Mercedes EQS Loses Nearly Half Its Value In A Year

Buying a new car comes with many positives, but not many people factor in depreciation when purchasing a new vehicle. A new study highlights this expense that quietly chips away at your vehicle’s value even when you’re not driving it. What should you avoid buying new? On the other hand, which cars should you buy new and avoid on the second-hand market?
 

Please note that this article is based on a study from iSeeCars, and the sample size has not been disclosed. Data is likely based on the site’s own used vehicle inventory, but specifics have not been provided.
 
Avoid Buying These Cars New If You Can
According to the study, the Mercedes EQS suffers from the highest depreciation. After one year, the electric luxury sedan drops a staggering 47.8% of its value, shedding an average of $65,143 off its original MSRP. While that’s enough to make the first owner lightheaded, that means there are plenty of second-hand deals to be enjoyed. Then again, you may get a decent discount on the EQS, as dealers are struggling to sell the polarizing Mercedes EV.
 
The EQS is one of five electric vehicles among the top 10 biggest depreciators, with the remaining spots taken by the Jaguar F-Pace, BMW 7 Series, and Mercedes-Benz S-Class.
 
Karl Brauer, an iSeeCars executive analyst, said that “some models lose more than 25% of their value after just one year.” Only three of the 20 highest depreciating cars come from Japan, and they all fall under the Nissan umbrella (Leaf, Murano, and Infiniti QX80).
 

The Cars You Should Consider Buying New
On the other side of the coin, several cars depreciate at a glacial pace. Surprisingly, the new Range Rover sits at the top of the pile. Not only does the Range Rover not depreciate, but according to the study, year-old examples sell for more on the second-hand market than when they were new. This shows an incredibly high demand for the British luxury car, and Land Rover clearly can’t keep up with enough supply.
 
The Range Rover is 2.8% more expensive than new, with an average selling price of $147,311 on the used market. The humble Kia Rio (discontinued last year) is in second place, losing just 0.1% of its value after a year. For shoppers on a budget, this only bolsters the value for money the little Kia provides. Aside from the Mercedes G-Class and Chevy Corvette, the rest of the list comprises cars like the Toyota Corolla Hybrid, Toyota RAV4 Hybrid, Honda Civic, and Tesla Model Y – efficient vehicles that remain in demand with mainstream buyers.