The Top 5 Luxury Brands for Value Retention
When investing in luxury vehicles, one crucial aspect to consider is value retention. Although all cars experience depreciation, not all brands fare equally over time. If you’re interested in making a smart investment, let’s delve into the top five luxury brands renowned for their exceptional resale value.
Why Value Retention Matters
Depreciation is an inevitable process for all vehicles, yet some brands manage to retain their worth far better than others. For instance, while the stylish Alfa Romeo Giulia might turn heads, it significantly underperforms in the residual value realm, losing nearly 70% of its value within five years. In contrast, the Lexus RX 350 exemplifies the pinnacle of value retention, boasting an impressive retention rate of nearly 70%.
When you make a significant investment in a luxury model like a Mercedes or a Bentley, you want assurance that your vehicle will maintain its worth. That’s why we’ve curated this list of the top five luxury brands that excel in value retention over a seven-year span, ensuring that you’ll be getting your money’s worth.
Key Sources for Accurate Data
To provide you with the most current and reliable insights, we gathered data from a plethora of reputable sources including CarEdge and Kelley Blue Book. The rankings below showcase the brands based on their overall value retention over a seven-year lifecycle.
5. Bentley
7-Year Resale Value: 38.80%
Bentley secures the fifth spot on our list, edging out competitors like Mercedes-Benz and Genesis. The 2023 model year is particularly appealing, allowing you to pay just 72% of the original price while still enjoying 83% of the vehicle’s useful life. However, be mindful of Bentley’s depreciation curve, which sees a sharp drop of more than 10% in a single year between 2018 and 2019.
Key models to consider include the Bentley Continental GT (47.5% retention) and the Bentley Bentayga (30% retention).
4. Acura
7-Year Resale Value: 40.30%
Coming in fourth is Acura, the luxury division of Honda. The 2023 model year offers the best value, where owners pay about 63% of the original price while still retaining 83% of their vehicle’s useful life. A new Acura may lose an alarming 30% in its first year, but after this initial plunge, depreciation becomes more stable, averaging 5% annually.
Top choices for value retention include the Acura RDX (42.7%), Acura TLX (42.5%), and Acura ZDX (40.3%).
3. Audi
7-Year Resale Value: 40.50%
Audi takes third place, just slightly surpassing Acura. While a new Audi typically loses about 15% of its value in the first year, the 2023 models stand out, offering 74% of the original price with 83% of the vehicle’s useful lifespan still intact. Audi’s depreciation curve stabilizes significantly after 2023.
Consider models like the Audi A5 (48.9%), Audi S6 (46.9%), and Audi Q3 (45.9%) for their superior retention rates.
2. BMW
7-Year Resale Value: 41.60%
BMW proudly claims the second spot. However, beware: these luxury vehicles can lose over 25% of their value in the first year! If you’re considering the 2023 model year, expect to pay about 69% of the original price while still enjoying 83% of the vehicle’s lifespan. After 2018, BMW’s depreciation rate drops significantly.
Standout models include the BMW 530 (49%), BMW M340i (49%), and BMW i4 (49%).
1. Lexus
7-Year Resale Value: 45.10%
Unsurprisingly, Lexus emerges as the standout brand for value retention. The luxury division of Toyota not only dominates in resale value but also boasts an impressive 45.10% retention rate. Lexus vehicles tend to depreciate around 20% in the first year. The 2023 model year is your best bet, where you can purchase for 69% of the original price and retain approximately 83% of the vehicle’s useful life.
Top models in terms of retention include the Lexus RX 350 (57.1%), Lexus TX (51.5%), and the Lexus UX 250h (49.2%).
Conclusion
When it comes to luxury vehicles, value retention is a decisive factor in making an informed purchase. From Bentley to Lexus, the brands listed above not only offer elegance and prestige but also promise to hold their value better than others on the market. If you’re investing in luxury, these brands should undoubtedly be on your radar. Happy driving!
