Motorists risk losing thousands of pounds on their second-hand used car, with some vehicles from top brands such as BMW and Tesla dropping half their value due to depreciation. New analysis from eCarsTrade found some models had lost over £60,000 in value in just half a decade, in a major blow to owners.
Analysis has found that luxury sedans and electric models have seen the most significant price drop in the 2020s. According to eCarsTrade, the average new car loses about 20% of its value in the first year and up to 60% within five years. To put this to the test, the motoring experts looked into the values of models that first hit the roads back in 2020.
They found the BMW 7 Series has suffered the most significant hit, with average prices down 65.43% over the past five years.
This averaged out at an annual rate of depreciation of 13.09% with £61,484 (€73,201) axed from the price since the start of the decade.
The BMW 7 Series hit the market for £94,230 (€111,879) but is now found on second-hand sites for around £32,576 (€38,678).
Experts at eCarsTrade said: “Luxury buyers may be drawn to high-end features, but this model shows how quickly prestige can wear off in the resale market.”
Three electric models, Tesla’s Model S, Nissan Leaf, and Chevrolet Bolt, each lost half their value despite the hype around EVs.
The Model S was down 64.22% over five years, with a (€60,087) drop in value since the turn of the decade.
Costs have fallen by around 12.84% per yea,r with fees falling from £78,799 (€93,558) when new to £28,190 (€33,471) second-hand.
Specialists at eCarsTrade added: “Once a leading car of electric innovation, it now struggles in a used market saturated with newer EVs having longer ranges and more modern tech. Early adopters paid a premium – resale buyers aren’t.”
The Audi A6 was next with prices down 64.20%, dropping £31,380 (€37,258) over the past five years.
The Nissan Leaf with average prices down £19,818 (€23,531) (60.39%) followed by the Tesla Model Y which lost £29,765 (€35,340) (11.69%).
A spokesperson from eCarsTrade commented on the study: “We’re seeing that high sticker prices and futuristic branding don’t guarantee long-term value.
“In fact, the models that were once status symbols or breakthrough EVs are now the ones depreciating the fastest. Used buyers are looking for reliability, low costs, and updated features – not brand legacy or original hype.”