Luxury cars look sleek, offer the ultimate in comfort, and cost a pretty penny — except when it comes to resale. For the wealthy, this may not be a concern, but for those looking to recoup their investment, some luxury cars can be a real pain.
“The main reason these cars are on this list is because they lose almost 50 percent of their value within five years,” said Jamie Mitri, manager of Cumberland Auto Sales and Service. “Automakers will joke and say that the minute you drive these cars off the dealer’s lot, you’re basically throwing money out the window.”
So why do values depreciate so rapidly? Experts categorize these factors into three main causes: technological obsolescence (flashy, innovative models quickly make current models obsolete), exclusivity (expensive limited-edition models are difficult to resell due to a small pool of buyers), and brand reputation and reliability (a history of quality issues and costly repairs).
GOBankingRates also spoke with Mitri, as well as Tomer Ruderman, founder and owner of Car Keys Ottawa, Gretchen Seidel, automotive consultant and CFEI at Seidel & Co., Chris Pyle, automotive expert and mechanic at JustAnswer, and Mark Beneke, owner of Westland Auto Inc., to find out more.
Here are the 5 luxury cars with the lowest resale value.
