Almost everything about a Cadillac Escalade is big, from its 227-inch length (for the Escalade ESV) to its price tag ($162,500 plus $2,195 destination charge for the V-Series) to the shadow it casts over the rest of the luxury SUV market. Also large? The rate at which the Escalade depreciates over five years.
Now, you have to keep in mind that depreciation isn't an exact science, but Kelley Blue Book, for example, indicates that a 2020 Cadillac Escalade, in its Luxury Sport trim with four-wheel drive, will have depreciated by over 55% after five years on the road. That means going from a reported price of $85,090 down to a vehicle value of $37,899 during that time. As another data point, CarEdge, using an unknown trim level, site pegs the SUV's five-year depreciation rate at 56%.
But what's actually happening here? Depreciation is an accounting concept that, in theory, represents how much of a vehicle is "used up" by the wear and tear of passing time.
Read more: 2025 Cadillac Escalade IQ Is All About Big Numbers
Cadillac Escalade Depreciation Compared To Other SUVs
There's no getting around the fact that a Cadillac Escalade will see a significant chunk of its original value disappear after five years. However, that's the same for most cars. In fact, if you check out the iSeeCars list of fastest-depreciating large SUVs, the Escalade/Escalade ESV clocks in at 61.8% — in a segment where the overall average depreciation rate is 57.3%.
And if you run through the slowest-depreciating large SUVs, all except for the Mercedes-Benz G-Wagen — an outlier with a depreciation rate of just 38.8% — are in the range between 52.4% and 55.9%. Which just goes to show that the Escalade, despite the absolute value it loses in terms of dollars, is really just a tad above average in terms of its depreciation rate.
How about the other body-on-frame full-size luxury SUVs? Again going with iSeeCars, you'll see that the Infiniti QX80 depreciates by 65% after five years and the Lincoln Navigator L by 60.3%. The regular-length Navigator isn't listed, and nor is the refreshed 2025 Lexus LX that gained its first hybrid powertrain in this year's model. On the other hand, the 2024 Lexus LX600 depreciated by a mere 42% per the previous year's CarEdge data. The Land Rover Range Rover, for what it's worth, endured a 62.9%value drop according to iSeeCars.
What About Cadillac Escalade IQ Depreciation?
There's also a new Cadillac Escalade in town, one that ditches the regular Escalade's V8 power for an all-electric powertrain. Backed by dual-motor all-wheel drive and a battery pack of more than 200 kWh, the Escalade IQ showcases 750 horsepower, 785 pound-feet of torque, 0-to-60 times of under 5 seconds, and a Cadillac-estimated range of 460 miles.
The IQ also boasts the impressive tech and luxury cues of its gas-engined sibling, including Super Cruise hands-free driving. Super Cruise definitely has its quirks, but we consider it one of the best systems of its type. Sixteen-way heated and ventilated massaging power seats, an available 36-speaker AKG sound system, standard 24-inch wheels sporting 35-inch tires, and a 55-inch display that goes from pillar to pillar across the cabin's front are among the other highlights.
CarEdge projects the Cadillac Escalade IQ to depreciate by 55% after five years. It's a little less than the depreciation rate of the gas-powered Escalade and a lot more of a surprise: Electric vehicles generally lose value much quicker than internal-combustion counterparts, with some EVs depreciating $600 a day. The good news is that wild EV depreciation means you can get some great deals on used models.
Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox...
Read the original article on Jalopnik.
Comments