Top 10 Luxury Vehicles with the Lowest Resale Value
But First Snide's Remarks: Before you go believing all of these Forbes via Kelley Blue Book residual values, remember which side Kelley’s bread is buttered (See Also: Edmunds.com Explains Kelley Blue Book Pricing)...take some time to accurately and unbiased-ly compare Total Cost of Ownership, have fun! Let me know what you think; email@example.com.
Washington DC July 13, 2007; The AIADA newsletter reported that poor reliability, aging designs and supply that exceeds demand are the main culprits for low resale values.
The 10 luxury vehicles likely to shed the most value over time each have at least one of those qualities.
Forbes magazine has compiled a list of those ten, along with pictures and explanations of their value-losing potential.
The top two value losers on the list are the Lincoln Town Car and Mercury Grand Marquis. Both cars are sold in large numbers to various vehicle fleets, such as limo, taxi and rental agencies, and they use decades-old technology.
Larry Batton, president and founder of Auto Appraisal Group Inc., says that these two cars "are archaic and don't fulfill the requirements of modern buyers." Other cars on this list have a similar issue: Their price is too high for the value they offer.
It's important to note that this list isn't comprised of a bunch of bad cars. Usually they perform well. The question is, how much are you willing to pay for perceived prestige?
Forbes List Of 10 Worst Residual Valued Luxury Cars - Kelley Blue Book Values
10. Cadillac SRX V8 MSRP: $43,870 Residual Value After Five Years: 27 percent* 9. Ford Expedition V8 4WD MSRP: $32,895 Residual Value After Five Years: 27 percent 8. Cadillac DTS V8 MSRP: $41,990 Residual Value After Five Years: 26 percent* 7. Cadillac STS V6 MSRP: $42,765 Residual Value After Five Years: 26 percent* 6. Lincoln MKZ AWD MSRP: $31,765 Residual Value After Five Years: 26 percent* 5. Mercedes-Benz E550 MSRP: $59,775 Residual Value After Five Years: 26 percent* 4. Jaguar S-Type V6 MSRP: $49,000 Residual Value After Five Years: 25 percent* 3. Jaguar X-Type Sedan and Wagon MSRP: 34,995 Residual Value After Five Years: 25 percent 2. Mercury Grand Marquis LS MSRP: $30,320 Residual Value After Five Years: 23 percent* 1. Lincoln Town Car MSRP: $42,985 Residual Value After Five Years: 17 percent* * Residual values are courtesy of Kelley Blue Book and expressed as a percentage of the original MSRP.