Luxury cars look sleek, offer maximum comfort, and — except when it comes time to resell them, that is. For the well-to-do, this may be neither here nor there. But for those looking to recoup their investment, certain luxury cars spell trouble.
“The majority of the reasons these cars are on the list is because they lose almost 50% of their value within 5 years,” stated Jamie Mitri, manager at . “Jokingly, car manufacturers will tell you that the second you drive these cars off of the dealer lot, you are throwing money out of the car window.” So why such steep depreciation? Experts break down these factors into three main causes: technological obsolescence (flashier, more innovative models result in current models swiftly becoming outdated), exclusivity (the difficulty of re-selling costly, limited production models due to the smaller pool of buyers) and brand reputation and reliability (a history of quality issues and expensive repairs).
GOBankingRates spoke further with Mitri, as well as founder and owner at , Tomer Ruderman, automotive consultant and CFEI at , Gretchen Seidel, auto expert and mechanic at , Chris Pyle, and owner at , Mark Beneke, to uncover more While the opportunity to ride like a mob boss could seem enticing, “the high maintenance and low reliability rankings make [Range Rovers] less appealing to second-hand buyers,” stated Tomer. Specifically lowering the Range Rovers’ resale value? Their frequent need for repairs to the engine, electrical.