3 BMW Models Have Excruciating Resale Value
According to iSeeCars, the average five-year depreciation rate for all vehicles is 49.1%. In a recent study, this list of the 10 cars with the worst resale value was put together from the gathered data. While this data can help new car buyers make informed car buying decisions, it can also give used car buyers some insight in terms of finding good used car prices. Two BMW models top the list for the highest rate of depreciation and one more makes this list of the top 10.
BMW 7 Series
According to iSeeCars, the BMW 7 Series depreciates at an alarming rate. In five years, this prestigious model loses 72.6% of its original value. That’s up to $73,038 down from the new car pricing.
If you love the BMW 7 Series, it may prove wise to shop for used models. There are good deals out there on gently used models. In fact, due to the high rate of depreciation it’s probably best for buyers who want to save money to seek out a pre-owned 7 Series rather than going all-in on a brand new one.
BMW 5 Series
Taking the second place spot, there’s another BMW model. The BMW 5 Series is one of the most popular BMW models in the lineup. According to iSeeCars, it’s also one of the fastest depreciating models.
The BMW 5 Series depreciates at an excruciating rate of 70.1% over five years. That’s about $47,038 down form the original value. While this is a nice car, it’s another one that buyers may choose to buy used instead.
The Nissan Leaf is a good used car. But when you buy it new, it actually ties with the BMW 5 Series in terms of its depreciation rate. The Nissan Leaf depreciates at a rate of 70.1% over five years.
However, the total value of the loss is lower. Because the new car pricing for a Nissan Leaf is lower than for a brand new BMW model, it loses $23,470 of value in five years––still a nice chunk of change.
The Audi A6 loses $43,469 worth of value in the first five years off the lot. That means it depreciates at a rate of 69.0%. My dad has owned two Audi A6 sedans back to back (in fact, he still drives the second one he bought in 2012), and it’s easy to see why people love them.
However, with such a high depreciation it’s also easy to see why people may prefer to buy pre-owned models rather than brand new ones. The Audi A6 is No. 4 on the list of cars with the worst resale value.
Another tie, the Maserati Ghibli depreciates at a rate of 69.0%. That means a loss of about $61,289 from the original price. The Maserati Ghibli shares something in common with the other luxury models on this list.
It’s not difficult to imagine that if you have enough money to buy a brand new BMW 7 Series or Maserati Ghibli, you probably aren’t super concerned with the depreciation rate. That said, if you love the Maserati Ghibli but can’t afford a new one, they come $61,289 cheaper after spending five years off the new car lot.
It looks like three luxury models tied in fourth place for the vehicles with the worst resale value. The Mercedes-Benz E-Class also depreciates at a rate of 69.0% over the course of five years. It drops $48,457 off the original sticker price.
The Mercedes-Benz E-Class is another example of a car that, when bought new, is typically bought by a party that can afford the level of depreciation that this car brings to the table. However, it’s also a great model for used buyers that want affordable luxury.
Excluding the Nissan Leaf, every car on this list of 10 models with the worst resale value is a member of the luxury segment. The Volvo S60 keeps the luxury trend going with a five year depreciation rate of 67.8%. This model loses about $30,435 from the original value according to the iSeeCars study.
Consumers typically turn to the Volvo brand for its history of longevity, reliability, and safety. However, considering the high depreciation rate there are comparable models on the market that hold value better. That said, this may in turn be the ideal used car for some households.
The Mercedes-Benz S-Class is top tier luxury. So it’s no wonder that its high original sticker price loses value over time. In fact, the Mercedes-Benz S-Class loses the highest dollar amount from its starting value out of all the vehicles on this list.
This luxury model depreciates at a rate of 67.1% over five years. That amounts to a whopping $80,440 down from the original value. Used S-Class, anyone?
The Lincoln MKZ is discontinued after the 2020 model year. So if you want a brand new MKZ, you’re out of luck. However, buyers seeking a used Lincoln MKZ may benefit from its being one of the top 10 vehicles with the worst resale value.
The Lincoln MKZ has a depreciation rate of 67.1% over the course of five years. It ties with the Mercedes-Benz S-Class in terms of its rate of depreciation. However, the value drops by less than half ($30,715).
The third BMW model with a resale value among the top 10 worst, the BMW X3 rounds out the list. Depreciating at a rate of 66.5%, the BMW X3 is a subcompact luxury SUV with high depreciation.
Due to its high depreciation rate over five years, the BMW X3 loses $35,682 of its value after five years off the lot. While it is a compelling vehicle in its class, buyers may turn to other models that project a better resale value. Or, a savvy used luxury SUV buyer can find one at a considerably lower price than getting one new.