Luxury cars can be expensive to buy but fun to drive and fulfilling to own. Some owners may regret buying their luxury car and consider selling it to make a quick buck when times are tough. For those reasons, buying a car with a good resale value can be a good idea, so here’s a look at five luxury brands with the best resale value.
Why resale value can be important
Cars are an asset, just like a home. But unlike a house, cars will almost always lose value over time, which is called depreciation. This is not a topic most drivers think about, as depreciation happens over the years and is not very apparent until you’re ready to sell or trade your car.
However, it matters for several reasons. A practical reason is if an owner regrets their recent purchase, they can sell their car. In that case, a car with a high resale value is good, as it’ll help owners cut their losses.
Similarly, suppose owners want to sell their luxury car for other reasons. In that case, a higher resale value is good because it means more money for a new car—another reason why depreciation matters are that the car is worth what the owners paid. If a luxury car is worth $100,000 on the lot, but the moment it’s driven off the lot, its value plummets to $50,000, then it was likely overpriced.
Some brands tend to have cars with good resale value, while others don’t. So here’s a look at five luxury automakers with the best resale value after seven years.
According to CarEdge, Audi is fifth in luxury automakers with the best resale value after seven years. Its cars, after seven years, are worth about 47.11% of their purchase price. That being said, some Audis hold their value better than others do. For example, the S4, the S6, and the TTS will have a higher resale value than the A4, the A6, or the A8.
Another German luxury automaker, Porsche, is on the list, as after seven years, its cars have a resale value of about 50.13% of their original price. Like with Audi, though, there will be some variation based on the exact model in question. In particular, the Porsche 911 has a great resale value.
EVs will depreciate faster than regular cars, but this isn’t the case for Tesla. As a result, Teslas can sell for 52.19% of their original value even after seven years of ownership. As CarEdge wrote, the site only has data for the Model S and Model X so far, but it seems like the newer Teslas will also have a good resale value.
After seven years of ownership, an Acura can sell for 53.94% of its original price. This shouldn’t be surprising as Acura is the luxury arm of Honda, and Honda is well-known for making reliable cars that don’t depreciate much. That said, it’s worth noting that brand-new Acuras may not have as good of a resale as the older ones.
The luxury automaker with the highest resale value after seven years is, unsurprisingly, Lexus. Like Acura, Lexus is the luxury arm of Toyota, a Japanese automaker well-known for making reliable vehicles that hold their value. After seven years of ownership, the average Lexus will have a resale value of 54.22% of its original price. Additionally, this excellent resale value is true for many of the cars in Lexus’ lineup, including brand-new ones.