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According to S&P Global Mobility, crossovers and SUVs made up close to 70% of the luxury vehicle sales in the US last 2021. The popularity of luxury SUVs will likely continue, as another study by Mckinsey & Company shows that roughly half of luxury vehicle owners will probably choose luxury SUVs for their next vehicle purchase.
If you’re in the market for a luxury SUV, you should keep in mind that luxury vehicles tend to depreciate faster than mass-market models do. Depreciation can work in your favor if you’re looking for a used luxury SUV. However, if you want to buy a new luxury SUV today to trade it in for a newer luxury model in 5 years, then depreciation will be one of your biggest leaky financial faucets.
Based on Kelley Blue Book‘s (KBB) research, most cars lose 10% to 20% of their market value after the first year of ownership. There are many different vehicle residual value methodologies available, like the ones from J.D. Power, iseecars.com, and CarEdge. According to CarEdge, properly maintained and good-condition luxury vehicles have a median residual value of roughly 68% after 5 years of operation (at 12,000 miles of driving range per year).
Using cross-referenced vehicle reviews, resale values, and used car pricing data from CarEdge, Kelley Blue Book (KBB), J.D. Power, Consumer Reports (CR), and Edmunds, here are 10 brand-new luxury SUVs that are predicted to depreciate faster than most.
10 2023 Volvo XC90 – 66.38% Residual Value After 5 Years
The 2023 Volvo XC90 is a 3-row luxury midsize SUV powered by 3 different hybrid engine systems (2 mild hybrids and 1 plug-in hybrid) utilizing the same 2.0-liter turbocharged I-4 engine. The base mild hybrid system puts out 247 hp and 258 lb-ft of torque, while the mid-spec mild hybrid produces 295 horses and 310 lb-ft of twist. Choosing the range-topping plug-in hybrid system will give you 455 hp, 523 lb-ft of torque, and a 36-mile electric-only driving range.
You can expect the 2023 Volvo XC90 to retain 66.38% of its showroom price ($56,000 to $79,900 base SRP, depending on the trim) after 5 years. This residual value is slightly below the 68% median, but it is consistent with J.D. Power’s “average” resale value score of 76/100. Consumer Reports gave the 2023 Volvo XC90 a predicted reliability rating of 2/5, and J.D. Power gave this luxury SUV a 76/100 overall score.
9 2023 Porsche Macan – 65.90% Residual Value After 5 Years
The Porsche Macan is one of the quickest and most nimble 5-seater luxury compact SUVs in the market today. The 2023 Macan is the 9th model year of its pioneer generation, but it still turns heads like an all-new model. Available in the base, T, S, and GTS trims, the 2023 Porsche Macan uses two powerplant options with different levels of tuning. The base Macan gets a turbocharged 2.0-liter 4-cylinder mill (261 hp, 295 lb-ft of torque) while the top GTS trim draws 434 hp and 405 lb-ft of twist from a twin-turbo 2.9-liter V6 engine.
CarEdge predicts that the Porsche Macan will retain 65.9% of its original value ($57,500 to $82,900 starting price range) after 5 years of operation. J.D. Power consumer reviews, however, gave the 2023 Porsche Macan a “great” 88/100 resale value score and an 83/100 overall rating. The discrepancy between CarEdge’s and J.D. Power’s ratings is attributable to the fact that not many Macan owners will actually drive their Porsche SUVs for 12,000 miles a year. Finally, CR gave the 2023 Porsche Macan a 3/5 predicted reliability rating.
8 2023 Audi Q7 – 64.22% Residual Value After 5 Years
The 2023 Audi Q7 is a stylish, 3-row luxury midsize SUV with seating space for 7 people. Available in three trim levels, the 2023 Audi Q7 also comes with three powerplant options: a base 2.0-liter turbo inline-4 (261 hp, 273 lb-ft), a mid-spec 3.0-liter turbo V6 (329 hp, 325 lb-ft), and a range-topping 4.0-liter twin-turbo V8 (500 hp and 568 lb-ft for the SQ7 trim).
The 2023 Audi Q7 will have a 64.22% residual value from its current $59,200 to $64,800 base price range after 5 years of operation. J.D. Power seems to concur with an 81/100 resale value score and a 72/100 overall rating. CR’s 3/5 predicted reliability rating is also in line with these assessments.
7 2023 BMW X5 – 64.15% Residual Value After 5 Years
The BMW X5 is a powerful and sporty midsize crossover SUV with seating for 5 to 7 people. For 2023, the BMW X5 uses 4 different engine options, starting from a base 3.0-liter turbo I-6 (335 hp, 330 lb-ft) for the sDrive trim up to the roaring 4.4-liter twin-turbo V8 (617 hp, 553 lb-ft) for the X5 M Competition trim.
After 5 years of operation, the BMW X5 is bound to retain roughly 64% of its original value ($61,600 to $108,900 starting price range). J.D. Power’s 73/100 resale value score seems to be in line with CarEdge’s assessment. Reliability-wise, CR gave the 2023 BMW X5 a 3/5 reliability prediction score while J.D. Power gave an 80/100 overall rating.
6 2023 Land Rover Range Rover Evoque – 62.88% Residual Value After 5 Years
The Land Rover Range Rover Evoque is a “small,” off-road-capable crossover SUV that slots between the subcompact and compact size classes. For the 2023 model year, the Range Rover Evoque uses a 2.0-liter turbo-four engine (246 hp, 269 lb-ft) or a mild hybrid system based on the same engine (296 hp, 295 lb-ft).
CarEdge predicts that the 2023 Range Rover Evoque will retain 62.88% of its original value ($45,000 to $55,300) after half a decade of operation. KBB experts gave the 2023 Evoque a lukewarm 3.2/5 overall rating, and CR echoed with its own skeptical 2/5 predicted reliability score.
5 2023 Porsche Cayenne – 62.04% Residual Value After 5 Years
For Porsche SUV enthusiasts who aren’t contented with the Macan, there is always the Porsche Cayenne – a more powerful 5-seater midsize crossover SUV. Available in standard crossover and coupe formats, the 2023 Cayenne offers 7 potent powerplant options, starting from a base 3.0-liter turbo V6 (335 hp, 332 lb-ft) up to a 4.0-liter twin-turbo V8 hybrid (670 hp, 663 lb-ft of torque).
The 2023 Porsche Cayenne, which has a base price range of $72,200 to $188,700 depending on the trim level, will retain approximately 62% of its value after 5 years. This depreciation estimate is consistent with J.D. Power’s resale value score of 72/100, and CR’s 3/5 predicted reliability score.
4 2023 Mercedes-Benz GLC – 59.82% Residual Value After 5 Years
All-new for 2023, the Mercedes-Benz GLC compact luxury SUV is a little bigger and has a better-appointed cabin than its predecessor. The 2023 GLC doesn’t have an AMG variant for now, so it only has one powerplant option: a 2.0-liter turbocharged inline-4 engine that puts out 258 hp and 295 lb-ft of torque.
After half a decade, you can expect the 2023 Mercedes-Benz GLC to keep only 59.82% of its showroom price (base SRP range of $47,100 to $68,200). J.D. Power seems to disagree slightly with a “great” resale value score (82/100), but CR appears to be unconvinced of the 2023 GLC’s reliability (predicted reliability score of 2/5).
3 2023 Land Rover Range Rover – 56.91% Residual Value After 5 Years
The Range Rover is the flagship full-size luxury SUV of the Land Rover stable. The 2023 Land Rover Range Rover comes in two wheelbase lengths and with 3 powerplant options: a 3.0-liter turbocharged/supercharged mild-hybrid I-6 engine (395 hp, 406 lb-ft), a 4.4-liter twin-turbo V8 (523 hp, 553 lb-ft), and a 3.0-liter plug-in hybrid engine system (434 hp, 406 lb-ft, 48-mile electric range).
Land Rovers aren’t known for their great resale values, and the 2023 Range Rover is no exception with its expected 56.91% 5-year residual value (from its original $104,500 to $218,300 base price range). J.D. Power also concurs with its 76/100 resale value score and CR chimes in with a paltry 2/5 predicted reliability rating.
2 2023 Mercedes-Benz GLE – 51.55% Residual Value After 5 Years
The 2023 Mercedes-Benz GLE is a 5-seater luxury midsize SUV with an optional 3rd-row seat. Similar to many of its stablemates in the German automaker’s lineup, the 2023 GLE combines performance, elegance, comfort, and leading-edge technology into one package. Power comes from 5 different engine options, starting from a 2.0-liter turbo-four mill (255 hp, 273 lb-ft) up to a 4.0-liter twin-turbo, mild-hybrid V8 block (603 hp, 627 lb-ft).
The 2023 Mercedes-Benz GLE is expected to retain only 51.55% of its current showroom price ($57,700 to $120,700 starting price range), and J.D. Power seconds this assessment with a 78/100 resale value score. CR experts think that the 2023 GLE will not be very reliable, as they gave a 2/5 predicted reliability rating.
1 2023 Mercedes-Benz GLS – 47.62% Residual Value After 5 Years
Completing this list of luxury SUVs with the lowest resale values is the 2023 Mercedes-Benz GLS – the German carmaker’s largest SUV. To propel its full-size weight, the 7-seater GLS uses 4 powerplant options, starting from a base 3.0-liter turbo I-6 engine (362 hp, 369 lb-ft) up to a 4.0-liter twin-turbo V8 (603 hp, 627 lb-ft) for the AMG GLS 63 variant.
The 2023 Mercedes-Benz GLS has a starting price range of $81,800 to $170,000, but it will retain less than half of this value (47.62%) after 5 years of operation. In terms of reliability scores, J.D. Power (75/100) and CR (2/5 predicted reliability) are not entirely optimistic.
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