AIADA names 10 luxury cars with lowest resale value

The AIADA (American International Automobile Dealers Association, the only organization whose sole purpose is to represent, serve, and protect America’s 11,000 international nameplate automobile franchises) newsletter reported that poor reliability, senescent designs and supply that oversteps demand are the main causes of low resale values.

The top 10 luxury vehicles which are likely to shed the most value over time each have at least one of those qualities.

Forbes magazine has piled up a list of those ten with pictures and explanations of their value-losing potential.

The Lincoln Town Car and the Mercury Grand Marquis are the top two value losers on the list. Both cars are being sold in huge numbers to different vehicle fleets, such as limo, taxi and rental agencies, and they use really old technology – those that were built decades ago.

Larry Batton, president and founder of Auto Appraisal Group Inc., said that these two cars are outdated and do not meet the desires of modern buyers. Similar issue is tagged on other cars on this list – their price is too high for the value they offer.

It is important to not, however, that this list is not about bad cars. As a matter of fact, they usually perform well. But an Auto Channel journalist asks “how much are you willing to pay for perceived prestige?”

Forbes List of 10 Worst Residual Valued Luxury Cars
10. Cadillac SRX V8
MSRP: $43,870
Residual Value After Five Years: 27 percent*

9. Ford Expedition V8 4WD
MSRP: $32,895
Residual Value After Five Years: 27 percent

8. Cadillac DTS V8
MSRP: $41,990
Residual Value After Five Years: 26 percent*

7. Cadillac STS V6
MSRP: $42,765
Residual Value After Five Years: 26 percent*

6. Lincoln MKZ AWD
MSRP: $31,765
Residual Value After Five Years: 26 percent*

5. Mercedes-Benz E550
MSRP: $59,775
Residual Value After Five Years: 26 percent*

4. Jaguar S-Type V6
MSRP: $49,000
Residual Value After Five Years: 25 percent*

3. Jaguar X-Type Sedan and Wagon
MSRP: 34,995
Residual Value After Five Years: 25 percent

2. Mercury Grand Marquis LS
MSRP: $30,320
Residual Value After Five Years: 23 percent*

1. Lincoln Town Car
MSRP: $42,985
Residual Value After Five Years: 17 percent*

Entries with asterisk (*) means their residual values are courtesy of Kelley Blue Book and are expressed as a percentage of the original MSRP.

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