New as soon as it left the showroom car immediately loses a significant portion of its retail value. While the value of a vehicle continues to decrease over time, certain brands depreciate more than others.
In order to determine which car brands are depreciating the most, the automotive experts at carVertical conducted a study and analyzed more than 72 million cars. 2019 – 2022 Data records provided in Europe, USA and Australia.
Porsche holds its value the best
Porsche (-64.4%), Jeep (-84.4%) and MINI (-85.5%) are the 3 least depreciating brands: their share of value remained the largest minus the original price the lowest market value of the car. Thus, Porsche will lose only 64.4 percent over the years. of its value, and Lexus – 89.9 percent.
“Although Porsche produces sports cars, its models are practical enough and suitable for everyday driving. The 911 is one of the most iconic and beloved models of all time. So it is not surprising that its demand exceeds supply. “Porsche cars are reliable, durable and have a unique appearance that attracts customers,” says Matas Buzelis, car expert and head of communication at carVertical.
More traditional vehicle brands such as Hyundai and Toyota are also characterized by high residual value. These vehicles are more affordable and tend to have lower maintenance costs, making these models more sought after by used car buyers.
While some premium brands such as Jaguar, Land Rover and Lexus tend to depreciate less, this is not always the case.
Many prestige car brands lose more value compared to cheaper ones
The most depreciating car brands over the years are Chrysler, Audi and Seat. For example, the maximum depreciation for a new Chrysler will eventually reach 96.8 percent. (on average over 25 years), so this brand is losing the most value in the market.
Almost half of the brands on the downside of this car depreciation chart are premium. Although people love Infiniti, BMW and Volvo, their value decreases significantly over time.
In comparison, Toyota cars reach their lowest value after 19 years and BMW after 21. However, Toyota cars lose about 88.7 percent. of its value, and BMW – 93.8 percent. What accounts for these differences?
BMW and other luxury car brands tend to have features and technology that used car buyers don’t appreciate. If you can afford a new BMW, Mercedes-Benz or Land Rover, you probably want all the luxury and innovation you can get. A person looking for a used car prioritizes price and maintenance costs over a variety of unnecessary features. Therefore, for many buyers, a used Toyota is more attractive than a BMW, says M. Buzelis.
Owners of Audi (-96.2 percent), Seat (-95.8 percent) and Skoda (-95 percent) shouldn’t expect good deals when selling their old cars either.
Used cars reach their lowest value at different times
According to carVertical, a car history verification platform, cars depreciate the most in an average of 20-23 years. However, different car brands depreciate the most at different times.
Porsche and MINI cars cost the least after 15 years. Later, their value starts to grow again. Well-maintained models can be a worthwhile investment. Isuzu, Suzuki, Kia and Dacia are characterized by the complete opposite – they reach the very “bottom” in 30 years.
If a car model is considered rare, its value can increase significantly over time. BMW only produced 891 M5 E34 Tourings in the 1990s. Twenty of them were special Elekta for the Italian market. These exclusive models, with 335 hp 3.8-liter engines, were also specially painted and distinguished by their interior design. Finding a used Elekta is very difficult today. Car enthusiasts should be willing to spend at least 100 thousand. dollars to have this model in your garage.
While the average car will probably end up in a landfill in 20-30 years, a Porsche or Jaguar model with proper documentation and a service book and an impeccable history can become even more valuable over time than it was on the day of purchase.