Vehicle ROI in 2025: Cars That Lose the Most Resale Value

By Paul Davenport
February 20, 2025

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If you’re one of the millions of Americans who drives for work every day, choosing the right vehicle for the job is key to your success. After all, you need a car that not only can get you from A to B, but offers the comfort, flexibility and durability that your role demands.

But when it comes to purchasing a car, you don’t need to be a ‘driving employee’ to appreciate how important resale value is.

Whether you’re enrolled in an employee reimbursement program, drive a fleet vehicle, or just commute to the office a few days a week, understanding the long-term ROI of your “daily driver” will have a big impact on your driving habits in-kind—and, in some cases, how you’re compensated.

If you manage or administer a vehicle program, getting a clear understanding of potential vehicle depreciation—that is, spreading “the cost of a tangible or physical asset[…] over its useful life” — is a key to justifying the use of one driving employee strategy over another.

In this blog, we’ll break down some of the vehicles that show the highest depreciation in 2025, as well as key considerations for drivers and businesses when choosing the best brands and models for both work and leisure.

But first, personal choice vs. Company Cars

Before laying out which models lose their value fastest, it’s important to contextualize how different facets of depreciation come into play depending on the vehicle program that your company administers.

Accounting for scale

For an old-school fleet program, for instance—where employees are provided with a company car—factors of scale are most important. This includes the upfront costs for buying or leasing a specific model, at a set price point, and across a set number of employees.

In this context, administrators also need to consider the roles served by their vehicle program, along with the salaries for certain driving roles, and even the variability of titles and responsibilities across the driving workforce.

If a hard-won (and highly valued) field rep requires a luxury company car to be won over in a competitive job market, for instance, businesses will likely be more willing to splurge. That won’t be the case for a fleet of delivery drivers in a high-churn industry or vertical, however, or for folks who only drive for work intermittently.

Letting employees decide

On the flip side of traditional fleets, more and more driving employees are seeking choice in the vehicle they use for work. This has driven the fast adoption of reimbursement programs—ie. the tax-advantaged Fixed and Variable Rate (FAVR) model approved by the IRS—that allows employers to dictate pricing and insurance tiers based on cost-of-living and driving factors. In the FAVR scenario, employees are pretty much given carte blanche to choose the best vehicle for their needs within the parameters of their employer’s unique FAVR model.

In this personal choice scenario, however, employees are wise to consider the resale value alongside the initial MSRP of their vehicle to ensure that their reimbursements stay in line with the true costs of driving. If they choose a vehicle that comes at a premium up front (ie. Above the FAVR program’s target MSRP) but quickly depreciates, for instance, that employee could see their reimbursements lag behind the true cost of driving.

For a deeper dive into how the FAVR program enables personal choice, read our guide here.

Top Depreciating Models and Brands

While there is a lot more at play when it comes to determining the best vehicles for a given program, here is a rundown of the models that lose their value fastest in 2025.

Not-so-economic ‘economy’ cars

Despite solid performance and general reliability, Volkswagen models have struggled with high resale value depreciation in recent years.

Volkswagen Passat: While the Passat was once considered almost the gold-standard of sensible sedans—delivering European style at domestic-economy prices—Volkswagen has had an uphill battle in recent years rebuilding their reputation after an emission test cheating scandal in 2015. While a new model MSRPs for roughly $25K, resale on recent editions only average roughly $15k.
Hyundai Sonata: These models are notoriously reliable, and have famously been sold alongside 10-year, 100,000-mile warranties at an affordable $30K base price. As a result, most owners hold onto these models far longer than similar sedans, exhausting the car’s useful lifespan in the process and resulting in a resale of roughly half the original MSRP.
Kia Optima: This model was rightfully discontinued in 2020 as more fuel efficient and powerful sedans came ono the economy car market—despite originally gaining popularity for sleek looks and roughly $30k price tag. Because the Optima was so quickly lapped by the competition, the average resale value of the 2020 edition sank 37 percent after just one year.

Cute, but no bargain

Volkswagen Beetle: Akin to the Optima, the resale value of the last-generation 2019 Beetle has also seen its value depreciate by about 37 percent after one year of ownership. What dings the resale value of these so much is how much customizability goes into each model—which to begin with, is by default considered an ‘acquired taste’ for many daily commuters.
Nissan Leaf: Not only is the Leaf among the most popular electric cars on the market—and for good reason, given its 147-horsepower capabilities on 212 miles of range. But it also benefits from a government tax credit upon purchase of a new model that automatically takes between $3K-$8K off the starting MSRP—deeply undercutting the resale potential in the short term.

Big car, small ROI

Large luxury SUVs are not only expensive to fuel, but maintenance and repair costs play a big role in their resale value depreciation in the short- and long-term.

Infiniti QX80: For those than can afford it, the QX80 is chock-full of ammenities that make for a smooth, luxurious ride. But as one of the newest entrants into a well-established luxury SUV market, the pool of buyers for a new model is already small—driving depreciation of more than 50% percent within just a few years
Cadillac Escalade ESV: While the Escalade marquee remains a powerful standalone sub-brand of the Cadillac line, the ESV variant may be too big for its own good. Along with being larger than most other trucks in its segment—demanding more gas per trip than its peers as a result—the ESV model also suffers from at least 50 percent depreciation after just a few years on the road.
GMC Yukon: Built on the same platform as the Escalade, the GMC Yukon is a more cost-effective alternative that still delivers a wide array of practical and luxury features. Still, with many legacy models only tracking 15 mpg, the current estimated depreciation of 33% after the first year will only ramp up as drivers continue to embrace hybrid and electric models.

Performance at a cost

Chevrolet Camaro: Arguably no one buys a Camaro for its practicality. But with a base price of $25K, drivers could do a lot worse than this Chevy when it comes to bang-for-the-buck in terms of pure performance. But with high maintenance and repair costs alongside the high customizability that limits the buyers in a secondary market, most Camaros depreciate about 39 percent after only one year.
Dodge Charger: While the Charger at least has four doors compared to the Camaro’s two, it also beats the Chevy in depreciation, losing 45% of it’s value in just a few years. This is also attributable to high-maintenance costs and customizability that could turn off a more practical buyer.
Ford Mustang: Compared to the Challenger and Camaro, the Mustang’s long-term depreciation follows a unique trajectory: While new models are proven to depreciate by 47.2 percent after just three years, older models—5-years-plus—actually tend to hold onto their value, with ‘classic’ versions punching higher within specialty markets. Still, for driving employees, the Mustang will not be a cost-effective short-term solution.

The true price of luxury…

BMW 5-Series Hybrid: While BMWs are notorious for their craftsmanship and quality, they are also by default more expensive to repair for domestic drivers. This is even more true for the 5-Series Hybrid, which is getting usurped in the resale market by more affordable and fuel-efficient models, as well as a rapid rise in luxury EVs. This results in average 30-40 percent deprecation in the first few years of ownership that will only grow as the legacy Hybrid drivetrain becomes more expensive to maintain.
Audi A8: Unlike the 5-Series Hybrid, the A8 isn’t known for having an amazing fuel economy. It has, however, been a popular full-size option for families that delivers luxury and spacious accommodations without the fuel costs of an SUV. Still, as fuel economy becomes a priority for individuals and businesses—and memories of the Volkswagen emissions scandal continues to dog Audi’s parent company—these models lose about half its value over the first five yearsw.
Jaguar XF: For newer Jaguars, the factors that tend to make these models attractive—exclusivity, unique features—are also what make these models hard to maintain. Add in reliability concerns that have tainted the brand in recent years, and the XF model sees its value depreciate 40-50 percent after just a few years on the road.

While these models are just a few that you should be wary of when shopping for your next vehicle—whether for work or just to get around—depreciation is just one factor that you need to consider when making such an important buying decision.

To learn more about how resale value factors into some of the most popular corporate vehicle programs available for businesses today, talk to an expert from the Motus team.

2025 Vehicle Depreciation: Essential FAQ for Buyers

Q1: What Are the Fastest-Depreciating Economy Cars?

Volkswagen Passat: 40% drop, $25K to ~$15K
Hyundai Sonata: 50% depreciation from $30K MSRP
Kia Optima: 37% value loss after first year
Common factors: Brand reputation issues, market competition, reliability concerns

Q2: How Do Electric and Specialty Vehicles Hold Value?

Nissan Leaf: Significant depreciation due to tax credit impact
Volkswagen Beetle: 37% depreciation after one year
Key factors: Government incentives, customization levels, market demand
Electric vehicle depreciation often accelerated by evolving technology

Q3: Which Luxury SUVs Lose Value Fastest?

Infiniti QX80: 50%+ depreciation within first few years
Cadillac Escalade ESV: 50% value loss in early years
GMC Yukon: 33% depreciation after first year
Common issues: High fuel consumption, maintenance costs, market shifts toward efficiency