Skip These Luxury SUVs With Unreasonably High Depreciation Rates
When you think about it, luxury SUVs depreciate more because the cost is higher to start with. High gas prices in the last few years didn’t help the situation, but these large luxury SUVs with unreasonably high depreciation rates might be worth skipping. If your dream sport utility vehicle from Infiniti, Cadillac, or Lincoln is on this list, see what their rates are.
Infiniti’s QX80 made the list of SUVs with unreasonably high depreciation rates
When iSeeCars looked at millions of three and five-year-old cars sold in 2022, the average vehicle lost 33.3% of its value over five years. That was down 17% compared to 2021. Karl Brauer, Executive Analyst for iSeeCars, said, “The relative scarcity of late-model used cars due to pandemic-related new car production disruptions has kept used car values high for more than a year.”
The Infiniti QX80 saw an astonishing 52.6% depreciation, up around $44,265 from the MSRP. iSeeCars suggests that the push for fuel-efficient smaller vehicles has driven the demand for large luxury SUVs down. Not all shoppers are interested in large luxury SUVs either, as these usually come with higher associated maintenance and insurance costs.
The Cadillac Escalade ESV is another SUV with unreasonably high depreciation rates
Another large luxury SUV with high depreciation rates, the Cadillac Escalade ESV, landed in the top 10. iSeeCars found that the Escalade ESV depreciated 52.4% over five years, one of the highest in the study. That works out to an average of $55,128 from MSRP. Cadillac has a long history of popularity with the Escalade, but it could use some work on the value situation.
At the national average of 33.3%, the average difference from MSRP is $14,049. That means the Cadillac Escalade ESV is losing a lot of value in the first few years. The average new Cadillac Escalade ESV costs $101,526 but ranges from $84,546 to $117,546. One reason is that shoppers don’t value the premium features as much, resulting in lower resale values.
Watch out for depreciation with the Lincoln Navigator
Even though the Lincoln Navigator has a long history on the market, it made the list of luxury SUVs with unreasonably high depreciation rates. This study found that the Navigator saw a 51.9% depreciation rate over the first five years. Since the large Lincoln has a higher cost to start, that works out to about $41,426 from the MSRP.
The good news is that the Lincoln Navigator is the most reliable luxury SUV with three rows, and has a reliability score of 9.8. On top of that, 11.3% of all Navigator SUVs on the road have 150,000 miles or more on the odometer. That compares to 2.2% for the three-row SUV segment.
There were not that many luxury SUVs that made the list of vehicles with the least depreciation over five years, but the Jeep Wrangler and Wrangler Unlimited were two options that depreciated only 7.3% over five years. It might not have all the luxury of the QX80, Escalade ESV, or Navigator, but it can go off-road.