What is the most depreciating car brand?

[VanAlice]

The most depreciating car brands are typically luxury marques like Maserati and specific models from BMW (7 Series), alongside electric vehicles from brands like Tesla (Model S/X). Over five years, these can lose over 60% of their value, with extreme cases like the Jaguar I-PACE exceeding 70%. The Toyota Mirai, a hydrogen vehicle, is an outlier with a residual value as low as 15.6% due to niche fuel infrastructure, not brand-wide failure.

Depreciation is driven by high initial cost, expensive maintenance, rapid technological obsolescence (especially for EVs), and lower mainstream demand for certain luxury models. Industry data from sources like Kelley Blue Book and iSeeCars consistently places these brands at the bottom of retention rankings.

Brand / Model Example	Category	Typical 5-Year Depreciation	Key Reason
Maserati (Ghibli)	Luxury Sedan	~64%	High maintenance costs, niche appeal, perceived reliability concerns.
BMW 7 Series (740i)	Luxury Flagship Sedan	~64.5%	Steep initial price, costly repairs, high model turnover reducing older versions' appeal.
Tesla Model S	Luxury Electric Vehicle	~ 55-60%+	Rapid battery/software advancements make older models seem outdated; significant price cuts on new models hurt used values.
Jaguar I-PACE	Luxury Electric SUV	Over 70%	Combines high EV depreciation with traditional luxury brand rapid value loss.
Cadillac Escalade ESV	Luxury SUV	~62%	High initial MSRP, significant incentives on new models, and strong competition in the segment.
Nissan Leaf	Mainstream EV	~65%	Early-generation batteries with degradation concerns and limited range compared to newer EVs.

For mainstream non-luxury brands, Buick, Ford, and Chrysler often show weaker resale value compared to segment leaders like Toyota and Honda. Their depreciation is influenced by higher fleet sales volumes, which flood the used market, and sometimes public perception lagging behind actual quality improvements.

The critical factor is total cost of ownership. A car with a high depreciation cost effectively adds thousands to your annual expense beyond fuel and insurance. Choosing a model with historically strong residual value, like a Toyota Tacoma or Honda Civic, is often a more financially sound decision than opting for a heavily discounted luxury model that will plummet in value.

[LeNova]

As a used car buyer for a large dealership, I see these cars roll in with shocking price drops. That Maserati someone paid $90k for five years ago? We might list it at $32k. The BMW 7 Series is a nightmare—expensive out-of-warranty repairs scare off most private buyers. My advice? If you must have a luxury badge, lease it. Don’t buy it expecting to hold value. The real gems on our lot are the boring Hondas and Toyotas; they sell fast with minimal price haggling because everyone trusts they’ll last.

[EliMarie]

I learned this lesson the hard way with my BMW 740i. I was thrilled with the deal I got—a huge discount off the new price. But fast forward four years, and its value had evaporated. When I went to trade it in, the offer was brutally low. The dealer explained that the new model was completely redesigned, making my “old” tech look ancient. Plus, the looming cost of potential repairs was a red flag for the next owner. The excitement wasn’t worth the financial hit. Now I drive a Lexus; its depreciation curve is far gentler, and I sleep better knowing it’s not a money pit.

[OmarFitz]

Electric vehicles are a special case for depreciation. It’s not just about the brand, but the battery. My 2019 Tesla Model S had amazing range for its time, but a 2023 model can go much farther on a charge and charges faster. That tech leap destroys the resale value of older EVs. It’s like an old smartphone—still works, but nobody wants it. Brands like Nissan with the early Leaf face this even worse due to battery degradation concerns. If you’re buying a new EV, think of it as enjoying cutting-edge tech, not as an investment. The market for used EVs is still figuring itself out.

[VanRuth]

From a pure financial planning perspective, depreciation is the largest cost of car ownership. A Maserati losing 64% of its value represents a direct loss of tens of thousands of dollars. This often outweighs fuel, insurance, and maintenance combined over five years. Consumers focus on monthly payments but ignore the asset’s collapsing value. Reliable data from industry analysts shows that choosing a model from a brand with high depreciation effectively means you are paying a massive premium for the badge and initial experience. For rational financial health, prioritize vehicles with proven high residual values, even if their upfront cost is slightly higher. The math almost always works in your favor at trade-in time.