These Used Luxury Cars Cost Less Than A New Toyota Corolla
Luxury cars are expensive. These vehicles are marketed not so much for their functionality, but more for the emotional prestige that’s associated with owning such a vehicle. There’s no practical rationale for buying a luxury car, and that’s why most of the time (though not always), they’re also the ones that depreciate the fastest.
As the saying goes, “One man’s trash is another man’s treasure,” and that’s very much applicable to some vehicles in the luxury segment. The 2027 Toyota Corolla is one of the most affordable and most popular cars in the United States, and it is priced from $23,325. Now, what if I told you that the used luxury cars I’m about to show you cost less than a Corolla, but will no doubt offer a higher level of prestige?
Here’s a list of affordable luxury sedans that used to be expensive when new, but the magic of depreciation has made them more affordable. The cars here are arranged from least to most affordable. All of the data here is from iSeeCars, though it doesn’t necessarily mean that all of the cars here are the fastest to depreciate in the industry. The cars that made this list have all depreciated faster than the industry average in relation to their age.
2019 Mercedes-Benz E-Class
Average Used Price: $23,583 (63.1% Depreciation)
A 2019 Mercedes-Benz E-Class is based on the fifth-generation (W213) model, which debuted in 2016 for the 2017 model year. This is when the E-Class reverted to the brand’s more rounded shape while also featuring single LED headlight units instead of the nameplate’s distinct twin circular or squared-off headlamps. At the time, the E-Class was pushing the boundaries of tech, with an interior dominated by two large digital screens running the COMAND user interface. The materials used are also rich, with lush leather surfaces, tactile switches, and a generous serving of wood and/or metal trims.
Today, according to iSeeCars, a seven-year-old 2019 Mercedes-Benz E-Class has an average used value of $23,583, which represents a depreciation of 63.1 percent from its $53,500 base price when new. The industry average for a seven-year-old car is 52.7 percent, making this quite a fast-depreciating car. Thankfully, this generation of the E-Class is one of the more reliable and least expensive to own. RepairPal estimates that the E-Class has an average annual maintenance and repair cost of $788, which is only slightly above the industry average of $652. A well-maintained E-Class will be a pleasure (but still not cheap) to run, and will undoubtedly bring more prestige than a brand-new Corolla.
2019 Genesis G90
Average Used Price: $23,468 (74.7% Depreciation)
As mentioned, full-size luxury sedans tend to depreciate rapidly, and the 2019 Genesis G90 is no exception. A 2019 Genesis G90 would have cost you at least $70,345, but with an average value of $23,468, this represents a steep 74.7 percent depreciation that outpaces the seven-year industry average of 63.1 percent. Unfortunately, RepairPal doesn’t have average repair and maintenance cost data for the G90, but our sister site, CarBuzz has determined that the 5.0-liter Tau V-8 is the more reliable engine choice.
So, what could be the main reason for the G90’s depreciation? Well, being a Hyundai Motor Group (HMG) vehicle, its maintenance costs shouldn’t be too far from those of its more mainstream models. HMG brands have also steadily built a reputation for quality and reliability, and that quality extends to the G90’s truly luxurious interior. Perhaps it’s the fact that Genesis as a brand does not yet resonate widely, but we cannot say for certain. Still, if you’re convinced about getting a used G90, just be sure to look for a model that’s well maintained and with complete service records.
2019 Audi A6
Average Used Price: $21,443 (66.5% Depreciation)
A 2019 Audi A6 means getting the C8, or the fifth-generation model, which depreciates faster than an equivalent 2019 Mercedes-Benz E-Class. Though the difference between the two isn’t much, the A6’s faster depreciation may be attributed to its higher repair costs. RepairPal estimates that an A6 costs a whopping $913 in terms of annual average repair or maintenance costs, which is almost $300 more than the Benz.
When new, the 2019 Audi A6 started at $54,100, and it made a name for itself with its sumptuous interior quality and sleek implementation of its tech features. The dual touchscreen layout was considered innovative, as it combined physical and touchscreen controls with haptic feedback. The new-generation Virtual Cockpit digital gauge cluster was also praised for its layout, while the solid and stable driving dynamics were also a major highlight. Audi’s LED lighting game was also on point for this generation.
2021 Alfa Romeo Giulia
Average Used Price: $21,368 (51.4% Depreciation)
The newest car on this list is a 2021 Alfa Romeo Giulia, which makes it a relatively young five-year-old car. In just five years, more than half of its value is lost, dropping to just $21,368 on average from its $40,350 base price when new. That’s way beyond the industry average of 41.5 percent depreciation for a five-year-old car. Italian luxury sedans continue to build on the stereotype of being among the fastest-depreciating cars out there. It doesn’t help that they are notorious for being among the least reliable cars to own and yet also among the most expensive to run.
Thankfully, however, the reliability aspect seems to be more of a reputation. Though it has not suddenly become a Toyota, the Giulia is one of the most reliable Alfas you can buy today. This has been determined by our sister site, CarBuzz, based on their research, which includes testimonials from owners themselves. An Alfa Romeo is also a rite of passage for some car enthusiasts, just because of how emotionally great its sporty cars are to drive. The interior, however, isn’t up to par with its German rivals, but if driving pleasure is the top priority, then it’s hard to argue against the Giulia’s sporting character. Yes, a BMW 3 Series is also fun, but an Alfa Romeo Giulia offers a distinctly different kind of driving pleasure.
2019 BMW 5 Series
Average Used Price: $20,040 (66.5% Depreciation)
Costing less than a 2019 Audi A6 but still featuring a similar depreciation rate is the 2019 BMW 5 Series. The 5 Series for this model year means getting the G30 generation, which has likewise been known for pushing the boundaries of tech. This was an era when BMW’s iDrive 7 operating system was spreading to more models, while high-tech features like the Display Key and the gimmicky gesture controls from the 7 Series were added to the 5 Series. In fact, the 5 Series this time around felt more like a shrunken 7 Series as opposed to an enlarged 3 Series.
But why does it have a lower used price than the Audi, even if they have the same depreciation rate? Well, it likely has to do with its lower base price when new. A base 530i started at $53,400, while a base A6 started at $54,100. In terms of running costs, RepairPal estimates that the 5 Series costs $620 in terms of repair costs, which is actually below the industry average of $652. We’ve reported how the 2.0-liter turbo four-cylinder B48 and the 3.0-liter turbo straight-six B58 are known to be reliable (sans the plastic parts), and that reputation is reflected in its running costs.
2019 Volvo S90
Average Used Price: $19,137 (67.2% Depreciation)
Next up is another midsize European luxury sedan: the 2019 Volvo S90. This midsize luxury sedan has made a name for itself thanks to its timeless exterior design and sumptuously crafted interior. It has, in my opinion, one of the finest interiors in its segment, especially when you opt for the open-pore wood trims. Being a Volvo, safety is a top priority for the brand, while its handling and driving character are focused on delivering a comfortable driving experience with reasonable stability. If you want the wagon version, you may want to check out the V90 here in all its long-roof glory.
When brand new, the S90 cost $47,350, which is lower than its German rivals, but today, it costs far less than a brand-new Corolla at an average used price of $19,137, despite its sumptuous Swedish luxury. In terms of reliability, the S90’s available twin-charged (turbocharged plus supercharged) 2.0-liter four-cylinder engines are complex and harder to maintain. Stick to the simpler 2.0-liter turbo four-cylinder engines, and you’ll have fewer gremlins to worry about. As for RepairPal’s evaluation, the S90 has an average annual repair cost of $522, which is below the industry average of $652. The S90 may depreciate slightly faster than its German rivals, but this also makes it a value-packed used luxury purchase.
2016 BMW 7 Series
Average Used Price: $18,275 (81.6% Depreciation)
The full-size 7 Series represents the pinnacle of luxury and indulgence within BMW’s lineup. When brand new, a base 2016 BMW 7 Series with the G11 chassis retailed for $81,300, but 10 years later, it has depreciated by a whopping 81.6 percent to just $18,275. That’s way more than the industry average of 65.4 percent depreciation for a ten-year-old car. This is BMW’s flagship from a generation ago that we’re talking about, and there is no way that a brand-new Corolla can match up to its cutting-edge luxury features and build quality.
But is there a catch as to why it depreciates rapidly? Simple: sheer electronic complexity. The B58 3.0-liter turbo straight-six and the N63 4.4-liter twin-turbo V-8 aren’t the cheapest to maintain, but they’re reasonably reliable for what they are. Your major problems lie with its sheer number of electronic features and the standard air suspension. As I always mention in my articles, simpler means fewer chances of breaking and thus equates to a more reliable car. RepairPal estimates that the B58-equipped 740i has an average maintenance or repair cost of $847, while the N63-equipped 750i costs more to maintain or repair at $1,061.
2016 Audi A8 L
Average Used Price: $17,644 (81.4% Depreciation)
Now, the most affordable luxury car on this list, with one of the highest depreciation rates relative to its age, is the 2016 Audi A8 L. Yes, it’s Audi’s flagship luxury sedan, which means you’re getting flagship luxury features for less than a brand-new Corolla. Unlike the same model year of the BMW 7 Series, which was fresh from a full redesign, the 2016 Audi A8 is the previous third-generation D4 model nearing the end of its life cycle. It had a slightly higher price tag of $81,500 versus a 2016 BMW 7 Series, but today, thanks to ten years of rapid depreciation reaching 81.4 percent on average, the A8 is even more affordable than a brand-new Corolla.
The D4-generation 2016 Audi A8 is, in my opinion, one of the best generations of this vehicle. This is one of the final Audi models that featured an MMI infotainment system with a pop-out screen and a tactile rotary knob controller. The interior is bathed in the finest materials as well, while the amenities are what you can expect in a flagship, such as massaging seats, heated and cooled seats, and available rear VIP seating, among other premium features. Unsurprisingly, your areas of concern on the A8 surround its plethora of electronic luxury features. RepairPal says that the A8’s average annual repair and maintenance costs are $731, which is lower than the 7 Series but higher than the industry average of $652.
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