Which luxury cars hold their value best? [Infographic]

For most of us, cars the most expensive toys we have as adults. 

The problem is that from a financial point of view, they’re not the best asset to purchase, since the moment you pick up a new car from the dealership they’re going to lose value fast. vintage-car-happy-life-motivation-fun-old-retro

However, for the last 30 years I’ve allowed myself the luxury of owning nice cars – I enjoy my cars and recognise they are an expense, not an asset.

Some statistics on how quickly cars lose their value:

  • Depreciation – is the highest single cost involved in owning a car.
  • Nearly half of all new-car buyers will tear up at least $20,000 in the first four years of ownership, a Drive.com.au depreciation survey reveals.

Resale by vehicle type

Category Average resale value after 4 years
Small cars 50%
Sports cars 48%
Luxury 4WDs 47%
Large 4WDs 45%
Light cars 45%
Compact 4WDs 44%
Luxury cars 44%
People-movers 43%
Prestige cars 43%
Medium 4WDs 42%
Medium cars 41%
Large cars 34%
Market average 44%

Source: Glass’s Guide

Absolute Reg, a British site produced this interesting infographic showing which luxury cars hold their values the best

Now you can see how the other half spend (lose) their money.

Which Cars Hold Their Value

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About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


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