10 Luxury Brands With The Best Resale Value

One of the most difficult decisions to make as a car owner is when it’s time to move on from your current vehicle. There are many factors that can influence this decision, such as the sentimental value of the vehicle, what the expected return will be upon its sale, and the current condition of the vehicle in general. These issues are only exacerbated for luxury car brand owners, who often are disappointed to see the resale value of their vehicles be much lower than anticipated. Certainly, the used market seems much more willing to shell out big bucks for reliable Toyotas than temperamental German luxury cars.

Nevertheless, there is a resale market for luxury-class vehicles, but what’s difficult to nail down is when the right time to sell is. Generally speaking, selling after seven years is an advisable decision due to the fact that most car financing terms are in the three to five year range. This gives luxury drivers the opportunity to get their money’s worth out of the vehicle, while still also selling it at a point in time where it’s still relatively valuable. With that in mind, here are the ten luxury brands with the highest average resale value after seven years.

10 Jaguar (38.36% Resale Value)

Just barely making the list is Jaguar with a 38.36% resale value across the brand as a whole. Per available data, the brand beat out Tesla for the lowest spot on this list by a scant 1.42% advantage in resale value, which makes sense considering what Jaguar is. They’re great cars, but almost every generation of almost every model seems to have its own uniquely frustrating issues and quirks which greatly affect both drivers’ enjoyment of the vehicle and its resale value. Likewise, such a low figure could very well be influenced by owners just wanting to get rid of the car and get into something else as soon as possible.

9 Audi (38.36% Resale Value)

Both the inherent presence of a German car on this list, and the ranking of Audi specifically as being so low, should come as no surprise to anyone. On the optics side, Audi is undoubtedly a very well-respected brand by those in the industry who are passionate about all things automobiles. Many would even go as far as to call them the best “basic” German car brand (i.e. excluding the likes of Porsche and Alpina). However, in pop culture and to the average layperson, Audi is perceived as well below BMW and Mercedes-Benz in perceived value. Add in the fact that Audis are known for their catastrophic failures which often see the cars scrapped rather than sold, and it should come as no surprise that Audi is now only low on this list, but the lowest of Germany’s Big Three.

8 Infiniti (39.07% Resale Value)

What should also come as no surprise is that Infiniti is given the lowest average resale value of the luxury offshoots of Japan’s Big Three brands, with Infiniti being Nissan’s pet-project. While relatively reliable cars, the issue with Infiniti is that their performance and offerings have always been viewed as generally inferior to those of Lexus and Acura, made by Toyota and Honda respectively. The Infiniti brand has also developed something of a negative reputation in the used car market in terms of what it says about drivers, which further impacts resale value. Another key factor which is worth mentioning is the brand’s penchant for electrical issues, which are often some of the most difficult and expensive problems to fix.

7 Mercedes-Benz (39.21% Resale Value)

The second of Germany’s Big Three on this list, Mercedes-Benz’s low average resale value can be attributed to a few major factors. Firstly, these cars generally skew more toward luxury than sport, especially in the models which are most likely to be on the resale market in the first place. This likewise limits interest from potential buyers who may want more of an equal blend between sport and luxury. Benz also suffers from being one of the most expensive brands in general to repair, as well as proving to be one of the most temperamental in that regard. While the brand’s status is undeniable, it clearly struggles to make a meaningful name for itself among second-hand prospective purchasers.

6 Cadillac (40.10% Resale Value)

The first brand here to break the 40% resale barrier, this achievement speaks to the quality of vehicles Cadillac has been producing over the last decade. The brand has elevated itself in a meaningful way, comparable to the qualitative resurgences and improvements of fellow American brands Jeep and Chevrolet seen in the same period. The brand also benefits from having a storied legacy, being relatively inexpensive to fix in terms of parts cost, and reaching a uniquely happy medium between sport and luxury in its offerings. Combined with the name-brand recognition and what that name-brand is most heavily associated with, its feat in breaking the 40% barrier should come as no surprise.

5 BMW (40.23% Resale Value)

Considering how significant of a staple BMW is in the pop culture zeitgeist, it should come as no surprise that the brand is the highest-ranking of Germany’s Big Three in terms of resale value. Many regard the brand as the gold standard in sports-luxury blends, with the brand’s rich motorsport history certainly helping to justify such a claim. However, this benefit isn’t quite enough to outweigh the many issues these cars face. Cooling system problems, general engine issues, and in recent years some significant recalls all plague the general used offerings one would see from the brand in the average forum.

4 Porsche (40.55% Resale Value)

It should come as no surprise that Porsche sits atop the German luxury brand rankings when it comes to resale value. Whereas Germany’s Big Three are known for arguably having more problems than they’re worth, Porsche has made a name for itself by delivering reliable, incredible quality which blurs the lines between sports and luxury in an uncanny way. While the brand is known for some issues such as general oil and fluid leaks, this can be attributed to every other major German brand, let alone most other luxury brands as well. Yet the resale value for Porsche speaks to how reliable these cars can be even in a second-hand context. With proper maintenance and some tender loving care, these vehicles can distinguish themselves as some of the most reliable and most enjoyable on the used market, for those who can afford them.

3 Volvo (40.86% Resale Value)

While this will almost certainly come as a shock to most, Swedish car brand Volvo earns a place on the podium when it comes to luxury brand resale values after a seven-year period. This likewise speaks to the incredible quality and reliability Volvo has been known for across the better part of this century, which remarkably does not come at the sacrifice of a luxury feel. Stepping into a Volvo from anytime in the past decade is comparable to almost any other brand on this list in terms of feel, features offered, and the quality of build and materials used in the vehicle’s construction. Sure, the brand may not be as sporty as the likes of BMW or Porsche, but when it comes to fulfilling a luxury role, the brand can go toe-to-toe with anyone else mentioned here.

2 Acura (44.63% Resale Value)

As mentioned above, Acura is considered one of the superior luxury offshoot brands to come from the Japanese Big Three, and its significant lead on Infiniti in terms of resale value further drives this home. Part of this stems from the reputation Honda has built for itself through its brand history, having a rich motorsport history and pairing it with the know-how to make nearly unkillable vehicles. Although the parent company sacrifices this invulnerability for an edge in sportiness when it comes to Acura vehicles, they nevertheless are comparable to Hondas and any other brand in terms of reliability and cost of repairs. Combined with a look and construction that oozes class and luxury, it’s no surprise that the brand takes second on this list.

1 Lexus (52.01% Resale Value)

It should also come as no surprise that Lexus ranks at the top of this list, being regarded as one of the best luxury brands in the world. Likewise, a well-over 50% resale value on the brand as a whole further drives home this reputation. Part of why Lexus’ resale value is so high can be traced back to the brand’s origins and ethos, which essentially boils down to sacrificing nothing in the “pursuit of perfection” the brand has become synonymous with. The brand combines trademark Toyota reliability with high quality luxury materials, a sporty feel and intelligent, thoughtful design choices, which combine to make it one of the most affordable, most appreciating, and very arguably the single most impressive luxury brand on the market today.

Sources:
CarEdge