9 Luxury Cars That Hold Their Value (With Pictures)
Depreciation in cars is essentially the price you pay for using and owning the car, and it is almost inevitable that any car will face depreciation because the value of the car drops as it gets older and covers more miles. However, some cars depreciate more quickly than others, while others hold their value for longer.
Below are nine luxury cars that hold their value well and therefore have a lower depreciation rate than others.
The 9 Luxury Cars That Hold Their Value
1. Porsche 911
The Porsche 911 is an iconic European sports car and is widely regarded as one of the best sports cars of all time. It is this reputation that has seen the Porsche 911 develop a base of ardent followers, including those that will pay top market value for pristine examples of the right model.
If you buy a $210,000 Porsche 911, you can expect its value to fall less than 5% in the first year, less than 10% in 3 years, and just 15% in 5 years.
2. Lexus ES 350
The Lexus ES 350 is a luxury mid-sized Sedan. It isn’t the sportiest in its class, although it is no slouch by any means, but it does make up for this with an incredible level of luxury. It also retains its value very well with a $47,000 Lexus losing 5% in 1 year and 8% in 3 years.
However, there is something of a drop at the 4-year mark when depreciation totals around 25%. That does mean there are some bargain 4-year-old or older examples on the used car market, though.
3. Mercedes Benz G Class
The Mercedes Benz G Class was clearly inspired by the Land Rover as well as the original G Class from the 1970s. Originally developed as a military vehicle, the modern G Class’s interior certainly doesn’t suggest anything spartan or military.
While luxury does come at a cost, in this case, the G Class does hold its value well. A $185,000 G Class actually loses 12% in the first year but only 15% in 3 years, which means it holds a lot of value in those two intervening years. A 4-year-old model retains about the same value, too, but at 5 years, it starts to depreciate more quickly.
4. BMW 3 Series
The BMW 3 Series is a well-loved Sedan that is driven by business and social users around the world. It holds its value especially well over the first 3 years, although the value does drop quite considerably at that point.
One-year depreciation is approximately 7%, and the car will have lost 9% of its value after 2 years and 11% after 3 years. After 4 years, a 3 Series can lose as much as 28% of its value.
5. Audi TT
The Audi TT is a relatively affordable luxury sports car and like the BMW 3 Series, it holds its value especially well for its first 3 years. It also loses a lot of value once it reaches around 7 years when it will be worth less than half the original cost. One-year depreciation is about 6% and the TT loses 15% within 2 years and 17% within 3.
6. Lexus RX 350
The Lexus RX 350 is a mid-sized SUV that has sporty looks and a luxurious interior. It is also famed for its reliability, which may be the reason that it holds its value better than a lot of other vehicles, either of this type or generally.
The RX 350’s depreciation is quite steady, losing 7% after 1 year, 14% after 2 years, and 21% after 3 years. Even after 7 years, the Lexus is still expected to retain more than 60% of its original value, so it is a good choice for those that like to keep hold of their new car for several years.
7. Acura ILX
The Acura ILX is considered a luxury sports sedan and it certainly has the exterior to meet this label. It’s also an affordable car that is manufactured by Honda and based on the popular Civic. However, as luxurious as it seems on the outside, it doesn’t tend to perform well against other cars in its class.
With that said, it holds its value well, at least for the first 3–4 years, although depreciation does kick in at around the 5-year mark. Expect the $32,000 Sedan to lose just 4% in its first year and 7% in the first 2 years, 12% in 3 years, and 25% in 4 years. By the fifth year, the ILX is expected to lose 35% of its value.
8. Tesla Model 3
The Tesla Model 3 is an electric vehicle that has taken the world by storm. It is more affordable than the company’s Model S and because it is so new, it is difficult to predict exactly where prices will go.
According to analysts, owners can expect this car to hold its original value for the first 2 years of ownership before losing 13% of its value in year three. This makes the 3-year-old Model 3’s a good buy on the used car market and means that most buyers would benefit from selling after 2 years if they are looking to recoup as much of their initial investment as possible.
9. Tesla Model X
The Tesla Model X is a luxury crossover that has acres of space inside and a raft of luxury and high-end features. Despite this, some models have an enviable 0–62 mph time of 3 seconds, thanks to the electric motor. It is something of a phenomenon, although not all potential buyers will like its styling. The Model X has slightly more typical depreciation than the Model 3, losing 13% in the first year and 15% and 17% in the first 2 and 3 years, respectively.
Depreciation in cars is virtually unavoidable, although owners of two-year-old Tesla Model 3s might disagree with that. On the whole, though, cars lose value with every passing year, with exceptions typically being highly sought-after years and models that are difficult to get hold of.
Luxury cars can hold their values well, although the figures above assume typical mileage of around 12,000 miles per annum and no major damage or faults with the car.
Featured Image Credit: capitalstreet_fx06, Pixabay