The 7 Fastest Depreciating SUVs in the Market
2018 Cadillac Escalade by Kevauto — CC BY-SA 4.0
Cars are notorious for their fast depreciation rates. On average, vehicles lose about 15% of their retail value the second they drive off the lot by a customer. Whether or not that’s fair can be argued, but the fact is vehicles continue to depreciate with additional miles, years, minor wear and tear, and branding or style changes.
This may not be great for the person who just bought a brand new car but it’s a GREAT thing for someone looking to get a nearly new car at a low price.
Vehicle type, brand, year, and other factors like location and “implied value” are all things that can impact a car’s depreciation. Specific vehicle’s like luxury & sports cars, trucks, and SUVs are some of the fast depreciating vehicles out there.
This isn’t necessarily based on the “you get what you pay for” idea since many of the brands listed below are high quality SUVs, and there are some specific reasons each model can lose its value at a faster rate than another model or one of its competitors.
The good news if you are looking for a high quality SUV then you can get a great deal on one of the seven fastest depreciating SUVs listed below.
Cadillac Escalade ESV: 63.6% Depreciation Value
The Escalade comes in as one of the fastest depreciating SUVs and has the largest decrease in monetary value after 5 years - about $54,000 total after the initial purchase. Who doesn’t want to be seen driving around in an Escalade, and for half the price? You’d be crazy not to.
The Escalade is one of the best selling large SUVs in the luxury class on an annual basis, so it’s very popular but the market isn’t all that scarce. It’s fairly easy to find a used model that’s around 2-3 years old and Cadillacs are generally well maintained, giving you a better overall long term deal. Used Escalades are a great investment if you’re looking for a durable and luxurious combination to have for a while.
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BMW X6: 63.8% Depreciation Value
One of two BMW models to make the list, the X6 expects to have a total loss in value around $50,000 after 5 years of use. It’s extremely well rated by critics, drivers, and consumer reports alike, and might be one of the best all around options to get if you’re looking for a deal on an SUV.
While it’s one the fastest depreciating SUVs out there for new car buyers, you can take advantage of a great deal after someone drives it for a few years.
It’s one of the highest base models for SUVs in general starting in the high $60,000s and getting up all the way to the $100,000+ for additional features. You can get all of that for about half the price in 3-4 years. The list price is pretty steep, so it makes sense why it drops so quickly after leaving the lot and makes for a better deal in resale after a few years in use.
Infiniti QX60: 63.9% Depreciation Value
The luxury SUV wagon has yet to catch on in mass volume, so it’s a great opportunity for someone looking for a good deal to get some extra cargo space. Maybe a little bit ahead of its time, the demand is just not there for the QX60 and it loses around $35,000 in monetary value after 5 years of being purchased.
It’s a solid luxury crossover and has a surprisingly high amount of towing and storage, so it’s great for families and travel. It’s not uncommon to find this close to half off its initial new model price so if you can find one you should put it at the top of your list.
THE BEST USED LUXURY CARS ON THE MARKET
Buying a used or CPO luxury car is one of the smartest buys you can make - you can get a lot of car for not much money. You can pick up a three-year-old luxury car for about half of what you’d pay new. Check out this list of the best used luxury cars on the market to find the best deals.
GMC Yukon XL: 64.4% Depreciation Value
The Yukon is the fastest depreciating SUV that isn’t categorized as a true luxury SUV. It’s a bit of a workhorse and you probably see it all the time at sporting events and on college campuses.
Large SUVs as a whole had a rough year with pretty much every brand performing worse than it did in 2019 which gives used buyers a big advantage over other vehicle styles.
The Yukon is a great alternative for a minivan and the overproduction and under selling makes it a GREAT time to buy if you’re in the market for a used SUV.
BMW X3: 65.1% Depreciation Value
This compact “sport activity vehicle” is one of the highest rated by consumers and critics alike, but still manages to crack the top 3 of fastest depreciating SUVs. The critiques are that it drives more like one of the BMW sports sedans than a compact SUV (which isn’t necessarily a bad thing). It doesn’t hurt that it’s one of the best looking SUVs out there.
Is it a bad idea to buy an X3? Probably not, especially if you can get a great deal on it. It still has the quality of craftsmanship we expect from the BMW lineup and being able to save roughly $35,000 after 5 years is a great buy. Would you rather buy it at $70,000 or $35,000? Seems like a no-brainer.
Lincoln Navigator L: 65.7% Depreciation Value
While it’s known for its luxurious space and style, this actually ends up hurting the Navigator in the resale value since it’s so often used for short-term travel and from business and corporate events. It’s one of the most commonly used vehicles for livery driving or chauffeuring, and on average loses about $45,000 from purchase to re-sale.
Navigator’s have been gradually declining in annual sales, so there’s a good chance you can snag one that’s just a few years old with limited mileage. The style and interior are unmatched and you can get a great deal if you’re looking for something with maximum seating capacity and can add a little luxury for your travel.
THE BEST USED SUVS UNDER $10,000
We looked into price, reliability, features, and more to create this list of the best used SUVs under $10k on the market today. Take a look - some of the best used SUVs have gone mostly overlooked or forgotten.
Lincoln MKT: 66.1% Depreciation Value
Another vehicle from the Lincoln family the MKT ends up on top of the fastest depreciating SUVs out there. It loses an average value of about $38,000 after 5 years of ownership.
Lincoln has gone the same route as many other popular manufacturers and began focusing on crossover and mid-size SUVs, but the MKT didn’t make the cut going forward and has plenty of used options available.
It received mixed reviews for its exterior and was ultimately discontinued in 2019, but the third-row luxury crossover is a solid option if you are looking to have tons of cargo space and get a great deal on a luxury brand.
The Buyer’s Advantage
Long story short, if you’re in the market for an SUV you can use depreciating value to your advantage to save thousands and thousands of dollars on some great models. The great thing about the 7 SUVs listed above is that most qualify as luxury brands that most of us wouldn’t be able to afford as new models.
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