6 Shocking Cars That Lose 50% of Their Value the Second Year
Buying a new car is exciting, but the financial impact of that decision can be shocking. Many vehicles lose value quickly, and some models are especially notorious for rapid depreciation. If you’re considering a new car, understanding which models are among the cars that lose 50% of their value in the second year could save you thousands. Depreciation affects your net worth and influences how much you’ll get back if you sell or trade in. Knowing which cars are risky bets can help you make smarter financial choices with your vehicle purchase. Let’s look at six cars that drop in value fast—so you can avoid a costly surprise.
1. BMW 7 Series
The BMW 7 Series is a luxury sedan packed with technology and comfort, but it’s also one of the cars that lose 50% of their value in the second year. While it’s tempting to own a flagship BMW, the high initial price and expensive maintenance can scare off used buyers. Leasing companies and dealerships flood the market with off-lease models, further driving prices down. If you’re paying full price for a new 7 Series, expect your investment to shrink quickly.
2. Mercedes-Benz S-Class
The Mercedes-Benz S-Class sets the standard for luxury, but it’s often a poor choice for those concerned about resale value. Within just two years, it’s not uncommon for this car to lose half its original price. Luxury buyers often want the latest technology and features, so older models quickly drop in demand. The S-Class’s high repair costs and complex electronics also contribute to its steep depreciation curve, making it one of the cars that lose 50% of their value in the second year.
3. Jaguar XF
The Jaguar XF is renowned for its sleek design and British charm, but it’s also notorious for depreciating rapidly in value. Reliability concerns and a limited dealer network can make buyers hesitant in the secondhand market. The XF’s luxury status means a high sticker price, but just a year or two down the road, resale prices often fall by half. If you’re thinking about a Jaguar, looking at certified pre-owned options might be smarter than buying new.
4. Cadillac CT6
The Cadillac CT6 was designed to compete with European luxury sedans, but it hasn’t held its value well. It’s among the cars that lose 50% of their value in the second year, mainly due to limited brand prestige in the luxury market and changing consumer tastes. Cadillac’s frequent updates and incentives on new models also push down used prices. If luxury features and a smooth ride attract you, consider how quickly the CT6 can depreciate before making a decision.
5. Maserati Ghibli
The Maserati Ghibli offers Italian style and performance, but its resale value is disappointing. High maintenance costs, expensive insurance, and a reputation for reliability issues combine to scare off used buyers. The Ghibli’s rapid depreciation means your investment could be cut in half after just two years. For those considering a Maserati, buying gently used may be a more financially prudent choice than purchasing a brand-new model.
6. Lincoln Continental
The Lincoln Continental returned with much fanfare, but the sedan market has shrunk in the U.S. This car is now one of the cars that lose 50% of their value in the second year. Even though it offers plenty of comfort and space, shifting buyer preferences toward SUVs and crossovers has hurt its resale value. Incentives on new models and a lack of strong brand cachet in the luxury space have made the Continental a risky buy for those hoping to retain value.
How to Avoid the Fastest-Depreciating Cars
Buying a new car is a big investment, and depreciation is a silent cost that can drain your finances quickly. If you want to avoid cars that lose 50% of their value the second year, do your homework before committing. Opting for models with strong resale histories, modest luxury features, and reasonable maintenance costs can help protect your investment.
Depreciation isn’t the only factor to consider, but it’s one that can have a big impact on your wallet. If you’re set on a luxury or performance car, buying certified pre-owned can help you avoid the steepest part of the depreciation curve. No matter what you decide, being aware of which cars lose value fastest gives you the upper hand when negotiating and planning for the future.
Have you ever owned a car that lost its value faster than you expected? Share your story in the comments below!
