The pandemic lockdown, high gas prices, and inflation have all affected the automobile market – for both new and used vehicles. While used car values shot up at the end of 2021, not all models have seen the spike.
As NADA reported in an earlier article, an iSeeCars survey highlighted vehicle depreciation and appreciation. The survey found that the average five-year-old car depreciated by only 33.3 percent from the manufacturer suggested retail price (MSRP). That’s a 17 percent decrease in lost value compared to 2021. The survey, which analyzed over three million five-year-old used cars sold in 2022, found that luxury cars lose the most value.
Used car shoppers are less likely to value the premium features of the luxury models. As higher gas prices increase demand for fuel-efficient vehicles, full-size luxury SUVs, like the Cadillac Escalade and the Lincoln Navigator, are particularly affected.
The 10 models with the highest depreciation in five years are:
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BMW 7 Series with an average 56.9 percent depreciation and $61,923 difference from MSRP;
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Maserati Ghibli with an average 56.3 percent depreciation and $51,168 difference from MSRP;
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Jaguar XF with an average 54.0 percent depreciation and $36,081 difference from MSRP;
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INFINITI QX80 with an average 52.6 percent depreciation and $44,265 difference from MSRP;
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Cadillac Escalade ESV with an average 52.3 percent depreciation and $55,128 difference from MSRP;
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Mercedes-Benz S-Class with an average 51.9 percent depreciation and $65,375 difference from MSRP;
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Lincoln Navigator with an average 51.9 percent depreciation and $41,426 difference from MSRP;
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Audi A6 with an average 51.5 percent depreciation and $33,331 difference from MSRP;
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Volvo S90 with an average 51.4 percent depreciation and $32,321 difference from MSRP;
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Ford Expedition with an average 50.7 percent depreciation and $32,674 difference from MSRP.
Want to know which used vehicles are doing the best? Read about The 10 Used Cars That Hold Their Value Best After 5 Years.
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