Buying a brand new vehicle is a big purchase for many people. Often, it is probably the second biggest transaction in their lives after buying a house. The difference between the two is that you might be able to make some money when you sell your house.
Unfortunately, that is rarely the case when it comes to your car. A commonly accepted belief is that brand new vehicles lose their value as soon as you drive them off the lot. Interestingly enough, luxury SUVs lose their value the most while trucks retain their value.
Of course, there are factors like mileage, condition, and reliability that will affect the price of the car. A report from iSeecars.com shows us data collected from 7.7 million new and used car sales. They found that the average 5-year depreciation percentage for cars across the board is roughly 49.6%. Meanwhile, SUVs will lose about 51.6% of their value over five years and the percentage for most trucks is even lower than that.
In this list, we break down the 15 SUVs and trucks with the worst resale value according to the data. When bought new, these cars are massive money pits, while on the other hand, they present some incredible value on the used market!
15 Chevrolet Silverado 1500
The Chevrolet Silverado 1500 will retain its value better than the average car. It loses an average of 42.0% after 5 years. Trucks maintain their value a lot more than sedans and electric vehicles. Their durability, reliability, and utility is a huge factor for why they can keep more of their value than other vehicles. The MSRP for the base model is about $34,395 but will drop by $14,445 in the used car market after 5 years.
14 GMC Sierra 1500
The GMC Sierra is marketed as the luxury version of the Silverado. While both pickups have the same mechanical parts, the Sierra has a higher-end interior along with other upgrades to enhance the look and feel. Of course these extras will come at an expensive price tag. MSRP for brand new GMC Sierra 2020 standard crew cab is about $40,795. The rate of depreciation over 5 years is 43.0%. Which can be a difference of $17,541 when you buy one used.
13 RAM 1500
The RAM 15oo trucks will sell better than most cars in the secondary market. However, in comparison to trucks like the Tacoma, it is considered a high-depreciating truck. According to the data, it will lose an average of 45.2% over 5 years. The lowest end MSRP is $36,840 but you can expect to lose a difference of $16,651 if you decide to sell it.
12 Nissan Titan
The Nissan Titan is a great vehicle but past problems have plagued the badge. Customers on carcomplaints.com report that the #1 complaint with the Titan is rear axle failure. Although that may no longer be the case, many people are wary about buying a used Titan. As a result, you can expect to see a difference of $17,343 over 5 years. Their price will depreciate at 45.9%.
11 Ford F150
The truck that loses the most value is the Ford F150. It will lose 46.9% of its original price over 5 years. The difference of about $16,290 for the lowest trim. A statement from the CEO of iSeeCars.com explains how supply and demand affect the resale price of the F150. Ly states “The Ford F-150 is the best-selling pickup, so it depreciates more than the average truck because there are so many of them in the used car marketplace,”.
10 Infiniti QX80
The cost of a brand new Infiniti QX80 can range from $66,750 on the low end to $91,450 for the Limited trim. The data on iSeeCars reports that the QX80 will lose 63.4% of its value over 5 years. That is a difference of about $42,987 in the used market which is a significant chunk of money. Ly states that “Luxury SUVs tend to have steep depreciation because of their high starting prices, which have to come down significantly to attract buyers in the secondary marketplace,”.
9 BMW X1
BMW brought us a variety of SUVs and crossovers in the package of the X series. There's an option for everyone. The X1 can be considered as a bargain compared to its siblings — X3, X4, X5, X6. Nonetheless, it still has a higher than average depreciation value at 63.4% which equates to a difference of $22,947 over 5 years.
8 Audi Q7
Next on our list is the Audi Q7. Like the BMW, it is another expensive German SUV. If you are in the market for a midsized luxury SUV, this is a great choice. However, if you wait about 5 years you can expect to see it depreciate 63.5%. That is about a $34,636 difference in price.
7 Cadillac Escalade ESV
The Cadillac Escalade ESV is a full-size SUV that has all the bells and whistles. The MSRP for the premium edition will run you about $88,090. If you are looking for a luxury SUV without the expensive price tag, you can probably find it in the used market for significantly less money. The data reports that you can expect it to depreciate at 63.6% which is potentially $56,025 over 5 years
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6 BMW X6
It is not a surprise that you will spot the BMW SUVs and crossovers more than once on the list. Ly states that “The high maintenance and repair costs of German vehicles like BMWs lead to the high depreciation of these vehicles,”. The X6 is bigger and more expensive compared to the other X series models. You can find the lowest trim to average about $65,295 MSRP. If you wait about 5 years, iSeeCars reports that it depreciates at 63.8% which could save you about $41,658.
5 Infiniti QX60
The Infiniti QX60 is smaller than the Qx80 and costs about $20,000 less. However, it has a slightly worse rate of depreciation. You can purchase it brand new for about $45,375 but that price could drop about 63.9% which could save you $28,994.
4 GMC Yukon XL
According to Ly, the GMC Yukon is the only SUV on the list that is not considered a luxury vehicle. Regardless of the label, it still loses its value higher than the average vehicle. Two factors contribute to this. First, the average MSRP for a brand new one is about $66,488. Second, it is often used as a vehicle for driving services like taxis or chauffeurs. Ly noted “The Yukon XL is also a common livery vehicle, so its high mileage likely brings down its price.” It depreciates at 64.4% over 5 years.
3 BMW X3
Although the BMW X3 is in the middle for price and size, it is the third worst SUV at retaining its value. In contrast, the X6 is desirable for its sporty performance and bigger size. While the X1 is the budget X series option that is more compact. Leaving the X3 out in the market and driving down its price. Compared to the other two, it depreciates at 65.1% over 5 years which equals a difference of $29,259.
2 Lincoln Navigator L
The Lincoln Navigator L has the second-worst depreciation rate. It will lose over half of its value after 5 years. According to Ly, this is another commonly used vehicle for livery services which means you will find them in the secondary market with higher than average miles. This significantly brings down their value. They depreciate at 65.7% which is a difference of $56,646.
1 Lincoln MKT
At the top is the Lincoln MKT with the average 5-year depreciation value at 66.1%. Unfortunately, it is not a popular car in the used market because of the way it looks. Ly has this to say about the MKT, “Although it has an abundance of cargo space, the Lincoln MKT has drawn criticism for its styling, so its low resale value is likely due to buyers favoring other vehicles in the highly competitive midsize SUV segment,”. Its average MSRP is $50,495 and over 5 years will drop by $33,337.