The thrill of buying a brand-new car often fades when you realize how much value it loses the moment you drive off the lot. Some vehicles hold their worth better than others, but luxury sedans and high-end SUVs are notorious for massive first-year depreciation. In Canada and the U.S., these twenty models stand out for losing thousands of dollars in value within the first twelve months of ownership. Expanded with more detail and tied to specific model years, here are the cars that take the biggest early hits.
BMW 7 Series (2020–2024)
BMW’s flagship sedan delivers futuristic technology and serene comfort, but buyers looking for a used luxury ride rarely want to pay anywhere near new-car money. The first year typically wipes tens of thousands from its value. Owners who love it are treated to limousine-like luxury, but financially it’s one of the riskiest BMWs to buy new.
Mercedes-Benz S-Class (2021–2024)
The S-Class has long been the gold standard for full-size luxury sedans, but the cycle of constant innovation works against resale. A one-year-old model can already feel dated to status-conscious buyers. While it offers unmatched refinement, first-year depreciation is brutal.
Jaguar XJ (2018–2019)
The XJ went out of production after 2019, and while it remains stylish and quick, its resale value never held strong. First-year buyers lost heavily as demand shifted toward SUVs, leaving the XJ as a bargain on the used market.
Audi A8 (2020–2024)
Audi’s largest sedan boasts cutting-edge interiors and quattro stability, but the used market favors smaller models like the A6. Within a year, new owners often see their investment lose value faster than comparable German rivals.
Maserati Ghibli (2019–2024)
The Ghibli tempts buyers with Italian style and Ferrari-related heritage, but its rapid depreciation is infamous. First-year buyers are hit hardest due to limited demand and concerns over long-term reliability. Enthusiasts buying used, however, can find themselves a serious bargain.
Maserati Quattroporte (2020–2024)
Like the Ghibli, the larger Quattroporte loses value quickly. Even though it offers exotic looks and prestige, depreciation is harsh because buyers in the luxury sedan segment tend to lean toward BMW or Mercedes. First-year losses make it one of the steepest drops in its class.
Cadillac CT6 (2018–2020)
The CT6 was Cadillac’s ambitious attempt to rival European luxury sedans, but it never gained a loyal following. Buyers who picked one up new saw steep first-year depreciation, while those shopping used benefited from luxury at a fraction of the price.
Genesis G90 (2020–2024)
Genesis has built respect in recent years, but the G90’s badge recognition still trails far behind European rivals. Despite being a well-equipped luxury sedan, it depreciates fast. In its first year, the G90 often loses a chunk of its MSRP, which actually makes it one of the smartest used luxury buys.
Alfa Romeo Giulia Quadrifoglio (2019–2024)
The Giulia Quadrifoglio is a sensational driver’s car with a Ferrari-derived V6, but Alfa Romeo’s patchy reputation for reliability scares away resale buyers. First-year depreciation is steep, though enthusiasts willing to take the gamble can land a serious performance bargain.
Infiniti Q70 (2018–2019)
The Q70 was Infiniti’s larger sedan, but it was discontinued after 2019 due to slow sales. Even when new, it depreciated heavily in the first year, leaving used buyers with excellent deals on a comfortable, underrated sedan.
Lincoln Continental (2017–2020)
The return of the Continental was meant to revive Lincoln’s prestige, but it didn’t resonate with the younger market. By the end of its first year, values had dropped dramatically. Today, used Continentals are bargains, but for early adopters, it was a costly lesson in depreciation.
Volvo S90 (2020–2024)
Volvo’s flagship sedan is stylish, safe, and luxurious, but first-year values drop quickly. Buyers tend to prefer smaller Volvo SUVs like the XC60, leaving the S90 struggling for resale strength. It remains a great car, just not one to buy brand-new if depreciation matters.
BMW 5 Series (2020–2024)
While not as extreme as the 7 Series, the 5 Series still depreciates quickly. With so many examples on the used market, competition drives prices down. Owners love its balance of luxury and performance, but in resale terms, the first year hurts.
Mercedes-Benz E-Class (2020–2024)
The E-Class is one of Mercedes’ most popular models, but it still takes a big hit in its first year. With so many options available, buyers prefer slightly used models, which leads to significant early depreciation.
Jaguar F-Type (2019–2024)
The F-Type is drop-dead gorgeous and fun to drive, but its demand isn’t strong enough to hold values. First-year depreciation is steep, meaning used examples are significantly more affordable and tempting for those who want a luxury sports car at a discount.
Porsche Panamera (2020–2024)
The Panamera blends Porsche performance with luxury sedan comfort, but unlike the 911, it depreciates quickly in its first year. Luxury sedan buyers often flock to the used market to score massive discounts, making brand-new purchases financially painful.
Land Rover Range Rover (2020–2024)
Range Rovers are symbols of wealth and luxury, but their depreciation curve is notorious. Reliability concerns and high ownership costs drive steep first-year drops. For used buyers, that makes them tempting, but for new owners, it means big losses early.
BMW X7 (2020–2024)
BMW’s largest SUV commands a big price tag when new but quickly loses value as used buyers turn to more affordable alternatives like the X5. In its first year, the X7 can see one of the largest depreciation hits in the luxury SUV segment.
Mercedes-Benz GLS (2020–2024)
Like the X7, the GLS is opulent but depreciates quickly due to its high sticker price and heavy competition in the luxury SUV market. A one-year-old GLS can often be had at a staggering discount compared to new.
Cadillac Escalade (2021–2024)
Even though the Escalade dominates the luxury SUV scene, it suffers from rapid first-year depreciation due to fleet sales and the constant push for updated tech features. Buyers who wait a year can save huge, while original owners absorb the hit.
Why These Cars Depreciate So Fast
The biggest losers in year one tend to be luxury sedans and SUVs, where buyers expect the latest styling and features. Reliability concerns, brand perception, and market demand also play big roles. In Canada and the U.S., depreciation like this creates bargains for used buyers, but for those who must have a model brand-new, these twenty cars serve as a reminder: prestige often comes with a heavy financial price in the first twelve months.
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