Slowest Depreciating Cars
Corner Park Garages, Swansea and Cardiff
December 13, 2018 at 2:43 PM
Whenever you're buying a car, there are a number of cost implications to consider including the overall price, fuel efficiency, tax, and servicing and maintenance. One thing that most of us don't factor in is the rate of depreciation.
Generally, around 20% of a brand new car's value is lost as soon as you drive if off the forecourt. Although it is almost inevitable that you will make a loss on a car when you come to sell it, knowing which cars have the best residual values could help to save you money in the long run.
We've put together a list of the more affordable and attainable models that will suffer less from depreciation over a typical three year / 36,000 mile duration of ownership on the used car market.
SLOWEST DEPRECIATING SMALL CARS
If you do a lot of city driving, you're likely to want a small car to help you undertake your local travelling. Most manufacturers have a diminutive model to capture the urban market, but some cars hold their value better than others.
The Viva is a basic, no-frills city car that is cheap to buy and run. It comes with very little as standard - even the top of the range model doesn't have a lot of kit. However, according to CAP HPI, it retains 73.5% of its value from new.
Because they aren't very expensive as a new car, you'll be able to pick up a fairly new model on the used market for £5,000 and expect it to still be worth around £3,500 after three years.
The chic and iconic Fiat 500 is the undisputed best-seller from the Italian manufacturer's line-up. After its relaunch in 2007, the model has gone from strength to strength in terms of sales, meaning that there are a lot of options available on the used market.
Fiat have produced 'special' editions by enlisting designers such as Diesel and Gucci to make exclusive 500 models. It is advisable to steer clear of these because they could be harder to sell on if other people don't share your enthusiasm for designer products.
The traditional little British car with German engineering is an extremely popular small model on our roads. Redesigned for the rigours of 21st Century life, the MINI Cooper provides a fun drive, especially for the money you pay.
Mechanically it is very well produced, and repair parts are quite easy to come by. It remains a desirable model that is still very much in demand which helps to keep its residual value higher than majority of its key competitors.
SLOWEST DEPRECIATING MEDIUM / LARGE CARS
If you're looking for a family car that is spacious, comfortable and represents good value for money in the long run, we suggest looking at these models:
Although this is at the more expensive end of the scale, there are three different versions for you to choose from: three-door S3, five-door S3 Sportback and the S3 Convertible. They are in high demand in the used market, so it might be difficult to find one, but it also makes them easier to sell on.
Hot hatches like the S3 tend to lose their value very quickly; however, you can expect this one to retain anywhere from 59% - 64% of the original price you paid. The Black Edition is particularly desirable because of its extensive upgrades that come as standard.
With sporty looks and a sharp driving performance, the Scirocco is a sensible place to put your money (according to CAP). The driving position, practicality and overall design has been a winning formula for owners since 2008.
It's a popular model on the used market thanks to its classy interior and flexible engine range. You can expect to retain around 57% of its value after three years of ownership.
Hybrid technology is relatively new, especially compared to traditional combustion engine models. The Prius is the leading hybrid model on the UK market providing a more environmentally-friendly drive to thousands.
Inside it's surprisingly spacious, particularly considering the amount of technology within. As people get more environmentally conscious and comfortable with hybrid vehicles, the popularity of Prius models on the used market is likely to soar.
SLOWEST DEPRECIATING SUVS AND CROSSOVERS
The unprecedented success of the SUV market has lead to an increase in 4x4 and Crossover models being introduced to the UK. Because there is so much choice, it's important to pick the cars that offer the best residual value.
This pumped-up version of the Mazda 3 hatchback has won a lot of plaudits from the UK motoring media thanks to its smart styling, agile handling and practical cabin. Although it's not the biggest, it provides a raised ride height and ground clearance as well as extra space for a more comfortable journey.
Buyers can expect to retain around 73% of its initial value, only costing £5,170 in depreciation over the course of three years.
Its boxy design isn't the most attractive, but the performance levels that you receive from the Skoda Yeti more than make up for it. In the hugely competitive sector of compact SUVs, this car has a tough, versatile and spacious interior as well as a range of economical engines.
You'll receive excellent residual values of around 65% after a three year ownership period. It's widely recognised as one of the best cars on sale, not just in its class, but overall, making it a desirable model for used car buyers to target.
If you're looking for value in the overall cost, ownership and depreciation, you can't really look passed the Duster. As the cheapest SUV on the market it doesn't provide a particularly luxurious cabin or come packed with expensive extras; however, it is exceptionally practical with a decent sized boot and roof bars as standard.
After owning one for three years, you're likely to lose just over £4,000 in depreciation from new. This figure gets smaller and smaller if you buy a used version making it even more affordable.
SLOWEST DEPRECIATING LUXURY CARS
You might think that the more expensive a car is when it's first sold means that it will retain its value much better and depreciate slower than cheaper models. This is very rarely the case as some luxury models lose a lot of their original worth very quickly when they enter the used market. There are however some exceptions that represent good value for money.
The Macan is one of the most undisputed models when it comes to lacking depreciation. Considering that you would expect a car to lose 20% of its value from new, the Macan keeps around 88%, only losing between £5,000 and £6,000 in its first three years depending on which version you choose.
It is widely regarded as the best car to drive in the compact SUV class making demand for this model very high. You're going to pay a lot to get behind the wheel of one, but you're also going to get a lot back when you come to selling it to a sea of potential buyers.
Range Rover Sport
Popular with footballers and celebrities alike, the Range Rover Sport is a symbol of status and wealth, but it also represents a decent investment for when it comes to selling the car on. You can expect to retain between 71% and 77% of its value.
This large SUV has a refined and well-equipped interior to rival other luxury cars with the advantage of being very capable off-road as it is on it.
Crowned the Auto Express Best Compact Executive Car for three years running between 2015 and 2017, the Jaguar XE provides refinement, comfort and efficient engines. This level of critical acclaim and build quality helps it to a strong residual value, keeping around 77% of its purchase price which represents a loss of just £7,300.
The XE slightly outperforms its big brother, the XF, when it comes to depreciation. It's a sharp looking car with even sharper handling that makes it a desirable car to own from new and used.