Market Insights

Top 10 Cars That Lose Value the Fastest in Australia

Some cars in Australia lose value far faster than others — often due to high running costs, complex repairs, oversupply after lease cycles, or shrinking buyer demand. This guide breaks down the 10 vehicle categories that typically depreciate the quickest (from large European luxury sedans to early-generation EVs and people movers) and gives practical steps buyers can use to avoid “cheap upfront, expensive long-term” purchases.

Updated 10/02/2026 22:13:46 · 4 min read

Not every car holds its value well.

Some models depreciate significantly faster due to running costs, mechanical complexity, supply levels or low demand in the used market.

Understanding these patterns can help buyers avoid models that may be cheap upfront but costly in the long term.

This guide highlights the vehicle types and model patterns that typically experience faster-than-average depreciation across the Australian market.

It is based on observable behaviour across online listings, private sales, dealer trade-in activity and wholesale auctions.

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Important Note Before Reading

This article does not list specific dollar figures or percentages.

Instead, it focuses on categories and model behaviors consistently observed across the Australian market.

Individual vehicles may differ based on condition, kilometers, service history and state demand.

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1. Large European Luxury Sedans

Examples include models commonly seen from brands such as:

• Mercedes-Benz

• BMW

• Audi

• Volvo

Large European sedans depreciate faster because of:

• high servicing and repair costs

• complex electronics

• rapidly aging technology

• low private-market demand once warranty expires

• higher fuel consumption compared with modern SUVs and hybrids

They are often purchased new by corporate fleets or lease customers, then enter the used market in large numbers around the same time, accelerating depreciation.

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2. Premium European Small Cars

These include compact premium hatchbacks or small sedans from:

• Audi

• BMW

• Mercedes-Benz

These vehicles depreciate faster due to:

• competition from more affordable Japanese and Korean options

• expensive parts relative to vehicle size

• lower demand in the private resale market

• complex transmission or electrical systems in some generations

Even when well maintained, demand is limited compared with similarly priced SUVs.

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3. Performance Cars With High Running Costs

Some performance-oriented vehicles experience rapid depreciation because of:

• very high insurance costs

• increased fuel consumption

• expensive maintenance and tyres

• limited buyer pool

Performance models appeal to enthusiasts, but the broader private market may avoid them due to cost of ownership.

This creates wider price drops after the initial novelty period.

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4. Luxury Convertibles

Convertibles often show quicker depreciation due to:

• seasonal demand

• high cost of roof repairs

• lower practicality

• reduced buyer interest outside metropolitan areas

When these vehicles age, they appeal primarily to niche buyers, which means longer selling times and reduced resale value.

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5. Older Diesel Passenger Cars

Non-4x4 diesel passenger vehicles commonly experience faster depreciation because:

• increased complexity in emissions systems

• higher repair costs as they age

• reduced demand in urban areas

• preference shifting toward hybrids and petrol models

Exceptions exist in regional areas, but overall market interest in diesel sedans and hatchbacks continues to decline.

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6. Electric Vehicles From Early Generations

Some early-generation EVs depreciate more quickly due to:

• limited driving range compared with newer models

• battery degradation concerns

• reduced warranty periods

• rapid improvement in newer EV technology

• limited charging infrastructure in regional areas

Newer EV generations may behave differently, but older models face strong pressure on used prices.

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7. Seven-Seat People Movers

People movers often depreciate faster because:

• demand is restricted to specific family use-cases

• many models are sold into fleets

• supply increases sharply after lease cycles end

• large size and fuel consumption reduce broad appeal

While practical, the market for used people movers is much smaller than the SUV market.

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8. Low-Volume European Brands

Brands with smaller market presence may depreciate faster due to:

• limited parts availability

• fewer independent mechanics

• lower brand recognition

• concerns about long-term ownership cost

Examples include brands such as Alfa Romeo or Citroën, which have loyal followers but a limited mainstream buyer pool.

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9. Large Sedans (Non-Luxury)

Traditional large sedans from mainstream brands often depreciate quickly because:

• buyer demand has shifted towards SUVs

• large supply from fleets entering the used market

• higher fuel consumption

• reduced relevance for modern buyers

Even when reliable, this segment struggles in the current Australian market.

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10. Petrol utes With High kilometers and Heavy Use

Unlike diesel 4x4 models, petrol utes used heavily for work often depreciate quickly because:

• they reach high kilometers rapidly

• wear and tear is obvious

• buyers prefer diesel torque and longevity

• tradies and fleets prioritize durability and resale value

The used market distinctly favors diesel for dual-cab utes.

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How Buyers Can Avoid Fast-Depreciating Vehicles

Use the following approach when evaluating a car:

1. Research the model's long-term reliability and maintenance cost

2. Compare similar listings by age, kilometers and location

3. Look for stable resale history across multiple years of models

4. Avoid cars with unusually high supply in the market

5. Favour brands with strong national demand and affordable servicing

6. Use a PPSR/REVS check to eliminate hidden risk factors

7. Compare valuation ranges through AUCN or similar tools

These steps help highlight models with stronger long-term value.

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How AUCN Identifies Faster Depreciation Patterns

AUCN valuation insights rely on:

• model-specific market behaviour

• kilometre and age downside patterns

• typical repair cost triggers

• supply and demand in different states

• known common issues affecting appeal

• depth of listings over time

Rather than predicting a fixed price drop, AUCN identifies the underlying factors that cause faster depreciation.

This provides a more realistic picture for buyers and sellers assessing a vehicle's true position in the market.

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