Top 5 Vehicles with the Steepest 5-Year Depreciation Rates
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.