A study by carVertical, a company that collects automotive data, shows that some cars lose value much faster than others. This depends not only on the brand or initial cost but also on demand in the secondary market. In Latvia, the Audi e-tron depreciates the most The study revealed that in Latvia, some new cars can lose more than half of their value in five years. The most rapid decline usually occurs in the first few years after purchase, after which the process slows down. Of all the cars checked by carVertical users in Latvia, the Audi e-tron lost the most value. Over five years, these models depreciated by an average of 63.1%. They are followed by the Ford Focus (62.9%), Volvo V60 (56.1%), Tesla Model 3 (54.2%), and Volkswagen Golf (51.7%). "Buying some vehicles may seem more advantageous. A wide range of features, good equipment, and other factors can push a buyer towards a specific model. However, some cars lose value faster than others. The decline in price can be considered a hidden cost that few drivers think about. If you buy a car with a high depreciation rate and later want to sell it, you need to be prepared for losses," noted Matas Buzelis, an automotive expert at carVertical. ## ## Luxury cars incur double costs In most countries where the study was conducted, more expensive cars and electric vehicles lose value faster. "Luxury cars depreciate faster due to their high initial price. High repair and maintenance costs also play a role, making the premium segment less attractive in the used car market. Given that modern cars rely heavily on technological solutions, many features quickly become outdated, which is why older luxury models often lose their appeal," explains Buzelis. According to the expert, the decline in value hits electric vehicle owners particularly hard. Due to the rapid development of battery technologies and increased range, even an electric car just a couple of years old can go unnoticed in the secondary market. Its maximum range on a single charge often does not meet modern standards, which limits its use mainly to urban trips. The cost of maintaining used premium cars is high, so buyers in this segment often opt for newer models. However, they should consider that in a couple of years, the price of such a car may drop sharply, and demand may be limited. According to carVertical data, the models with the highest depreciation in Europe over five years include the Jaguar I-Pace (73.1%), Land Rover Range Rover (70.1%), Nissan Leaf (62.4%), Audi e-tron (60.9%), and Jaguar XF (59.9%). The dynamics of depreciation vary from country to country. While luxury models and electric vehicles lose value the most in Western Europe, in countries where price is a key factor, even economy-class cars can depreciate quickly. ## ## The Toyota C-HR retains value the best The difference in depreciation between models can be significant. Two different cars with similar prices can have completely different market values after a few years. The difference in the secondary market can amount to several thousand euros. The carVertical study showed that among all the models examined in Latvia, the Toyota C-HR retained its value the best, losing 43.7% of its initial price over five years. It is followed by the Volkswagen Passat (46%), Kia Niro (48.2%), Audi A6 (49.5%), and Skoda Octavia (51.3%). "Economy-class models usually retain their value better. This is due to their lower initial cost, inexpensive maintenance, and high demand in the used car market. However, each country has its own peculiarities," explains Buzelis. The rate of depreciation of a car depends not only on its age but also on how attractive it is to the next buyer. If demand is low or the purchase is considered risky, the price will drop more significantly. At the same time, popular and economical cars lose value more slowly. To help drivers assess financial risks, carVertical has included a "Market Value" section in its reports. Based on historical data on prices for similar configurations and forecasts, experts form an understanding of how much a potential purchase will be worth in a few years.