A new study predicts that the Maserati Quattroporte racer is expected to lose over $90,000 in value … [+]
New vehicle buyers are faced with a slew of numbers when doing their research, from horsepower and torque ratings to passenger and cargo volume measurements and fuel economy estimates. But the number one number that has the greatest impact on a driver’s financial results is the projected depreciation of a car or truck.
In a separate post we’ve presented a list of the new vehicles expected to retain their original values most tenaciously over time, led by the iconic Porsche 911 sports car, which is projected to lose just 9.3% of its original value after five years. That’s according to a study of depreciation rates among 1.1 million vehicles that changed hands in the past year, conducted by online car marketplace iSeeCars.com.
Choosing a model that is predicted to hold its original value longer than others is one of the most profitable ways to minimize your long-term cost of ownership. A given vehicle that depreciates at a slower rate than a comparable model will bring back more cash at trade-in time either in your pocket or to use as a down payment on a new model. It’s also a critical factor for those leasing rather than buying and financing a vehicle outright, as transaction costs are largely based on the difference between the initial transaction price and its value (its “residual value”) at the end of the term.
On the plus side, the report notes that new vehicles of all types hold their value better today than they did in the pre-pandemic era, when the average car would lose about half its value over five years. In 2023 it amounts to 38.8 percent on average.
While the study predicts that trucks, sports cars and small sedans and SUVs will perform best in this regard, all-electric vehicles will be the worst. Models in this category, including class-leading battery-powered ride-ons from Tesla, are expected to lose an average of 49.1% of their value after half a decade on the road. Expensive luxury sedans and SUVs are also expected to take a particularly heavy hit during resale, especially since there is more money at stake to lose.
Worst of the bunch in terms of accelerated depreciation is the otherwise sleek and stylish Maserati Quattroporte luxury sports sedan, which the site predicts will depreciate a whopping 64.5% of its resale value after 60 months. This translates to a staggering loss of $90,588 due to depreciation.
Below are the 15 current models that iSeeCars.com predicts will bring the lowest five-year rates of return, with the average loss in original value noted as both a percentage and dollars lost:
- Maserati Quattroporte: -64.5% ($90,588)
- BMW 7 Series: -61.8% ($72,444)
- Maserati Ghibli: -61.3% ($58,623)
- BMW 5 Series Hybrid: -58.8% ($37,975)
- Cadillac Escalade ESV: -58.5% ($63,885)
- BMW X5: -58.2% ($44,828)
- Infiniti QX80: -58.1% ($47,399)
- Maserati Levante: -57.8% ($55,858)
- Jaguar XF: -57.6% ($39,720)
- Audi A7: -57.2% ($48,917)
- Audi Q7: -56.8% ($41,731)
- Cadillac Escalade: -56.5% ($59,093)
- Audi A6: -56.3% ($38,252)
- Volvo S90: -55.8% ($35,365)
- Nissan Armada: -55.7% ($36,875)
Source: iSeeCars.com. You can find the full study, including section-wise results here.
