Introduction
The Cadillac CT5 has established itself as one of America's favorite luxury sport sedans since its debut in 2019. With sharp styling, lively performance, and a high-quality ride, it quickly became a popular choice in the midsize luxury segment. The V-Series trims, especially the CT5-V Blackwing with a 668-horsepower supercharged V8, added serious performance credibility. However, like most vehicles, the CT5 has experienced significant depreciation over a five-year period. For used car shoppers, that's actually good news: today's prices make the 2021 CT5 an appealing bargain.
How Much Has the 2021 CT5 Depreciated?
According to Kelley Blue Book, the 2021 Cadillac CT5 originally started at an MSRP of $38,190 for the base model. Five years later, the national average purchase price has dropped to $23,900, representing a depreciation of 37.4%. This means a buyer who purchased a base CT5 for the full sticker price would see its value drop by more than a third in half a decade.
Interestingly, the Premium Luxury trim has lost slightly more, coming in at 39.4% depreciation over the same period. That's a difference of two percentage points, which might be explained by the higher initial price and the fact that many Premium Luxury models are loaded with optional equipment that doesn't add much to resale value. The higher-performance trims, however, tell a different story.
Sport and V-Series Hold Value Better
The CT5 Sport has retained its value much better, with a loss of only 30.4%, while the CT5-V has lost just 30.2% of its original value. These trims benefit from stronger enthusiast demand and limited supply, particularly the V-Series models. Used car buyers are willing to pay a premium for the exclusive powertrains and performance features that these trims offer, which helps offset the usual depreciation curve.
CarEdge's Independent Estimates
CarEdge, another source for used-car valuation data, puts the 2021 CT5's five-year depreciation at 38.7%. Their model assumes an average asking price of $44,528 five years ago, which means the average resale value today is about $27,279. This is in line with KBB's numbers, although slightly higher due to a different calculation method. The takeaway is consistent: the CT5 loses roughly 37% to 39% of its value in the first five years.
It's worth noting that these figures are based on national averages. Actual depreciation can vary depending on condition, mileage, location, and how well the car has been maintained. A pristine, low-mileage CT5 will hold its value better than a high-mileage example with signs of wear.
How the CT5 Compares to Rivals
Depreciation isn't unique to the CT5. To understand how well it holds its value, we need to look at its main competitors from the 2021 model year. CarEdge's data shows that the CT5 actually outperforms most of its rivals in this regard.
- 2021 Acura TLX: The TLX lost 36.8% of its value after five years, making it the only compact luxury sedan that fared better than the CT5. Its reputation for reliability and slightly lower initial pricing helped it retain value.
- BMW 3 Series: The 3 Series suffered a 47.1% depreciation rate, a significant drop compared to the CT5. The BMW badge doesn't shield it from steep value loss in the used market.
- Genesis G70: The G70's value declined by 44.4%, also well below the CT5's retention. Even with excellent warranties, Genesis has struggled to maintain resale values.
- Audi A5 Sportback: The A5 Sportback lost 43.3% of its value, a little better than some rivals but still more than the CT5.
- Alfa Romeo Giulia: The Giulia has the worst resale value among the major contenders, with a staggering 59.8% depreciation since 2021. Its niche appeal and questionable reliability reputation have taken a toll.
CarEdge doesn't provide a direct estimate for the 2021 Mercedes-Benz C-Class, but based on its starting MSRP of $42,650 and the current KBB fair purchase price of $21,800, the base model's five-year depreciation works out to roughly 49%. That's far more than the CT5's loss. The C-Class is a popular vehicle, but German luxury sedans often suffer from high maintenance costs that depress used values.
Why Higher Trims Hold Value Better
The data reveals a clear trend: the more focused and performance-oriented the CT5, the better it holds its value. The CT5-V, with its 360-horsepower twin-turbocharged V6, and the range-topping CT5-V Blackwing with the 668-hp supercharged LT4 V8, command a strong following in the used market. These models are not only more desirable but also have a limited supply, which supports their retained value. If you're in the market for a used CT5 and want the best resale value down the road, opting for a Sport or V-Series trim is the smart play.
What This Means for Used Car Buyers
For buyers, the 2021 CT5's depreciation is a double-edged sword. If you're buying new, you'll take a significant hit in the first five years—an expected cost of luxury car ownership. But if you're buying a five-year-old CT5, you get a well-equipped luxury sports sedan for roughly 60% of its original price, or even less for lower trims. That's a compelling value proposition, especially when you consider the car's performance and handling capabilities.
It's also worth noting that the CT5's depreciation is relatively moderate compared to its peers. While no luxury car is an investment, the CT5 at least doesn't hemorrhage its value as quickly as a Giulia or a C-Class. For those looking to maximize their dollar, a lightly used 2021 CT5 offers a lot of car for the money. The base and Premium Luxury trims are particularly attractive if you can live without the extra power, as they offer the biggest discounts from original MSRP.
Final Thoughts
The 2021 Cadillac CT5 has proven to be a solid value in the used luxury sedan segment. With a five-year depreciation rate of around 37% to 39% depending on the data source, it holds its value better than most German rivals and only trails the Acura TLX among its direct competitors. If you're in the market for a 2021 model, the base and Premium Luxury trims offer the biggest bargains, while the Sport and V-Series provide better long-term value retention. Either way, the CT5 remains a strong choice for those who want a sporty, sharp-looking sedan without paying new-car prices.
This article is based on reporting by Jalopnik. Read the original article.
Originally published on jalopnik.com
