European luxury cars are depreciating faster and breaking earlier than their Japanese rivals. Buyers are reporting drivetrain faults, electrical issues and suspension failures starting near 60,000 miles. That’s the turning point.
BMW 7 Series leads the slide. A 3-year-old 7 Series now loses around 52.2% of its value. That drops to 65.7% at 5 years, and 83% by year 10. Insurance premiums add another $24,630 over 5 years. Audi A8 posts 59.5% depreciation at 3 years, and 47% at 5 years with total insurance costs nearing $23,300.
Porsche Panamera is no outlier. Its 3-year drop sits near 57.3%. That’s with resale now below $74,000. At 5 years, it holds just over half its original value. Insurance eats $24,855 during that stretch.
Tesla Model S, while electric, lost 71% in 5 years. It drops to 90% by year 10, scraping resale near $9,800. Insurance isn’t light either. That line costs $23,780 over five years.
Where’s the value? Lexus RX. The brand leads dependability rankings in 2025 with just 140 problems per 100 vehicles. Toyota isn’t far behind at 162. Honda’s Accord runs beyond 100,000 miles without major fault. Lexus RX maintenance averages $1,020 per year. BMW X5 posts $1,740. Honda Accord insurance lands near $1,180. Audi A6 runs $1,960.
Comfort metrics hold up. Lexus interiors outperform leatherette from BMW in wear resistance. Honda keeps cabin noise down. Toyota’s infotainment is stable under load. iDrive freezes persist. Audi MMI still lags under heat.
Prestige fades when value dies. Lexus, Toyota and Honda don’t just cost less. They stay alive longer, stay sharp longer, and hold resale through a decade.
Sources
https://www.motortrend.com/features/most-expensive-cars-to-insure-2025
https://www.autotrader.com/car-news/most-and-least-depreciating-cars-2025
https://www.jdpower.com/cars/shopping-guides/2025-vehicle-dependability-study-results
https://cars.usnews.com/cars-trucks/advice/most-reliable-luxury-cars
https://www.carparts.com/blog/europes-most-overrated-car-models
https://stuff.com/automotive/the-most-reliable-car-brands-of-2025-ranked
https://www.gobankingrates.com/saving-money/car/unreliable-luxury-cars-avoid-buying-2025