Although cars from some premium brands such as Jaguar, Land Rover and Lexus tend to lose their value more slowly, this is not always the case.
Cars from many premium manufacturers lose their value faster than their cheaper counterparts.
As you can see in the chart, Chrysler, Audi and Seat rank among the manufacturers whose cars lose the most value over the years. For example, the maximum depreciation of a new Chrysler car will eventually drop to -96.8% (averaged over 25 years), making it a brand that loses most of its value in the market. In fact, about half of the automakers on the negative end of this auto depreciation graph are premium manufacturers. While consumers love cars from Infiniti, BMW and Volvo, their value declines significantly over time.
In comparison, Toyota cars reach their lowest value after 19 years, while BMW cars reach their lowest value after 21 years. But Toyota vehicles lose about 88.7% of their value, while BMWs lose 93.8%. What factors account for these differences?
“BMWs and other luxury cars tend to come with features and technological improvements that used car buyers don’t appreciate. If you can afford a new BMW, Mercedes-Benz or Land Rover, you probably want to buy the ultimate in luxury and innovation. But those looking for a used car prioritize price and maintenance costs over all the features they can do without. That’s why many buyers find a used Toyota car more attractive than a BMW,” reveals M. Buzelis.