This Luxury Brand Has the Best Resale Value

In addition to comfort, performance, reliability, fuel economy, and overall design, resale value is one of the crucial considerations when buying a car. After all, you might want to sell it later to upgrade or if you need some quick cash. It’d be a shame if you only got a small amount of your money back, even with minimal wear and tear. Unfortunately, luxury cars typically don’t hold their value very well, meaning you’ll likely sell them for pennies on the dollar.  

However, the models from this automaker hold their value pretty well compared to other luxury car brands.

The luxury car brand with the best resale value

Tesla Model 3, which has some of the best resale value so you know everything about avoiding vehicle depreciation.
Tesla Model 3 | Qilai Shen via Getty Images

According to CarEdge, Tesla has the best resale value among luxury car brands like Audi, Infiniti, Lexus, Porsche, etc. In fact, you can get up to 68.72% of your money back after five years of ownership. It’s followed closely by Lexus at 66.53% and Acura at 65.74%.

In comparison, the non-luxury car brand with the highest resale value is Subaru, with most Subarus fetching you about 78.65% of the original car price. Toyota comes in second at 77.61%, while Honda is fourth at 77.17% after Volkswagen.

Given that Toyota and Honda hold so much of their initial value, the fact that their luxury divisions, i.e., Lexus for Toyota and Acura for Honda, give Tesla a run for its money shouldn’t be surprising.

Mercedes-Benz, Jaguar, and Land Rover are the three luxury brands at the opposite end of the spectrum. If you buy a Mercedes-Benz, it’ll hold roughly 55.25% of its original value by the time it’s five years old. Jaguar and Land Rover vehicle values drop to 53.31% and 53.08%, respectively.

As for the specific Tesla models and their resale values, they include the following:

Tesla Model 3

The Tesla Model 3 is the automaker’s luxury entry-level vehicle and holds up to 70.84% of its value after five years. The Model 3 is still in its first generation though there have been minor improvements over the six or so years it’s been in production.

For the seventh model year, you should expect between 272 and 315 miles of range, depending on the trim level. Furthermore, 258 hp and 307 lb-ft of torque are available from the powertrain. According to MotorTrend, these options can make a 0-60 mph acceleration run in 5.0 seconds.

There’s also the dual motor option producing 450 hp and 471 lb-ft of torque. Naturally, it accelerates faster and can reach 60 mph from a standstill in 3.1 seconds.

Tesla Model X

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The difference between the Model 3 and Model X’s value retention figures is 0.09%, with the latter holding on to 70.75% of its value. Powertrains available include a 670 hp and 1,020 hp option.

The range is an estimated 333 miles on a full battery for the 1,020 hp Tesla Model X Plaid. Also, according to Tesla, its 0-60 mph acceleration takes only 2.5 seconds, making it one of the quickest crossover SUVs available. The less powerful 670 hp model accelerates to 60 mph in 3.8 seconds with a 348-mile EPA estimated range.

The Model X has an even bigger touchscreen than the model 3 at 17 inches, although you still miss out on Apple CarPlay and Android Auto.

Tesla Model Y

As for the Tesla Model Y, it has one of the fastest depreciation rates of any Tesla vehicle, and you can likely only recover 61.39% of the initial cost. Perks include up to 330 miles of range and lots of interior space.

Also, there’s the dual motor AWD setup with 3.5 or 4.8-second 0-60 mph acceleration, depending on whether it’s a Performance or Long Range trim.