According to research, luxury car brands are losing value the fastest.
The old rule is that the car loses 20 percent of its price immediately after leaving the car dealership. And the truth is not far away, although maybe not today when new cars are often waited for more than a year, but nominally the car quickly loses in price, according to Index.hr.
Yet, although the value of each vehicle declines over time, some brands lose in value more than others. To determine which car brands are losing the most value, automotive industry experts at the carVertical platform conducted a study in which they analyzed more than 72 million data relevant for the period from 2019 to 2022 in Europe, the United States and Australia. Below are the conclusions of the research.
Porsche loses the least in value
When the lowest market value of the car is subtracted from its initial price, the results show that Porsche (-64.4%), Jeep (-84.4%) and MINI (-85.5%) lose the least in value over the years. For example, in the same period, Porsche will lose 64.4%, and Lexus as much as 89.9% of value.
Among the vehicles that rank well in the competition of large series brands are Hyundai and Toyota, and the upper house, contrary to expectations, includes Jaguar and Land Rover.
Audi and Seat at the very bottom
Many luxury car brands are losing more in value than more affordable brands. In addition to Chrysler as a record holder in terms of value loss, Audi and Seat also entered. For example, Audi will lose 96.2% of its value over time (on average in 24 years). Interestingly, approximately half of the brands at the bottom of this loss table fall on luxury cars.
By comparison, Toyota cars reach their lowest values when they are 19 years old, and BMWs when they are 21 years old. However, Toyota's vehicles lose about 88.7% of their value, and BMW's 93.8%. What factors affect these differences?
"The person looking for a used car gives priority to price and maintenance costs over all unnecessary features. That's why a used Toyota is more attractive to many customers than a BMW," says M. Buzelis.
When do cars reach their lowest value?
The average age at which vehicles have the greatest loss in value is 20-23 years.
Porsche and MINI have the lowest price when they turn 15 years old. After that, their value begins to grow again. Well-preserved models can be a worthwhile investment. Isuzu, Suzuki, Kia and Dacia are on the opposite side of the spectrum - they reach their lowest value only when they are 30 years old.
There are many examples that show that once ready-made cars, and today old-timers, achieve high prices. The BMW E30 better known as the Cube is just one of the cars that have become a great investment. The same goes for other old premium models, but with the precondition of a service book and the perfect condition of the car.