Vehicles with the most expensive MSRP when new typically depreciate the fastest. The sale prices start so high that there’s nowhere to go but down. So, it probably shouldn’t come as a surprise that SUVs and luxury cars have the highest depreciation rates over a 5-year span. These cars start out being priced high and can do nothing but go down.
While this is excellent news for the buyer who buys one used, it is devastating for the seller who bought it new. We’ve compiled for you the 10 SUVs that depreciate the fastest in 2023 not only to help new car buyers avoid them but to let used car buyers know where to find a bargain.
We’ve separated the SUVs on this list by their size and their corresponding 5-year depreciation rate.
1. Infiniti QX80 — 52.6%
Leading the list of SUVs with the worst resale value is the Infiniti QX80. This vehicle has an ample amount of storage and towing, making it perfect for family travels. Sadly, not too many people are after it.
The result is a 52.6% plummet in its value after 5 years. If you bought yours for $77,000, be ready to sell it in the region of $36,500. With the average SUV depreciation being 44.1%, this is way above the mark.
2. Cadillac Escalade — 52.3%
Closely behind the QX80 is the Cadillac Escalade. It’s hot, it’s luxurious, and its storage space is enormous — all reasons why it’s crazy to think that after five years, you can drive this beast for only half its price.
The Escalade is among the best-selling SUVs. That means the market isn’t scarce and it’s fairly easy to find a used one. As a seller, the earlier you get rid of your Cadillac Escalade, the more you’ll fetch for it.
3. Lincoln Navigator L — 51.9%
The Lincoln Navigator has a less than stellar reliability record, so the luxury features – and the fact that they can break anytime – ends up being more of a liability than an asset.
Because of this, the Navigator L has one of the worst large SUV resale values. On average, it will lose around $45,000 of its value after 5 years.
4. Nissan Pathfinder — 44.9%
The Nissan Pathfinder is an attractive package with good fuel economy, a family-friendly interior, and balanced driving dynamics. Surprisingly, it also leads the way with the worst midsize SUV resale value. This may be attributed to its dated “infotainment” system in the older model and the fact that a new body style just came out.
Judging from its SUV depreciation chart, you’ll not be the happiest seller after five years. You’ll only get back 55.1% of what you paid for it.
5. Hyundai Santa Fe — 44.8%
We appreciate the generous driving range and agile handling of the Hyundai Santa Fe, but it’s competitors just do a better job of engineering a mid-size SUV.
23 years since its production, and the Santa Fe doesn’t seem to have made such a massive impact. It will lose almost 45% of its original value 5 years after purchasing it.
6. Chevrolet Traverse — 44.2%
In an attempt to make up for its poor agility in handling, the Chevy Traverse offers a smooth ride and a spacious interior. But not even all these are enough to save it from the woes of depreciation.
Unfortunately, it is among the midsize SUVs with the worst resale value, just slightly better than the Santa Fe.
7. Ford Edge — 43.2%
The Ford Edge has faced a lot of criticism for its outdated interior, poor reliability, and cramped rear seats. Even with its multiple engine options, it seems that most buyers aren’t impressed with the SUV.
As a result, the Ford Edge faces a 43.2% 5-year depreciation rate. It’s not a good place to be, but it is still better than a handful of other midsize SUVs within its price range.
8. Volkswagen Tiguan — 42.1%
Admittedly, the Volkswagen Tiguan is much more fun to drive than many of its rivals. But the cost of repairing and maintaining it is on the higher side, making the resale value suffer a bit.
With a depreciation rate of 42.1%, the Tiguan has the worst small SUV depreciation rate. If you purchased a new Tiguan for $30,000, it would only be worth around $17,000 after 5 years. Maybe it’s not that fun after all.
9. GMC Terrain — 39.9%
GM announced that the 2024 GMC Terrain would be the final model of the 2nd generation crossover. The company seems to be preparing for the upcoming third and fourth models. As a result, the GMC Terrain’s depreciation hit 39.9%
The Terrain doesn’t have the best reputation for reliability, with only a 35 rating — the average being 57. With everyone looking forward to the next models, the Terrain is rapidly losing its popularity and resale value.
10. Chevrolet Equinox — 39.5%
The Chevy Equinox is thoughtfully designed and is pretty good looking. On top of that, it is considered one of the most reliable small SUVs. However, a bland interior and underpowered engine make it trail the competition.
If you are not looking to hold on to the Chevrolet Equinox for a long period, then you shouldn’t be looking at a new one. You’ll only be able to sell it for 59.5% of what you bought it for.
In summary, some SUV models are more of a pain than others when it comes to depreciation. The truth of the matter is that you will lose a chunk of money on any vehicle that you bought new. But if you’re a used car buyer, this is an excellent opportunity to grab a luxurious SUV that you normally would not buy new.
When you’re ready to sell your used SUV and get the most money for it, make sure you first get a guaranteed cash offer with Motobyo’s cash offer tool. You’ll then be prepared to get the right price and minimize your depreciation loss.