The automotive market has gone crazy in the last several months. Many different factors – including Covid-related supply and production disruptions – contribute to an unstable environment, which has a negative effect on the prices of new and used cars. Overall, five-year depreciation is almost at record levels and there are obviously models that lose their value more than others over a five-year course.
iSeeCars has analyzed more than three million three- and five-year-old vehicles to see which cars depreciate the most and which ones hold their value best. On average, a five-year-old vehicle is just 33.3 percent cheaper compared to its value from MSRP. Interestingly, compared to last year’s data, that number represents a 17-percent decrease in depreciation.
It probably shouldn’t come as a surprise that large and luxury cars and SUVs show the highest depreciation over five years. Data from iSeeCars reveals the BMW 7 Series loses the largest portion of its value with a 56.9-percent depreciation. Interestingly, the same model was the second worst-performing in the agency’s 2017 report. The Maserati Ghibli is second in this year’s report with a 56.3-percent depreciation, while the Jaguar XF comes third with a 54-percent depreciation.
On the other side of the spectrum, the Jeep Wrangler holds its value the best over five years of ownership, losing just 7.3 percent of its value. This is an impressive result, followed by the Jeep Wrangler Unlimited at 8.7 percent depreciation. The Porsche 911 comes third, albeit with double the depreciation rate compared to the Wrangler.
Source: Read Full Article