Electric Cars

The recently re-introduced Honda Prelude has demonstrated remarkable success in Japan, particularly appealing to an older demographic, substantially outperforming the manufacturer's initial sales projections. This hybrid performance coupe, despite facing skepticism in the United States regarding its market fit, has resonated strongly with Japanese buyers, many of whom are in their fifties and sixties. Their enthusiastic reception highlights a distinct difference in automotive tastes between the two regions. The Prelude's impressive sales figures in Japan, leading to a temporary halt in new orders, underscore its immediate popularity, contrasting with the more cautious outlook for its American debut.

In Japan, the new Honda Prelude has swiftly become a sales phenomenon. Honda's initial sales target was modest, aiming for around 300 units per month for the first two months. However, the actual demand far exceeded these expectations. Between September 5th and October 6th, approximately 2,400 orders were placed, indicating an overwhelming market response. This surge in popularity has led dealers to temporarily suspend new orders as they await increased supply, with Honda announcing plans to ramp up production to meet this unforeseen demand.

A notable aspect of the Prelude's Japanese success is the demographic of its buyers. Data from Honda Japan reveals that the majority of purchasers are individuals in their 50s and 60s. These older consumers often intend to use the Prelude either as their primary vehicle or as a secondary car. The pricing for the Prelude in Japan is set at 6,179,800 yen, which converts to approximately $41,000 USD. This price point is also anticipated for the US market, where the vehicle is expected to launch later in the fall.

The outlook for the Prelude in the US market presents a different picture. American consumers have shown a strong preference for crossovers, and while hybrid vehicles are popular, the sporty nature of the Prelude might not align with the typical hybrid buyer's expectations. Nevertheless, it has been a considerable period since Honda offered a small hybrid coupe in the US, with the CR-Z discontinuation more than a decade ago. It is conceivable that market attitudes towards this segment could have evolved since then.

The ultimate success of the Prelude in the United States will largely hinge on its pricing strategy. Current economic conditions mean that many American car buyers are operating on tight budgets and are actively seeking value rather than merely the best vehicle. High tariffs and the rising cost of living have made new car purchases challenging for many. If Honda can position the Prelude as a valuable offering or introduce attractive incentives, the coupe might achieve a degree of success. However, it is clear that the Prelude faces significant hurdles in capturing the American market.

Understanding a car's depreciation rate is as vital as its initial purchase price, as some vehicles rapidly lose value while others retain it remarkably well. A comprehensive study conducted by iSeeCars, examining 800,000 vehicle transactions between March 2024 and February 2025, sheds light on the models that experienced the most substantial value decline over a five-year span. This analysis reveals a significant disparity in depreciation across different automotive segments, with premium and electric vehicles often seeing the steepest drops, far surpassing the industry average depreciation of 45.6%.

Detailed Report on the Five Vehicles with Highest Depreciation

In a recent investigation by iSeeCars, several luxury and electric vehicles have been identified as having the most significant depreciation over a five-year period. The study, which analyzed approximately 800,000 vehicle sales from March 2024 to February 2025, pinpoints specific models and their respective value declines.

Sharing the fifth spot for highest depreciation, both the BMW 5 Series and the Maserati Ghibli experienced a 64.7% loss in value. The Maserati Ghibli, with its higher initial price tag, saw a remarkable financial drop of $70,874, despite its striking design and powerful twin-turbocharged V6 engine (up to 424 hp). Its interior, however, featuring shared components with less luxurious brands, likely contributed to this decline. The BMW 5 Series, priced between $54,000 and $76,000, also suffered a considerable loss of $47,457. This midsize luxury sedan, known for its various engine options including a potent M550i twin-turbo V8, saw its 2020 model's value impacted by a 2021 styling refresh and infotainment upgrades.

The Infiniti QX80 secures the fourth position, losing 65% of its value, averaging a $53,571 decline. This large, three-row SUV, based on the Nissan Armada, featured a 5.6-liter V8 engine producing 400 horsepower and came with a starting price of around $67,000, reaching up to $91,000 for higher trims. Despite its luxurious amenities and off-road capabilities, it struggled to compete with rivals offering better value and technology.

Tesla's Model S ranks third, with a 65.2% depreciation, equating to an average loss of $52,165. The 2020 Model S, a high-performance electric vehicle capable of reaching 60 mph in 2.4 seconds and offering up to 373 miles of range, was initially priced from $69,500 to $92,000. The rapid evolution of EV technology and the high initial cost of this premium model are significant factors in its steep depreciation.

The BMW 7 Series takes the second spot, depreciating by 67.1%, or an average of $65,249. As BMW's flagship sedan, the 2020 model offered powerful engine choices, including a 601-horsepower twin-turbo V12, and opulent interiors. However, its high price point, significant maintenance costs, and a perceived lack of competitive edge against rivals, coupled with the absence of modern features like Android Auto, contributed to its substantial value drop.

Finally, the Jaguar I-Pace leads the list with a staggering 72.2% five-year depreciation, representing an average loss of $51,953. This electric SUV, which started around $69,850, faced a dual challenge: being an early EV model in a rapidly evolving market and belonging to a brand (Jaguar) currently pausing vehicle manufacturing. Despite its impressive 253-mile range and fast-charging capabilities, and a combined 394 horsepower from its electric motors, Jaguar's reputation for reliability issues played a critical role in its dramatic depreciation.

The findings from this depreciation study offer valuable insights for both current and prospective car owners. It underscores the financial implications of purchasing certain luxury and electric vehicles, where the initial "sticker shock" can be followed by a significant "resale shock." For buyers, these models, once past their initial depreciation curve, might represent excellent value in the used car market. However, for sellers, it's a stark reminder of the rapid decline in value for vehicles that are either in highly competitive segments, part of brands with questionable reliability, or at the forefront of quickly advancing technologies like EVs. Understanding these trends can help consumers make more informed decisions about their automotive investments.