Vehicle depreciation overview A significant factor to consider when purchasing a new car is depreciation. This is a measure of the reduction in a vehicle’s value over time, starting immediately after purchase from the dealership. Several factors such as cost of ownership, market demand, maintenance and repair costs can affect resale value, but a high-purchase-price car can lead to significantly high financial loss, with the gap between the amount paid by the customer for a new car and the price it commands three years later forming a considerable share of the total ownership expense.

For this reason, luxury vehicles and electric cars tend to depreciate significantly over five years. With significant advancements in battery technology, ever-evolving consumer tastes, advanced electronic and mechanical systems, and hefty first-price sticker costs, it’s no wonder these vehicles lose value so quickly. Let’s review some of the models in these lists that have contributed to such a financial loss for many owners. In the list below, these are the ten most significant five-year depreciation losses.

1. Jaguar I-Pace

Jaguar I-Pace The fully electric luxury SUV has one of the highest five-year depreciation rates in the group. During five years of ownership, you can expect to lose $51,953 off the initial purchase price, equating to a depreciation of 72.2%. If you’re looking to purchase a Jag I-Pace, you’ll get the promise of electric luxury but the initial cost means there is a lot of value to shed when the time comes to sell it to a new owner.

Jaguar I-Pace Depreciation Factors:

• Approximately 72.2% five-year depreciation
• Around $51,953 value loss
• Fully electric luxury SUV
• High original purchase price
• Rapid EV technology development

Electric vehicles such as the I-Pace can experience accelerated depreciation because battery technology and overall EV capabilities continue to develop rapidly. Newer models can arrive with improvements in range, charging technology, battery systems, and other features, making older vehicles less attractive to some used-car buyers. When those technological changes are combined with the I-Pace’s relatively high initial MSRP, the percentage and dollar value losses can become substantial. Secondary-market hesitation surrounding older EV technology therefore contributes to the model’s significant five-year depreciation.

2. BMW 7 Series

The BMW 7 Series represents the luxury flagship for the BMW brand and provides you with a high-end vehicle but also presents you with a high initial purchase price. The 7 Series depreciates at the fastest rate of any other BMW model, after five years of ownership, at about 67.1% of its original value. This percentage depreciation may result in a dollar amount of over $65,000 difference from its original sticker price, which accounts for most of the total dollar amount depreciation.

BMW 7 Series Depreciation Factors:

• Approximately 67.1% five-year depreciation
• More than $65,000 potential loss
• Flagship luxury sedan
• High original sticker price
• Complex electronics and maintenance

Large luxury sedans often face significant depreciation because used-car buyers may be cautious about the long-term costs associated with sophisticated electronics, advanced equipment, and maintenance. While these features can make a new 7 Series attractive, their presence can also create concerns for buyers considering an older example outside its original ownership period. The high initial cost further magnifies the dollar amount lost as the vehicle’s resale value declines. These factors combine to push the BMW 7 Series substantially below its original purchase value after five years.

3. Tesla Model S

The Tesla Model S is another premium electric vehicle that experiences a considerable decline in value over a five-year period. According to the source data, the luxury electric sedan loses approximately 65.2% of its original value during five years of ownership. In monetary terms, this represents a loss of around $52,000 from its initial value. Its premium positioning means that even a large percentage decline can translate into a significant financial loss for the original owner.

Tesla Model S Depreciation Factors:

• Approximately 65.2% five-year depreciation
• Around $52,000 value loss
• Premium electric sedan
• Rapid EV technology changes
• High original purchase price

Rapid developments in electric vehicle capabilities can influence the demand for older models in the used market. Improvements in battery technology, software, driving range, and other EV features can make newer vehicles appear more appealing compared with earlier versions. The Model S also began with a relatively high purchase price, meaning that even a percentage decline can result in a large dollar loss. Together, technological changes and its premium starting price contribute to its substantial five-year depreciation.

4. INFINITI QX80

The INFINITI QX80 is a large luxury SUV that experiences considerable value loss as it moves from the new-car market into the used-vehicle market. Over a five-year period, the QX80 loses approximately 65.0% of its original market value. This places it among the more heavily depreciating models in the non-electric luxury SUV segment. Its large size, premium positioning, and high original sticker price create the conditions for a significant financial difference between its new and used values.

INFINITI QX80 Depreciation Factors:

• Approximately 65.0% five-year depreciation
• Large luxury SUV
• High original sticker price
• Significant ownership costs
• Changing used-market demand

Large luxury SUVs can experience substantial dollar depreciation because their expensive starting prices create a wide gap between their original cost and later resale value. As these vehicles age, potential buyers may also consider ongoing maintenance requirements and other ownership expenses before deciding how much they are willing to pay. Changes in consumer preferences can further influence demand for large premium vehicles. These combined considerations can reduce used-market valuations and contribute to the QX80’s significant five-year value decline.

5. Maserati Ghibli

The Maserati Ghibli combines exotic Italian styling and performance with the ownership characteristics associated with a premium luxury vehicle. Despite its distinctive appearance and performance-oriented image, the Ghibli experiences substantial depreciation over five years. The source data places its depreciation rate at approximately 64.7%, representing a loss of well over $70,000 from its original MSRP. Because the vehicle starts at a high price, the financial impact of this percentage decline becomes particularly large in dollar terms.

Maserati Ghibli Depreciation Factors:

• Approximately 64.7% five-year depreciation
• More than $70,000 potential loss
• Exotic Italian styling
• High initial MSRP
• Specialized maintenance concerns

High-end performance and luxury vehicles can experience steep depreciation because their original purchase prices are considerably higher than those of many mainstream vehicles. As the cars age, secondary buyers may also be concerned about maintenance expenses, repair complexity, and the costs associated with specialized components. These considerations can reduce demand for older examples even when the vehicle continues to offer distinctive styling and performance. The result is a sharp decline in resale value that places the Ghibli among the heavier depreciators in the source data.

6. BMW 5 Series Hybrid

The BMW 5 Series Hybrid demonstrates that electrified powertrains do not automatically prevent significant depreciation in the luxury-car market. Over a five-year ownership period, the model experiences an estimated depreciation rate of approximately 64.7%. Although hybrid vehicles can sometimes retain value differently from fully electric models, the 5 Series Hybrid still faces a considerable decline as it moves into the used market. Its premium positioning and complex powertrain contribute to the factors affecting its long-term valuation.

BMW 5 Series Hybrid Depreciation Factors:

• Approximately 64.7% five-year depreciation
• Premium European sedan
• Hybrid powertrain
• Complex electrical systems
• Potential long-term maintenance concerns

The combination of a traditional internal-combustion engine and electrical components can make older hybrid vehicles appear more complicated to some second-hand buyers. Once a vehicle moves beyond its original factory coverage, buyers may become more conscious of potential maintenance and repair liabilities associated with its multiple systems. This can influence demand and the prices buyers are willing to pay. As a result, the 5 Series Hybrid can experience a significant reduction in resale value despite its premium badge and electrified powertrain.

7. Nissan Leaf

The Nissan Leaf demonstrates the impact of depreciation for more affordable electric vehicles, as well as luxury electric cars. As a fairly affordable electric car, the Leaf has relatively high depreciation with a 64.1% loss of value after 5 years (source data). This depreciation can be attributed to the fact that the Nissan Leaf’s older battery and range technology will soon be presented with newer electric cars that will likely have enhanced features, resulting in lower depreciation in the future.

Nissan Leaf Depreciation Factors:

• Approximately 64.1% five-year depreciation
• Mainstream electric vehicle
• Battery degradation concerns
• Rapid EV development
• Newer models offer improved technology

Battery health is an important consideration for buyers evaluating an older electric vehicle. Concerns about degradation and long-term battery performance can influence how much consumers are willing to pay for a used EV. At the same time, newer electric vehicles can introduce greater range and improvements in battery chemistry and overall technology. These developments can make earlier models such as the Leaf appear less competitive in the used market, contributing to the steep financial loss experienced by original owners.

8. Maserati Levante

What Is the Levante? The Maserati Levante offers all the styling, performance and finesse of an Italian luxury performance brand in the SUV space, but that high-end nature doesn’t save it from hefty depreciation. Based on data from this source, the Levante depreciates about 63.7% over five years. It has the practical form of a luxury crossover combined with the performance-focused nature of an exotic car marque, but the high-end pricing that comes with that combination can play a role in the model’s heavy depreciation.

Maserati Levante Depreciation Factors:

• Approximately 63.7% five-year depreciation
• Italian luxury SUV
• High-performance character
• Specialized servicing requirements
• Significant resale-value decline

Like other Maserati models, the Levante can face concerns surrounding the potential cost of maintaining an aging luxury performance vehicle. Secondary buyers may consider specialized servicing, repair expenses, and long-term ownership costs before purchasing a used example. These concerns can reduce demand and place additional pressure on resale prices. As a result, the Levante’s combination of high initial pricing and potentially expensive ownership requirements contributes to its substantial five-year depreciation.

9. Tesla Model X

Tesla Model X Vs Ice Car On both the Tesla Model X’s electric performance and technological features the car excels, with the Model X also leading in utility and luxury. While this makes the Model X a great package for consumers, it also means that the Model X suffers a significant depreciation, with the SUV losing around 63.4% of its value after five years. Given that the Model X was a high retail price vehicle, this equates to a lot of money lost.

Tesla Model X Depreciation Factors:

• Approximately 63.4% five-year depreciation
• Premium electric SUV
• High original retail price
• Rapid battery technology changes
• Evolving EV software standards

The market for used EVs is rapidly changing and newer vehicles are offering advancements in battery power, software, charging systems and overall vehicle performance. As a result, consumers may have different expectations and preferences for pre-owned EVs, which could limit supply of the same vehicle on the market and impact other similar vehicles’ values. For a vehicle like the Model X, initial purchasing costs are very high, amplifying the effect of large percentage decreases in value.

10. Cadillac Escalade ESV

The Cadillac Escalade ESV represents the large full-size American luxury SUV segment, combining extensive interior space with bold exterior styling and a premium market position. Despite its strong presence and recognition, the Escalade ESV is not immune to significant depreciation. Over five years, the source data indicates that the model loses approximately 62.9% of its original MSRP. Its high starting price means that this percentage decline can represent a considerable financial loss for the original owner.

Cadillac Escalade ESV Depreciation Factors:

• Approximately 62.9% five-year depreciation
• Full-size luxury SUV
• High original MSRP
• Significant fuel expenses
• Long-term ownership costs

A full-size luxury SUV (not ESV) is a huge dollar loss when it hits the used market and fuel, maintenance and ownership costs can further suppress resale demand. Clearly, depreciation is driven by the purchase price but also by changes in technology, mechanical content and sophistication, maintenance costs and availability of parts, battery issues and shifts in customer tastes and preferences. Buyers look at total value retention over time when buying luxury and electric/hybrid vehicles, along with purchase prices.