Many would argue buying a brand-new luxury car is not the best idea because depreciation hits premium cars the most. Just how much money are you losing? A new study from iSeeCars analyzed more than 1.6 million new and lightly used cars to identify how depreciation impacts various models, not just from the upper echelon.
The Mercedes EQS is the undisputed king of deprecation, losing 47.8% of its value after only one year. The Nissan Leaf is right behind, at 45.7%, followed by the Jaguar F-Pace at 35.4%. The only BMW that made the top 20 was the 7 Series in 12th spot. According to the data obtained by iSeeCars, the seventh generation of Bavaria’s flagship sedan lost 29.8% after 12 months, much like the Dodge Challenger and Ford Mustang Mach-E.
Representing the equivalent of about $36,126, the G70’s depreciation rate of 29.8% is well above the overall average of 12.8% or approximately $5,778 after a year of use. The only other model from the BMW Group that appears in the rankings is the MINI 3-Door Hardtop, which loses 25.6% or around $28,578.
At the other end, the cars that depreciated the least were the Kia Rio, Mercedes G-Class, Ford Maverick, and the Toyota Sequoia. The Range Rover was the only model that actually went up in value, increasing by 2.8% ($4,067) to about $147,311 because of limited supply. It appears anxious customers aren’t willing to wait for Land Rover to deliver a new vehicle and settle for a lightly used SUV that’s immediately available to buy. The Range Rover transitioned to the new generation in 2022, so it makes sense that inventory was low and demand high.
The study was conducted on new and slightly used cars that were for sale from January through March 2024. New cars were either 2023MY and 2024MY vehicles whereas the used ones were 2022MY and 2023MY cars within 20 percent of 13,476 miles. That’s roughly as much as the average miles driven by an American each year.
Source: iSeeCars
