For those of you who like cars but hate the thought of losing money on them, financial expert Humphrey Yang has some surprising insights about the five worst cars to buy that will kill your wealth, which he shared in a TikTok video.
Owning a car is almost a necessity for most people, but it’s crucial to understand that cars are not investments. Unlike real estate or stocks, cars depreciate in value over time. Some of the worst cars for building wealth depreciate by more than 50% in the first five years.
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Here are the five car models that will kill your wealth, according to Yang.
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Cadillac Escalade ESV
The Cadillac Escalade ESV is a luxury SUV that’s known for its spacious interior and powerful performance. However, it’s also one of the worst cars you can buy if you’re looking to protect your wealth. The Escalade ESV has an average five-year depreciation rate of 58.5%, Yang said in the video.
The average difference from the MSRP is a staggering $63,885. This means if you buy a new Escalade ESV today, you’ll be losing a significant amount of money in just a few years.
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BMW 5 Series Hybrid
The BMW 5 Series Hybrid offers the performance and luxury that BMW is known for, along with the added benefit of being a hybrid. However, its financial impact is less than ideal. The 5 Series Hybrid has an average five-year depreciation rate of 58.8%.
As Yang explained in the video, the average difference from the MSRP is $37,975, making it another poor choice for those looking to build wealth.
Maserati Ghibli
The Maserati Ghibli has an eye-catching design and impressive performance. However, as Yang said, the Ghibli has an average five-year depreciation rate of 61.3%, making it one of the worst cars to buy if you’re concerned about your wealth.
The average difference from the MSRP is $58,623. If you’re in the market for a luxury sedan, there are other options that offer similar levels of luxury without the steep depreciation.
BMW 7 Series
The BMW 7 Series is a symbol of luxury and performance, but it also comes with a steep price tag in terms of depreciation. The 7 Series has an average five-year depreciation rate of 61.8%, and the average difference from the MSRP is $72,444, Yang explained.
Maserati Quattroporte
The Maserati Quattroporte is probably one of the worst cars you can buy if you’re looking to protect your wealth, according to Yang. The Quattroporte has an average five-year depreciation rate of 64.5%, making it the car with the highest depreciation rate on Yang’s list.
The average difference from the MSRP is a whopping $90,588, which is a substantial financial loss.
For those who want the luxury experience without the financial hit, exploring other high-end cars that hold their value better could be an alternative.
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This article originally appeared on GOBankingRates.com: 5 Worst Cars To Buy That Will Kill Your Wealth, According to Humphrey Yang
