4 Used Luxury Cars That Are Bad Investments for Retirees
Written by
Andrew Lisa
Edited by
Jenna Klaverweiden
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Many retirees choose used cars based on their dependability, ownership costs, fuel economy and sticker price — but others are in the market for a posh previously owned purchase.
Older drivers with the means shouldn’t think twice about splurging on a used luxury vehicle if that’s what makes them happy — but they should think twice about buying the following models, which can make infamously bad automotive investments.
Land Rover Range Rover
Retirees looking for deals on luxury vehicles will surely see Range Rovers selling at a discount. According to CarEdge, this high-end ride depreciates fast, retaining less than 42% of its value after five years — but there’s a reason for that.
The publication cited ongoing technical issues and repeated recalls, warning that its maintenance and repair costs will “knock you over.”
RepairPal estimated owners spend an average of $1,258 per year keeping their Range Rovers in good working order.
Mercedes-Benz G-Class
On the other end of the depreciation spectrum is the Mercedes-Benz G-Class. CarEdge ranked the G-Class No. 1 on the list of luxury vehicles that hold their resale value. It greedily clings to 77.81% of its original MSRP after five years.
However, while it’s not infamous for frequent trips to the mechanic’s shop like the Range Rover, a good deal on a used model is hard to find. According to CarEdge, this model isn’t for everyone and doesn’t come cheap.
Cadillac XTS
The XTS fits into Cadillac’s long and storied tradition of making big, heavy and expensive luxury vehicles — but in terms of drivability, the luxury part might not be so apparent to retirees buying used.
The 2013 redesign model — which was discontinued after 2019 — was pilloried for its economy-class ride, which Consumer Reports called “jittery” in reporting that it “falls short” of the beloved and luxurious DTS flagship it replaced.
The Kelley Blue Book (KBB) fair market value of a 2019 model starts at around $25,000 — roughly half the price of its original MSRP. That might seem like a good deal, but when Car and Driver gave it an underwhelming six out of 10 stars, it griped that the XTS didn’t offer as much luxury as other comparable models.
Six years ago, that breached the $70,000 mark. Today, you’re looking at the mid-to-high $30,000s on the used market — about what you’d spend on a brand-new 2025 Audi Q3 or A3.
Lexus ES 350
In terms of luxury cars that jealously guard their value, CarEdge ranked the Lexus ES 350 second behind only the Mercedes-Benz G-Class. Its five-year residual value is a hefty 71.6%.
That makes good deals elusive on the used market — and retirees might be better off looking elsewhere, anyway.
Car and Driver gave the 2025 model — part of the seventh generation that launched in 2019 — a middling seven out of 10, which has been par for the course for the last six years. It cites a slow, unengaging ride and a poor use of interior space, making the Toyota Camry — which the ES is based on — a wiser, cheaper choice with many of the same features.
According to KBB, the fair market value of a used entry-level 2022 model is just under $39,000 — less than $10,000 off the original MSRP.
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