. When shopping for a luxury car, it's important to consider resale value. While the average new luxury car loses 40-50% of its original value in the first five years of ownership, some models tend to lose much more.
Knowing which cars will be worth the most when it comes time to sell can help you get the most out of your money.
