Audis employ so much technology, which contributes to their depreciation. Modern luxury vehicles come equipped with a variety of cross-device integration features, screens, software infotainment systems, and power options.
Consider the first-generation iPod charger. Do you still recall the white rectangle that could only go one way? Imagine if the integrated sound and climate control system of your automobile came with one of them hanging from it. Apple CarPlay will eventually stop functioning, and that digital tachometer will appear out-of-date and tacky. And that day is quickly approaching.
The radio cannot simply be pulled out and replaced with a new one. If you own a CD player, you will always have a CD player. Vehicles with sophisticated digital systems are likely to become obsolete quickly given how quickly technology advances. Thus, just to use the things it came with, you need a new automobile every two years.
In This Article...
What is the resale value of Audi vehicles?
In comparison to Audi’s SUVs, tiny cars, and performance vehicles, bigger sedans should lose less of their initial value after five years. The least valuable vehicle in the range, the 2021 A8 plug-in hybrid sedan, is predicted to retain just 34.1% of its worth, while the TT Coupe and Convertible are expected to retain 49.3 and 49%, respectively, of their value after five years. After five years, the average of the full range equals an estimated 45.7% retained value.
Land Rover46.9 Percent Retained Value (after five years)
You can rely on Land Rover to provide SUVs with true all-terrain capabilities, refinement, and flair. They reportedly also resist sharp depreciation. With a predicted resale value of 49.6%, the midsize three-row Discovery from the British manufacturerspecifically, the R-Dynamic P360 model with the turbocharged inline-six powertraindepreciates the least among its 2021 range mates. Range Rovers don’t hold their worth as well, but 469.9% of the value of the Land Rover lineup is anticipated to be retained.
Volvo47.2 Percent Retained Value (after five years)
The retained values of Volvo automobiles and SUVs varied significantly. It is anticipated that no 2021 Volvo sedan or wagon will retain more than 42.5 percent of its initial value after five years, and most will retain less than 40 percent. On the other hand, after five years, every Volvo SUV save the XC40 Recharge EV retains more than 45% of its original value. The XC90, Volvo’s largest and oldest SUV, retains a staggering 50.8 percent of its value when it is powered by the T6 twin-charged inline four-cylinder engine, according to IntelliChoice.
Mercedes-Benz47.2 Percent Retained Value (after five years)
Only a small number of Mercedes’ many models are expected to retain less than 40% of their initial worth after five years. Among the vehicles whose depreciation is anticipated to be the greatest in 2021 are S-Class automobiles, AMG GT 4-Door Coupes, and the Maybach GLS SUV. The German brand, on the other hand, has a large number of entries that retain at least 50% of their initial worth. The GLA, GLB, and GLC SUVs as well as the C63 AMG Coupe and E63 AMG Wagon maintain their value the best. The GLC300 Coupe, which is anticipated to retain 53.3% of its initial value, is the best-performing Benz in terms of resale value after five years.
Lexus53.2 Percent Retained Value (after five years)
Because Lexus shares Toyota’s reputation for dependability, this may contribute to the high value of its cars. In fact, IntelliChoice has recognized the ES300h hybrid midsize sedan, IS350 compact sedan, RC350 coupe, and RX350 midsize SUV as Lexus models with the highest retained values for 2021. Every 2021 Lexus is anticipated to keep at least 48% of its initial value after five years, with the LS500 being the sole exception (which is more than the national average).
Porsche58.0 Percent Retained Value (after five years)
Models like the 2021 911, Cayman/Boxster, Macan, and Cayenne are expected to retain more than 50%, and frequently 60%, of their initial value after five years. The employment of alternative propulsion systems is a feature shared by the Porsche vehicles predicted to lose the most value. The Taycan EV is the 2021 Porsche forecast to have the lowest maintained value: just 46.3 percent. All 2021 Cayenne and Cayenne Coupe E-Hybrids are expected to keep less than 49.6 percent of the initial value. But those automobiles are but a drop in the ocean. Porsche’s resale prices remain high because to the quantity of sturdy gas burners.
Do Audis depreciate quickly?
When people talk about vehicles, they often refer to them as investments, although that term doesn’t really fit the majority of people’s car-buying behaviors. Buying cars that you could profit from or that you could sell for a greater price later on would essentially be required for it to be called an investment. Even though most people think it sounds perfect, the majority of cars on the market are not at all an investment.
The average customer frequently loses thousands of dollars in depreciation from the time they buy their automobile to the time they sell it, whereas car flippers and collectors can boast about their ability to make a profit buying and selling cars. Some people find driving a brand-new car to be such an enjoyable experience that they don’t mind the idea that their car will eventually be worth far less than they paid for it.
However, not all automakers are valued equally, and some are known to depreciate much more quickly or at a quicker pace than others.
Why Cars Depreciate
There are many reasons why cars lose value, some of which are more visible than others. Even if it is a dealership dedicated to that brand, you pay a significant markup when you purchase a car from a dealership. Since you can only purchase brand-new cars from their preferred dealers, they have virtually complete control over the market and can raise prices as high as they believe consumers will pay. It may seem reasonable that car companies and dealers wouldn’t be making any money if there wasn’t some markup on the cost.
The cost of maintenance affects a car’s worth as well, and you’ll notice that cars with many repairs or those with high maintenance expenditures deteriorate more quickly than others. The number of miles you drive a car symbolizes how much damage the engine and body have endured, even if you might not think about it every day. As your vehicle’s mileage increases, you will need to consider both routine maintenance, such as oil changes, new tires, and other necessary checkups, as well as the possibility of severe repairs.
Nissan and Honda vehicles are simple to work on because components are readily available and the vehicles’ systems aren’t very complex. When you purchase a brand-new car, you don’t anticipate any significant problems. Additionally, you are often covered by a year and mileage guarantee, which gives you some peace of mind in the event that something goes wrong and you don’t want to have to pay everything out of yourself. However, purchasing a used automobile usually means that the vehicle is no longer covered by a guarantee and that you must rely on the previous owner to have taken good care of it and kept up with the recommended maintenance plan.
What Car Brands Depreciate The Most
Luxury automobiles and luxury sports cars typically carry a higher price tag and lose value as soon as you leave the dealership lot. They require the most expensive repairs frequently, have a negative reputation for being unreliable, or have the highest upkeep expenditures. These are the car brands on the consumer market that lose value the quickest in any combination.
In the first five years of ownership, almost every BMW is guaranteed to lose more than half of its value. They are infamous for being unreliable, and even more well-known versions like the 328i have a history of costly or even disastrous breakdowns.
Next on our list is Audi, which shouldn’t come as a surprise given that they are a direct rival of BMW. Audi has more issues with excessive dealership markups than it does with reliability. A few years later, a car like the Audi A7 would cost less than a brand-new Toyota Camry instead of close to $90,000.
Mercedes is a luxury brand that even dealers say you are better off leasing. It says a lot that most drivers choose to just lease the automobile given that leasing means you lose practically all of the money you invested in the vehicle, similar to renting an apartment. That’s because Mercedes-Benz loses value extraordinarily quickly, much like BMW and Audi do.
Companies like BMW, Audi, and Mercedes are the “cool kids” of the automotive industry, setting trends by continuously enhancing their technology, performance, and driving experience. This is a significant factor in the fact that you can purchase used, already depreciated automobiles and still get a lot of the technology and features that new, entry-level cars are only just beginning to incorporate. This means that if you’re considering an Audi or a BMW as your next vehicle, choosing a used one will save you money on depreciation.
An Audi A4 will depreciate 31% after 5 years and have a 5 year resale value of $32,819.
If you buy a new Audi A4, you will lose around half of your money within five years. However, as many come off lease, you can get some great prices on models that are two or three years old. The A4 is a rather dependable vehicle, so let someone else purchase it new so you can purchase it three years later for 37 percent less while it may still be covered by warranty.
The anticipated depreciation over the following ten years is shown in the figure below. These outcomes apply to cars that travel 12,000 miles annually on average and are in good condition. Additionally, it counts on a new-car selling price of $47,427. Enter the purchase price, anticipated length of ownership, and yearly mileage estimate. We can estimate the Audi A4’s anticipated resale value using our depreciation calculator.
Share
Audi or BMW, which keeps its value better?
German automobiles have always been a favorite among South Africans who view them as luxurious, aspirational vehicles with exceptional craftsmanship.
The three most well-known German automakersBMW, Mercedes-Benz, and Audiproduce luxury vehicles that have an upscale appearance, wonderful engines, exquisitely designed interiors, and good safety systems.
which is all fine and good. The greatest and worst brands in terms of resale value, though? This question’s surprising answer can aid a driver in making a decision about their next German luxury car.
According to Darryl Jacobson, managing director of True Price, BMW automobiles have the lowest resale value, Mercedes-Benz vehicles are the best, and Audi vehicles fall right in the middle of the two main German automakers in terms of resale value.
His conclusions are supported by an examination of True Price data. The True Price crew goes to hundreds of bank repossession auctions year in order to give drivers honest (and free) vehicle evaluations. The True Price database has the actual prices paid on thousands of individual automobile auctions since they record each and every price paid at auction.
The data has been examined by Jacobson. The actual amount paid at auction was then computed as a percentage of the original list price. He claims that when it comes to resale prices, Mercedes-Benz is by far the winner.
In this experiment, the entire vehicle park was utilized. “We did not restrict our investigation to certain models or body types. He says, “We compared our entire BMW database, our entire Audi database, and our full Mercedes-Benz database.”
Mercedes-Benz truly outshines the opposition at a discount of 70.10 percent off the original retail price. Jacobson claims that the success of the three-pointed star did not surprise him. “Everyone likes a Mercedes-Benz, young and old. I firmly believe that Mercedes-Benz vehicles will continue to hold their value for the foreseeable future. The corporation has done an amazingly wonderful job of keeping its product line relevant and alluring to a wide audience, he notes, so it has been exciting to watch younger purchasers enthusiastically bidding on Mercedes-Benz vehicles in the past ten years.
At 62.49 percent of the original list price, Audi came in second. Jacobson says, “We see a lot of bidding on Audi vehicles on auctions. ” Many young professionals use it as their primary mode of transportation. Families also like it since they say the cars are roomy and comfy and have good after-sale service from the dealer network. On auction, an Audi is considered to be a “safe bet.” Dealers are also aware that moving the automobile should be quite simple (although, it must be said, not quite as easily as a Mercedes-Benz).
BMW had the worst resale value among the German trio, placing third with 58.65 percent.
Undoubtedly, this will shock a lot of devoted BMW enthusiasts. But it does make some sense in some ways. Even if BMW vehicles continue to be well-liked at auction, they appear to have lost their appeal in terms of exclusivity, desirability, and the bragging rights that come with owning one of these cars. Fair enough, the 3 Series is still in high demand. The 7 Series has always been difficult to resell at high prices, and the 5 Series isn’t quite as desirable. Additionally, according to Jacobson, customers believe that the X derivativesparticularly the X3 and X5are excessively pricey.
Resale value need to be one of the top considerations before buying any vehicle, according to Jacobson. “Most cars and trucks are depreciating assets. A historic or collector’s car is the one exception to this rule. A car’s value decreases the longer you own it. In actuality, the main expense associated with owning a car is depreciation. It is significantly more important than, say, the cost of servicing and maintenance. Jacobson notes that while choosing a vehicle, some customers disregard this crucial part of automotive ownership.
Neglecting vehicle resale values can have serious repercussions. “When the time comes to sell, you will receive a significantly lesser trade-in price. That much should be clear. However, keep in mind that the vehicle could possibly be stolen or declared a total loss. Resale value is a key factor in the market-related value that your insurers will give you! Noted by Jacobson.
According to Jacobson’s analysis of the results of the True Price study, purchasing a Mercedes-Benz is a sure bet. According to our research, it would be wise to get a German vehicle bearing the three-pointed star if you’re looking to acquire one. The risk of the vehicle deteriorating too much will be minimized, he says.