Used car prices have hit record highs during the pandemic and some vehicles have held their value quite well. But others have seen much greater depreciation, and in the DC area, the used vehicles with the largest decrease from original list price are all very good vehicles.
Used car price comparison site iSeeCars.com compared the three-year and five-year depreciation rates of used vehicles currently selling in the DC market, and topping the list with the highest depreciation is the BMW. Luxury 7 series. A 2017 7 Series is worth an average of 51.2% less than its new list price.
A 2017 7-Series had a list price starting at around $83,000 (although options and trims led some 7-Series models to exceed $100,000), which means it would now sell for $41,000 or less, depending on mileage and condition. A five year old BMW would still qualify for an extended warranty.
Infiniti QX80, Cadillac Escalade ESV and a Mercedes S-Class lost half their value in five years.
“I think it’s because the people who buy these vehicles have a lot of money, and when the vehicle gets old they just want a new luxury car. So they just don’t hold their value in the used car market,” said Karl Brauer, executive analyst at iSeeCars.com.
At the other end of the depreciation scale, some vehicles have held their value incredibly well. A Jeep Wrangler Unlimited tops the list with a five-year depreciation rate in the DC market of just 9.9%. A three-year-old Wrangler actually sells for an average of 1.3% more than a new model, according to data from iSeeCars.
“It is iconic. He never looked so different than he did when he came out. So the old ones just don’t look old. I think people love those cars. They hold up very well from an iconic and stylistic standpoint, so they hold their value,” Brauer said.