7 Used Luxury Cars That Are Bad Investments for the Middle Class

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Used luxury cars can seem like a smart investment, offering sleek designs, premium interiors, powerful engines and prestigious badges without breaking your budget. While it’s easy to be drawn in by the allure of driving a Mercedes-Benz or Lexus, not all luxury models deliver lasting value.

Beneath the surface, many of these vehicles tell a different story. A recent iSeeCars study reveals that several luxury brands suffer from some of the steepest depreciation rates in the market. Add in high maintenance costs and potential reliability issues, and the dream of owning a luxury car can quickly become a financial burden.

For middle-class buyers especially, the appeal of used luxury cars may come with hidden costs. Between rapid value loss and expensive repairs, some models are best avoided — no matter how tempting they may look on the lot.

Jaguar I-PACE

Though most people would love to take it for a test drive, the Jaguar I-PACE leads the list of worst depreciators, losing a staggering 72.2% of its value in just five years, translating to roughly over $50,000 being wiped away. Despite its cutting-edge design, the I-PACE’s rapid depreciation and potential out-of-warranty repair costs make it a risky choice for middle-class buyers, and it was discontinued in 2025.

BMW 7 Series

The BMW 7 Series promises luxury but delivers a sharp drop in value — about 67.1% gone in five years, costing you roughly $65,249. Earlier models were also infamous for high-pressure fuel pump failures, causing pricey repairs and widespread recalls. Talk about poor fuel economy.

Tesla Model S

The Model S electrified the luxury market, but its depreciation rate might shock you at around 65.2% lost within five years, about $52,165 in value. Though electric cars have fewer moving parts, out-of-warranty battery replacements and specialized repairs can quickly add up on the credit card.

Infiniti QX80 

This full-size luxury SUV loses about 65% of its value in five years, shedding more than $53,500. High fuel costs and maintenance expenses further erode its appeal for buyers who want to save money. You may want to skip dipping into your emergency fund for this one. 

Maserati Ghibli 

The Ghibli offers Italian style and speed, but it comes at a steep price that you will need more than a few good returns in the stock market to be able to afford on a middle-class salary. It loses nearly 64.7% of its value in five years, wiping out over $70,000. Add expensive maintenance and reliability concerns, and it’s clear this Maserati is better admired than owned.

Land Rover Range Rover 

The Range Rover radiates prestige and adventure but loses around 62.9% of its original value within five years, according to iSeeCars. Frequent engine, suspension and electrical issues mean costly repairs are almost guaranteed. At the price point, someone living in a middle-class income household would have to cash in a few index funds to be able to afford this investment.

Audi A8 L

Audi’s flagship sedan boasts tech-rich features and elegant styling, but it depreciates 62.7% in five years, losing about $57,724. Complicated electronics and delicate air suspension systems make it an expensive car to maintain once out of warranty.

Caitlyn Moorhead contributed to the reporting for this article.

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