Luxury Cars With The Lowest Depreciation

In 2023, several luxury car models stand out for their ability to retain value over time. These vehicles offer a unique combination of performance, style, and prestige without losing too much merit over the time of ownership, making them appealing options to enjoy luxury benefits without driving the value out of them. Whether they be premium compact sedans or fashionable SUVs, these refined vehicles have been known to fair well when it’s time to sell. This article will explore a few cars worth considering if you’re looking to purchase your first or even your next luxury car that dodges depreciation well.

Updated January 24, 2024: Depreciation hurts. It’s always painful to accept how much less our vehicles cost just a few years after the day we purchased them. We always want to maximize what we get for our cars when it’s finally time to trade up. With that in mind, we have added six more cars to this list that hold on to their value well against depreciation.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources, including Kelley Blue Book, and Car and Driver. This list has been arranged from the car with the greatest to least residual values over a five-year period, obtained from CarEdge.

10 Porsche 911

5-Year Residual Value: 85% (Car Edge)

The Porsche 911 is a legendary sports car that has stood the test of time. With a starting price of $107,550, this rear-engined marvel offers an exhilarating driving experience. It packs a 3.0-liter twin-turbo flat-six cylinder engine delivering impressive power across its various models.

The base Carrera generates 379 horsepower, while the S and GTS models produce 443 and 473 horsepower, respectively. The coupe and convertible come with rear-wheel drive or all-wheel drive, while the Targa only comes as the latter for those seeking enhanced performance and all-weather capabilities.

Performance Specifications

(Data was collected from Porsche)

The interior of the 911 exudes sophistication, with a mix of modern switchgear and a driver-focused layout. The infotainment system features a reasonable display with various connectivity options and is packed with driver assistance and comfort features. The 911, in any configuration, is the complete sports car package.

The Porsche 911 is estimated to depreciate only 15-percent after five years. This demonstrates its strong value retention and reflects its status as a timeless icon in the automotive world.

Pros

• Wide range of models
• Unmatched driving dynamics
• Reliable and excellent build quality

Cons

• Expensive sticker price
• Costly options

9 Mercedes-Benz G-Class

5-Year Residual Value: 77%

The Mercedes-Benz G-Class is a luxury SUV that seamlessly blends opulence with ruggedness. With a starting price of $180,150, the G63 AMG offers impresssive off-road capabilities and is powered by a potent twin-turbocharged 4.0-liter V-8 engine that generates 577 horsepower and 627 pound-feet of torque.

Equipped with a nine-speed automatic gearbox and all-wheel drive, the Mercedes SUV can conquer steep dirt grades effortlessly. In the AMG version, specific suspension tuning ensures improved ride comfort compared to the previous G-wagen models.

Performance Specifications

(Data was collected from Mercedes-Benz)

Despite the SUV’s rugged exterior, the interior offers ample head and legroom for front and rear passengers. The cabin features a modern design with leather along with other high-end materials. It is also laded with all the features expected of a Mercedes.

The G-Class is estimated to lose just 23-percent of its value after five years. It combines luxury, capability, and brand recognition to maintain its substantial resale value.

Pros

• Opulent interior
• Rugged construction
• Capable off-road

Cons

• Truck-like driving experience
• No major updates from introduction

8 Lexus ES350

5-Year Residual Value: 73%

The ES350 is a mid-size luxury sedan by Lexus, a brand that is known to bring comfort and luxury at a reasonable cost. Starting at $43,190 for its gasoline-powered model, it offers indulgence, style, and reliability at a fraction of the price of its mid-size luxury contemporaries.

Although the ES has existed for a while on its current platform, its solid reputation for a no-frills luxury sedan is still evident. Its 3.5-liter naturally-aspirated V-6 in particular, is known to be a bulletproof engine that produces a decent 302 horsepower.

Performance Specifications

(Data was collected from Lexus)

Inside, the ES350 provides spacious accommodation, comfortable seats, and a quiet cabin. In terms of entertainment, it comes with an 8-inch screen or an optional 12.3-inch display with all the latest connectivity choices. The Lexus signature Mark Levinson sound system is also an option.

Remarkably, the Lexus ES350 is estimated to depreciate only 27 percent of its MSRP over five years, demonstrating its robust value retention convincingly.

Pros

• Value for money
• Solid reliability
• Updated infotainment

Cons

• Aged platform
• Non-folding rear seats
• Dated styling

7 Lexus IS

5-Year Residual Value: 71%

The Lexus IS is a premium sedan that promises to deliver an enjoyable driving experience with a reputation for reliability. This vehicle, starting at $41,235 has three engine options. A 241 horsepower turbocharged four-cylinder, a 311 horsepower V-6, and a new 471 horsepower V-8 in the IS500 F Sport model.

Opting for the V-6 unlocks the performance-oriented F Sport package. The rear-wheel drive IS350 F Sport models accelerate from 0-to-60 MPH in 5.6 seconds, while the V-8-powered IS500 achieves it in an impressive 4.4 seconds.

Performance Specifications

(Data was collected from Lexus)

Inside the cabin, the IS offers a premium experience with power front seats, dual-zone climate control, and upscale materials. Although it may not be as spacious as Lexus’ flagship LS sedan, it still provides ample comfort for passengers.

The Lexus IS, even in lesser trims, is estimated to depreciate only 29-percent in five years. Its reputation for reliability and a premium experience contribute to its robust value retention.

Pros

• Toyota reliability with European luxury
• Mechanical simplicity
• New trim levels

Cons

• Tight rear seat
• Aging styling

6 Acura RDX

5-Year Residual Value: 67%

The Acura RDX is a compact luxury SUV that competes against the likes of the Mercedes GLC and BMW X3. At an entry price of $44,350, the RDX merges clever practicality and luxury in a sporty package.

It is powered by a turbocharged 2.0-liter four-cylinder that produces 272 horsepower and can accelerate from 0-to-60 MPH in a respectable 6.2 seconds. The engine is matched to a ten-speed automatic transmission and all-wheel drive ensuring all-weather capabiility in the mid-size Acura SUV.

Performance Specifications

(Data was collected from Car and Driver)

Although the RDX isn’t as luxurious as its opponents in the segment, it is well-equipped with tech and features proven by the numerous buttons on its dash, ambient lighting and even power-adjustable and heated seats. It comes standard with a 10.2-inch touchscreen with all the phone connectivity choices and a 12-speaker premium sound system is optional.

The expected depreciation of the Acura RDX is only 33-percent over the span of five years. This figure speaks volumes about the bargain-basement package that the RDX affords its owners.

Pros

• Extensive standard equipment
• All-wheel drive is now standard for 2024
• Pleasing to drive

Cons

• Transmission isn’t the best
• Not quite luxurious interior

5 BMW 3 Series

5-Year Residual Value: 63%

The 3 Series BMW is a luxury compact sedan that has been the gold standard for its segment for decades. With a starting price of $44,500 for the 330i, the base model makes a healthy 255 horsepower from a turbocharged four-cylinder and 382 and 473 horsepower in the M340i and M3 respectively, from a 3.0-liter turbocharged six-cylinder. While the M340i and M3 have quite the performance, the 330i accelerates from 0-to-60 in a respectable 5.6 seconds as a rear-wheel drive and 5.4 seconds in all-wheel drive.

Performance Specifications

(Data was collected from BMW)

Inside, the BMW shows it is a true luxury car despite its compact packaging. The materials are upscale, its seats are supportive and its cabin is quite spacious. The 3 Series is also loaded with relevant tech and features.

The BMW 3 Series is expected to depreciate around 37-percent in the span of five years. This is evidence of the compact sedan’s popularity and build quality, and is equally proof of BMW’s stellar brand recognition.

Pros

• Powerful engines
• Nimble handling
• Luxurious cabin

Cons

• No significant updates for the new model year
• Lacks standard features in lower models

4 Audi S5

5-Year Residual Value: 63%

The Audi S5 is a luxury sport hatchback that still delivers. Starting at $56,800, the Audi is a confidence-inspiring performer will all-wheel drive as standard and a hefty 346 horsepower from its turbocharged V-6 engine.

Based on the S5 Coupe, the Sportback offers a blend the coupe body style with the practicality of a sedan. Although Audi has not updated their mid–size four-door significantly, the S5’s performance is still relevant against the competition in its segment, accelerating from 0-to-60 MPH in just 4.5 seconds.

Performance Specifications

(Data was collected from Audi)

The interior of the S5 is spacious even with its coupe-style body. High-end materials and superb build-quality are also evident inside this Audi. Like the rest in its segment, the S5 is loaded with various safety and driver-assist features as well as top-notch 10.1-inch infotainment screen.

This luxury four-door is estimated to lose only 37-percent of its value within five years. Its well-rounded and capable qualities undoubtedly contributes to maintaining its high resale value.

Pros

• Handsome styling and body shape
• Standard all-wheel drive
• Strong engine

Cons

• No big updates in several years
• Insufficient interior storage
• Typical numb Audi driving experience

3 BMW 2 Series

5-Year Residual Value: 62%

If you’re looking for power in a compact package, the 2023 BMW M2 is an excellent choice. Priced at $63,195, this sports coupe delivers an exhilarating driving experience. It is equipped with a twin-turbocharged 3.0-liter inline-six that generates an impressive 453 horsepower and 406 pound-feet of torque. The M2 is available with either a six-speed manual or eight-speed automatic transmission that offers remarkable acceleration.

Performance Specifications

(Data was collected from BMW)

With the optional eiht-speed automatic transmission, the M2 is estimated to reach 60 MPH in just 3.9 seconds. This performance is complimented by its athletic yet refined road manners. Its suspension and additional chassis enhancements ensure excellent handling, setting it apart from the others in its class.

Regarding depreciation, the BMW M2 is estimated to lose just 31 percent of its value after five years. This demonstrates its ability to retain its worth over time, making it an appealing option for those concerned about long-term value.

Pros

• Powerful engine
• Well-balanced chassis
• Manual transmission is standard

Cons

• Subpar fuel economy
• Tight back seat
• Controversial styling

2 Volvo XC60

5-Year Residual Value: 57%

The Volvo XC60 is Volvo’s mid-size luxury SUV that employs the signature Scandinavian design simplicity. Starting at just $46,900, the XC60 offers quite a lot for the money. Known for their modern minimalist interiors, Volvo applied the same treatment in the XC60 with impressive interior packages. Tech is also a Volvo strong suit, and it holds with their mid-size SUV, loaded with top-of-the-line tech and driver-assist features that make it a pleasant place to be.

Performance Specifications

(Data was collected from Volvo and Edmunds)

Power of the XC60 is produced by two powertrain combinations. The base B5 trim makes 247 horsepower, while the T8 Recharge is capable of 455 horsepower care of an additional supercharger and an electric motor that gets it to 60 MPH in just 4.5 seconds. Standard all-wheel drive is also a plus in the upscale XC60.

The Volvo XC60 is expected to depreciate 43 percent in the first five years of its life, which is remarkable when considering the market is saturated with SUVs that have become the vehicle of choice for many.

Pros

• Elegant styling
• Stylish interior choices
• Standard all-wheel drive

Cons

• Infotainment is cumbersome
• Small cargo space
• Slightly aging vehicle

1 Porsche Panamera

5-Year Residual Value: 54%

If you need more practicality but don’t want to sacrifice performance, the Porsche Panamera should be one of the luxury cars on your list. Starting from $92,400 for the base model with 325 horsepower and rear-wheel drive, all the way to $206,000 for the 690 horsepower Turbo S E-Hybrid version that accelerates from 0-to-60 in just 3.1 seconds. The capable and sporty four-door Porsche offers a wide range of versions for its standard fastback or hatchback body styles.

Performance Specifications

(Data was collected from Porsche)

Inside, the cabin is just as luxurious as the others in its segment from Mercedes, BMW and Audi. The Panamera provides awell-appointed interior with leather-trimmed seats, top-notch tech, all treated with high-end materials with a long list of options and configurations.

In five years, the Porsche Panamera is expected to lose only 46-percent of its value. This demonstrates that a carefully chosen luxury car can save you a significant amount of money and speaks volumes about Porsche’s unfappable popularity.

Pros

• Practical Porsche 911
• Wide range of configurations and options
• Luxurious and well-designed interior

Cons

• Pricey options
• Expensive MSRP