Do you find yourself regularly checking your car’s value, hoping it’s not plummeting? Everyone has at one point or another. You don’t spend thousands of dollars with the intent to lose a large portion of this the moment you take your car off the dealer lot. Purchasing a car may feel like a lottery. You’re excited at first but quickly find yourself hoping your car will keep most of its value in the future.
Here, we’ll explore vehicles that are on the fast track to losing value. We’ve compiled data from credible sources to help you save time and potentially money. Use this list to avoid financial anxiety as you purchase your next vehicle.
1. Cadillac Escalade ESV – $155,000
At first glance, this might seem like a huge shock, considering the enduring popularity of Cadillac’s Escalade SUV. But when you factor in that the Escalade is an SUV designed to tow over 8,000 pounds and fit up to eight passengers, it becomes clear why Escalades tend to lose over half their value after five years. Besides, when buyers really want an Escalade, they tend to buy a new one.
2. Volkswagen Phaeton – $102,000
This may be the most perplexing car on this list simply because it has an incredible reputation for performance and reliability while also lacking the luxury label that makes other luxury cars so vulnerable to losing their resale value. Perhaps because Volkswagen’s then-chairman insisted on releasing the Phaeton with the Volkswagen label, many people were confused by this car.
3. Lincoln Navigator L – $99,000
If you see a recurring trend throughout this list, it’s that luxury SUVs are generally terrible at maintaining resale value. That’s definitely the case with Lincoln’s Navigator L. Even an SUV from a reputable American automaker faces the same problem. If you want to avoid buying a Navigator that loses over half its value in five years, you’re likely better off buying a used model.
4. BMW 7-Series – $97,000
Though BMW has historically been considered a prestige brand, not even these German luxuries are immune to market forces. Instead, BMW’s flagship sedan line loses a jaw-dropping 61.8% of its value over five years on average. If you want a BMW because you want a BMW, this might not be a big deal. But if you’re hoping a BMW purchase will be some kind of investment, then BMW’s 7-Series is not the car for you.
5. Mercedes-Benz S-Class – $118,000
For decades, the Mercedes-Benz S-Class has been the hallmark of elite luxury for sedans. Despite this storied history, iSeeCars found that the S-Class tends to lose 55.7% of its value over five years. Like Cadillac Escalades, the most devoted Mercedes-Benz S-Class fans often prefer buying new. Not to mention that the required maintenance for used S-Class cars negates any potential savings over buying new.
6. Mercedes-Benz GLS – $87,000
Mercedes makes the list again with its GLS model, this time with a luxury SUV. According to iSeeCars, the Mercedes-Benz GLS tends to lose 55.5% of its value after five years. While it looks and feels awesome to have an SUV that’s jam-packed with so many high-tech features and amenities, it’s highly expensive to fix these tech issues should anything go wrong.
7. Tesla Model S – $75,000
Due to the fast-evolving technology of electric vehicles, the fast-aging core design of Tesla’s signature Model S, and the growing chorus of complaints over Tesla’s technical issues, it really should not be a surprise that, according to iSeeCars, Tesla’s Model S tends to lose 55.5% of its resale value after five years. At this point, be grateful if your Model S lasts five years without any major maintenance problems.
8. Infiniti QX80 – $74,000
Yet another luxury SUV line makes the list. The Infiniti QX80 is essentially a Nissan Armada (see below) with nicer aesthetics and fancier fixings. It’s largely a fact of life that SUVs lose much of their resale value after leaving the lot. The QX80’s 58.1% loss of value over five years is basically on par with the resale value loss that the Cadillac Escalade and BMW X5 suffer.
9. Mercedes-Benz E55 AMG – $79,000
Mercedes-Benz’s AMG may be forever cherished as a trendsetter for packing a legendary amount of horsepower and potential speed into a fairly compact luxury sedan. Despite this, the E55 AMG bleeds resale value rather quickly. Maybe one day, this car will get more of the respect that its most devoted fans believe it deserves. But for now, that’s simply not the case.
10. Cadillac Escalade – $82,000
As mentioned earlier, the Cadillac Escalade may be an automotive pop culture icon with enduring popularity. However, that pop culture icon status simply does not translate into high resale value. When people really want Escalades, they tend to buy new. If you’re looking for Cadillacs with better resale value, you’re better off looking at the CT4 sedan.
11. Volvo S90 – $66,000
Even Volvo’s sterling reputation for safety and reliability can’t save the beautiful inside-and-out S90 sedan from brutal market forces. According to iSeeCars, the Volvo S90 loses 55.8% of its value over five years on average. This Swedish luxury brand is always a safe bet if you care about safety and reliability. But that’s not the case when it comes to resale value.
12. BMW X5 – $65,200
Unfortunately for BMW, its SUV line also performs poorly when it comes to holding value. There may be multiple reasons for this, such as an alarming amount of recalls in 2020 and 2021, its middling fuel economy (though the X5 Hybrid does perform better than the line’s counterparts), and the increasingly crowded lineup of luxury SUVs on the market.
13. Lexus LS460 – $61,000
If there’s a type of car that’s nearly as prone to losing a ton of resale value as luxury SUVs, it’s high-end luxury sedans. That’s the case with the Lexus LS460. Though the LS460 tends to get good grades for its high-quality materials and quiet ride, it’s just not a car that buyers are willing to pay a premium for once it’s taken on mileage.
14. BMW 5-Series Hybrid – $58,000
Yes, another BMW. Despite this gas-electric hybrid car’s impressive fuel efficiency and overall reliability, iSeeCars found that the 5-Series Hybrid lost a staggering 58.8% of its value over five years. If you care more about mileage and reliability, the 5-Series may still be worthwhile for you. But if you’re primarily interested in resale value, this is another BMW you should steer clear of.
15. Nissan Armada – $56,000
Though the Nissan Armada has a great reputation as a powerful SUV that can seemingly do it all, one thing it notably cannot do is hold its value. Most notably, the Armada’s long-term reliability problems likely weigh down its resale value. According to iSeeCars, the Nissan Armada loses 55.7% of its value after five years.
16. Lexus GS450H – $56,000
The Lexus GS450H may be known the world over as a high-speed, high-performance luxury sedan, but it’s not a car that’s good for high resale value. It doesn’t help that the core design of the GS models has hardly changed in over a decade. Ultimately, however, it likely comes down to the larger trend of luxury cars struggling to hold their value as soon as they leave the showroom.
17. Audi A6 – $55,000
Even with the Audi A6’s highly impressive aesthetics and high technological wizardry, the A6 still loses 56.3% of its value over five years. After all, one downside to all those high-tech bells and whistles is that maintenance can come at a high price, especially after the warranty runs out. You can’t say we didn’t warn you.
18. Jaguar XF – $54,000
Despite Jaguar’s generally solid reputation as a luxury car brand, the Jaguar XF sedan loses 57.6% of its value over five years, according to iSeeCars. If you really want a Jaguar XF but don’t want to take this much of a financial hit, buy this car used and with a good warranty that’s still in effect.