These 3 Luxury Cars Have The Worst Depreciation Rate

Luxury cars are for most Nigerian drivers, but did you know that they depreciate in value more than you can imagine? Whenever a celebrity or an influencer buys a luxury car and posts about it on their social media pages, it is always met with congratulations and sometimes envies from onlookers because luxury cars continue to remain the talk of the town, and it seems that everyone wants to win a luxury car these days. 

Luxury cars such as the Mercedes-Benz, BMW, Lexus, and Bentley are the most popular automakers that you would find on Nigerian roads daily, and when you see just a glimpse of these cars, you cannot help but be in awe of them and their aesthetics, but one thing that most people don’t know is that luxury cars depreciate quite quickly, losing their purchase value faster than what is deemed “normal cars.” When you buy a car, like everything else, you want to resell it to get better value for the initial money you spent, whether to buy a new car or just to have the extra money in your pocket. With the increase in car prices, you would expect that the value of your Kia would also rise with it, especially if you want to get more value for the vehicle you bought in the past.

If you buy a car for N3,000,000, you should expect the car’s value to rise to more than N500,000 at least after just a couple of years of use, but this doesn’t usually occur with luxury cars because they depreciate quite easily just after a handful of years of use, and one thing worth noting is that luxury cars aren’t meant for too rigorous travels.

We have written blogs on how you can increase the resale value of your car, which would be very important to whoever plans on selling their old car. 

People shouldn’t have a bias towards luxury cars only because of their looks or expense you should know that if you are planning to buy a luxury car you might not get your money’s worth in a couple of years.  So keep reading about the luxury cars that depreciate very quickly. 

Land Rover Range Rover is one of those cars with high depreciation

Although Range Rovers have a tonne of luxurious features, you can decide that they are not worth the money after taking into account the rate of depreciation, which is linked to the cost of repairs and maintenance. After five years on the road, the value of a brand-new Range Rover will have decreased by around 63%.

So imagine if you buy a car for N40,000,000. If you calculate 63% of that money, you will only be selling your car for N25,000,000. If you’re searching for a new luxury SUV with a high resale value, it would be best to look elsewhere, but settling for a two-year-old Range Rover on the used-car market could save you some money.

The Audi Q7 has high depreciation rates

The seven-seat Audi Q7 is an SUV with a modern interior and cutting-edge comfort and technology amenities. One of the quietest vehicles in its class, you can purchase a brand-new, opulent long-distance cruiser for only N50,000,000. Yet the Q7 suffers greatly from depreciation, particularly in the first five years, during which time it loses around 59% of its resale value.

A brand-new Q7 would be worth less than N30,000,000 just five years after purchase. Additionally, owning an Audi seems like an excellent way to waste money given that you will have to pay up to N440,000 to maintain it throughout that time.

When purchasing a car, you would want to buy one with a high resale value, which would help you if you ever wanted to resell it to buy another car. 

The Mercedes-Benz GLE500 ranks among those with abnormally high depreciation rates

You wouldn’t expect these kinds of cars to depreciate so fast, but according to expert reviews, just after 4 years of use, it has reached 33%, which is very bad. Used car values have remained high for more than a year due to the relative shortage of cars, mostly due to the pandemic. 

The market for huge luxury SUVs has decreased as a result of the push for more fuel-efficient, smaller vehicles. Large luxury SUVs are also not always appealing to buyers because they typically have higher maintenance and insurance costs. And with Mercedes-Benz being one of the most popular cars on the market and most cars in their lineup being SUVs, you would expect depreciation to be high.