When it comes to investing in cars, many people think of exotic sports cars or vintage classics as the best options. However, the reality is that luxury SUVs offer some of the highest return potentials for car investors in 2023. With the global popularity of SUVs continuing to rise and new high-end models hitting the market, luxury SUVs provide the perfect blend of practicality, desirability and strong resale value. In this article, we will analyze why luxury SUVs like the Range Rover, Mercedes G-Class and BMW X7 represent the best cars to invest in today.
Luxury SUV sales continue record growth
According to data from IHS Markit, global sales of luxury SUVs and crossovers reached over 2 million units in 2018, a 15% increase from the previous year. Brands like Lamborghini, Rolls-Royce and Aston Martin have all introduced ultra-luxurious SUV models in recent years to tap into this rapidly expanding segment. As more affluent consumers in North America, China and the Middle East opt for SUVs as their primary family vehicle, demand has outpaced supply even with many automakers rushing new models to market. This supply-demand imbalance means luxury SUVs will likely hold their value better than other vehicle types when reselling.
Ideal combination of practicality and prestige
For many wealthy buyers, especially those with families, luxury SUVs present the perfect combination of spacious practicality and prestige. Premium SUVs coddle passengers in opulent, leather-lined cabins while providing generous cargo capacity and available 3rd row seating. Brand cachet is also strong, with luxury badges like Range Rover and Mercedes-Benz G-Class commanding admiration and desirability. For investors, this blend of family-friendly utility and status symbol appeal creates strong demand in both new and used car markets.
Low depreciation retains value
Exotic sports cars typically experience high depreciation as they age, reflecting quickly evolving technologies and styling. Luxury SUVs, however, hold their value exceptionally well in the secondary market due to lower production numbers and more timeless design. Models like the Jeep Grand Cherokee Trackhawk are expected to retain over 60% of original MSRP after 5 years. With high demand from emerging markets too, used luxury SUVs can often sell for nearly as much as new. This makes them one of the least depreciating vehicle categories.
New high-end luxury SUVs raise the bar
Luxury automakers are continually raising the bar in terms of performance, comfort and styling with new top-shelf SUV introductions. Take the Lotus Eletre hyper-SUV, the Ferrari Purosangue or the Aston Martin DBX707 – these 500+ hp SUVs push boundaries and create even stronger desirability for the segment. As the most aspirational and well-equipped SUVs, they help boost residuals across the entire category. For investors seeking a balance of practicality and blue-chip exotic car aura, the latest luxury SUVs are quite appealing.
In today’s booming SUV marketplace, luxury models represent the most promising segment for car investors seeking minimized depreciation risk and strong residual values. Combining practicality with prestige and exclusivity, high-end SUVs from the top brands are seeing record sales globally. For these reasons, cars like the Range Rover and Mercedes G-Class are poised to deliver some of the highest investment returns in 2023 and beyond.