A new study found that the Cadillac XT5 is the worst vehicle in its segment when it comes to holding its value over a five-year period. The analysis notes that, generally speaking, vehicles in the luxury segment were among the worst with regard to holding value. That said, overall five-year depreciation has improved across multiple auto segments compared to 2019.
The recent analysis was published by iSeeCars, and is based on data collected from more than 1.1 million vehicle sales. The sales were recorded between November of the 2022 calendar year and October of the 2023 calendar year and used to determine average five-year depreciation rates. Notably, the analysis did not include heavy-duty trucks, vans, low-volume models, or models that are no longer in production as of the 2022 model year. In addition, the five-year depreciation data is based on MSRPs that were adjusted for inflation to 2023 dollars, as based on U.S. Bureau of Labor Statistics.
According to the analysis, the Cadillac XT5 topped the list of the top five small SUVs with the highest five-year depreciation rate, losing an average of 53.9 percent of its value during the given time period. The average small SUV depreciation rate was recorded at 38 percent. Second on the list was the Alfa Romeo Stelvio at 52.3 percent, followed by the Jaguar F-Pace at 51.8 percent, the Audi Q5 at 51.6 percent, and the Audi SQ5 at 50.2 percent.
As iSeeCars points out, luxury SUVs and sedans were among the vehicles with the worst depreciation. Across all segments, luxury vehicles lost an average of 48.1 percent in value over five years as compared to 38.8 percent and 36.8 percent for non-luxury vehicles. Depreciation gets even worse for large luxury models like the Cadillac Escalade. Per the analysis, the extended-length Cadillac Escalade ESV was ranked fifth in the list of the top 25 vehicles with the worst depreciation rates, losing on average 58.5 percent of its value, or $63,885. Meanwhile, the standard-length Cadillac Escalade was ranked twelfth, losing on average 56.5 percent of its value, or $59,093.
That said, the average depreciation rate fell for all segments compared to 2019, with hybrids and trucks now showing the lowest average depreciation rates (37.4 percent and 34.8 percent, respectively).