5 Popular cars that depreciate much worse than you think

Buying a car is rarely a good investment. In fact, for most Americans, vehicles are one of the most significant ongoing expenses after housing. Unlike real estate, cars start losing value the moment you drive them off the lot. Just rolling out of the dealership can wipe off 10% or more of a car’s value in minutes.

But not all cars depreciate at the same rate. Just as with everything else, the price is driven by supply and demand. And yes, some rare cars can even increase their value over the years, but this is not valid for these five cars.

Why do cars lose so much value

On average, a new vehicle in the U.S. depreciates 30% of its value in the first 2 years alone, and approximately 55% over five years. For some models, especially luxury or electric cars, that number can rise significantly.

Why does this happen? It’s a mix of economics, perception, and evolving technologies. The moment a car is titled and insured, it becomes “used,” no matter how new it still feels. And buyers on the used market are quick to calculate risks: Has the warranty expired? Are repair costs looming? Is a newer, better version already out?

Then there’s the tech factor. In today’s market, software and battery improvements are outpacing traditional product cycles. Especially in the EV world, what was cutting-edge two years ago can already feel outdated. Add concerns about battery degradation and limited range, and even a well-maintained electric vehicle can lose value quickly.

Models known for mechanical issues, poor fuel economy, or outdated interiors become harder to resell. Others are victims of overproduction, with an excessive number of units flooding the used market.

In short, cars depreciate because the market is constantly changing. Warranties expire, tech evolves, competition grows, and buyers demand more. The trick is knowing which cars lose their value fastest and making sure you’re not the one left holding the bill.

1. Jaguar I‑PACE

MSRP (circa 2019–2020): Around $70,500 for base EV400 S; up to $86,900 for full spec. models.

Average Current Used Price (2025): Roughly $19,000, about 73% depreciation at five years.

When Jaguar launched its first all-electric model, the I‑PACE, it was a car you’d expect from a performance-focused British marque. With nearly 400 horsepower, standard all-wheel drive, and a low center of gravity, the I‑PACE was meant to prove that EVs could be luxurious and sophisticated all at once. The interior, finished in high-end materials with Jaguar’s signature design touches, felt genuinely premium. Add in features like adaptive air suspension, a panoramic glass roof, the I‑PACE appeared to be a true Tesla rival.

But today, the I‑PACE has one of the steepest depreciation curves in the U.S. used car market, and it’s not just about the competition. For all its ambition, the I-PACE had several issues that became more evident over time. Early software glitches, a finicky infotainment system, and real-world range that often fell short of its EPA estimate made some owners lose confidence. Jaguar’s limited U.S. service network made ownership frustrating for anyone not living near a major city. At the same time, the broader EV segment rushed forward. Alternatives like the Tesla Model Y and BMW iX, both of which offer longer range, faster charging, and better tech integration.

Battery anxiety also played a role. Although Jaguar provided an 8-year battery warranty, concerns about long-term performance persisted, particularly given the I-PACE’s slower charging speeds and the lack of significant updates throughout its product cycle. The I‑PACE still drives beautifully and looks fantastic, but in 2025, it’s a bargain only because the market left it behind.

2. Nissan Leaf SV Plus

MSRP (circa 2020): About $35,000 for SV trim.

Average Used resell value (2025): Roughly $9,781, a 72% depreciation in five years.

The Nissan Leaf SV Plus was once seen as a practical and approachable entry into the world of electric vehicles. With its decent all-electric range (up to 226 miles) and affordable price point, it has become a favorite among city drivers and commuters. The SV Plus trim introduced useful upgrades, including a larger battery, ProPILOT Assist for semi-autonomous driving, and a reasonably equipped interior.

But in 2025, the used market hasn’t been kind to the Leaf, especially older SV Plus models. Much of that has to do with the rapid evolution of the EV landscape. What was considered a good range in 2020 now feels mediocre at best.

Competing models, such as the Hyundai Ioniq 5 and Tesla Model 3, have begun offering more advanced battery technology, faster charging speeds, and improved range. Adding to the Leaf’s resale woes is its reliance on CHAdeMO fast charging, a now-obsolete standard that’s nearly phased out in the U.S., severely limiting rapid charging options. Even with low operating costs and a decent reliability record, the Leaf SV Plus couldn’t keep pace with the next generation of electric cars, resulting in one of the steepest resale declines in the market.

3. Infiniti QX80

MSRP in 2021: Around $73,000 for base Luxe trim

Average Used Price in 2025: Approximately $27,000 with a total depreciation of around 63% in less than five years.

The Infiniti QX80 was once a flagship of full-size luxury SUVs, built to rival the likes of the Cadillac Escalade and Lexus LX. It came equipped with features such as a powerful 5.6L V8 engine, spacious three-row seating, and upscale materials. A premium SUV with bold styling and towing capabilities, the QX80 offered plenty to love.

But despite its high price tag when new, the QX80’s resale value has dropped sharply. Several factors contributed to this plunge. First, the QX80’s fuel economy is among the worst in its class, making it a tough sell. Second, Infiniti’s brand prestige has weakened, and the model hasn’t seen major technological updates in years. Buyers seeking advanced driver assistance features, modern infotainment systems, or hybrid options often find better value elsewhere. The QX80 is still a capable and comfortable SUV, but the used market treats it as a dated option in a segment filled with fresher, more fuel-efficient rivals.

4. BMW 7‑Series

MSRP in 2020: Approximately $87,000 (base 740i)

Average Used Price by 2025: Around $34,000 with depreciation of around 60% in five years.

The BMW 7-Series represented the pinnacle of German sedan luxury, featuring luxurious rear seating, advanced suspension, powerful turbocharged engines, and innovative features such as Gesture Control and laser headlights. With its quiet, refined ride and prestige, it was meant to be the flagship executive car for business elites and chauffeurs alike.

Yet by year five, the 7‑Series plummets in resale value more than most of its peers. Buyers on the second-hand market often encounter high service and insurance costs, outdated infotainment systems, and reports of expensive component failures, such as air suspension and electronic modules. Furthermore, demand for large luxury sedans is declining as consumers shift to SUVs. For those reasons, even a moderately used 7‑Series can end up listed in the low-to-mid $30,000.

5. Tesla Model S

MSRP in 2020: Around $76,000

Average Used Price in 2025: Approximately $32,000 with a 58% depreciation after five years.

When it launched, the Tesla Model S redefined what an electric car could be. It has blistering acceleration, cutting-edge design, and one of the longest driving ranges in the industry. It stood as a status symbol for tech-forward luxury buyers. Even five years ago, the Model S offered features that most rivals hadn’t caught up to: over-the-air software updates, a minimalist interior with a giant touchscreen, access to Tesla’s exclusive Supercharger network, and many more.

So why has its resale value dropped so dramatically?

Tesla’s aggressive price cuts on new models have repeatedly reset market expectations. When a brand-new Model S gets a sudden $10,000 price drop, used versions instantly look overpriced. Then, battery and tech concerns weigh heavily on the used market. Although Teslas are known for strong performance, out-of-warranty repairs can be expensive and time-consuming, often requiring visits to Tesla-only service centers. Lastly, competition has caught up. In 2020, the Model S had few true rivals; by 2025, luxury EVs from Mercedes-Benz, BMW, and Porsche will offer similar or better features, along with fresher interiors, new designs, and improved build quality.

Despite all this, the Model S remains a technological milestone and can still be a great used buy, if you know what you’re getting into. But for those who purchased it new, the resale reality is harsh.