Why do luxury cars lose value so quickly?

Cars with a high resale value

A car is expensive. This is the sentence that every new driver receives from his or her parents. And we don't like to tell you, but: Mom and Dad are right about that. In addition to fuel, insurance, parking fees and repairs, there is another major cost factor that has an extremely high impact, especially with new cars. And yet it is often underestimated. The depreciation. In the first year it is an average of 24.2 percent and thereafter grows by around a further 6 percent every year. This makes the loss of value the biggest cost factor in a new car.

How high it actually is, however, depends on a number of factors and differs from model to model. There are cars for which you can quickly only get a fraction of the list price on the used car market and others that keep their value at least relatively stable. Every year the so-called residual value giants are presented in the Schwacke list, i.e. the cars that lose the least amount of value.

 

Is everything relative? Or is it absolutely?

The loss of value can be expressed in two different ways: namely, relative and absolute. The relative value depends on the percentage loss in value within a year, while the absolute value indicates by how many euros the original value has actually shrunk. Percentage residual value giants are predominantly expensive cars, with the absolute ones, however, cheaper models have the edge.

 

The top models with a high resale value

When it comes to the absolute residual value giants, nobody is fooling the Romanian car maker Dacia. While the Dacia Logan leads the compact class, the Duster takes first place in the small SUVs and Lodgy and Sandero are also right at the forefront. As usual, the German car manufacturers can also be seen with high residual values: For example the VW Polo, the Audi A5 Sportback or the Mercedes S 300h.

The list of relative residual value giants includes luxury cars such as the Porsche Boxster, the Mini One and Countryman, the BMW X5 and the Model 3 from Tesla.

 

The Influence of Vehicle Class on Sales

Even if a Fiat 500 is right at the forefront in the subcompact category, how does it look in practice when it really comes to selling? Here supply and demand still determine whether a car can be sold quickly and at the desired price. This works better for some vehicle classes than for others. For example, there are lots of compact and mid-range cars on the used car market. Of course, the large supply depresses the price. Vans like the Seat Alhambra or the Ford Galaxy are extremely practical family cars, but unfortunately they are currently not very popular and are quickly becoming used slow-moving goods. This is annoying for a dealer, but it can really become a problem for private sellers if the old car simply cannot be sold and takes up space in the garage. SUVs and luxury-class cars are particularly popular at the moment.