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Car finance ›
Motoring depreciation
Updated: Wednesday, 23 August 2023
Which car makes and models hold their value the longest?
When people look to buy their car outright or with car finance, it can be an exciting time. In 2022, 1.61 million new vehicles were registered in the UK; despite this being the lowest figure since 1992, it still shows that many brand-new cars are finding their first owners across the country.
With so many people making the big decision to get a new set of wheels, there are many factors that they have to consider. One is depreciation – how well will their car hold its value, and the other is how much they could get for it when it’s time to sell?
To find out the car makes and models that hold their value the best, we have taken a deep dive into depreciation data to discover the average depreciation over 3 years for some of the UK’s most popular new cars.
Car models with the lowest average depreciation rate
1. Abarth 695 and Suzuki Jimny, average 3-year depreciation of 2.12%
Abarth is a subsidiary of Fiat tasked with taking ordinary cars and making them extraordinary. Over the years, Abarth has created some very fun cars, and one of their latest creations is the 695. This hot hatchback is based on the Fiat 500 but has been tuned up to produce 180bhp and has other sporty features to make it much faster than the car it is based on.
The average three-year depreciation of the Suzuki Jimny is identical to that of the Abarth. This small off-road car has been produced by Japanese manufacturer Suzuki since 1970 and has undergone many improvements over the decades. The fourth generation, released in 2018, has been particularly successful, and this model will only lose around 2.12% of its value over three years.
3. Mercedes-Benz A-Class, average 3-year depreciation of 2.55%
The A-Class is the entry-level Mercedes and the cheapest model the German manufacturer produces. It has been produced since 1997 and offers customers to drive a premium brand at a cut price, although the base price of £23,160 is often upped with extras. Over three years, the average A-Class will lose just 2.55% of its market value.
4. Aston Martin DBS Superleggera, average 3-year depreciation of 2.57%
The Aston Martin DBS is the premium grand touring sports car sold by Aston Martin; the latest model is based on the DB11 and is tweaked to be a better version of its sister car. The base price of a brand-new DBS is £225,000; after three years, it will still be worth £219,226 on average.
5. Range Rover Sport, average 3-year depreciation of 2.98%
The Range Rover Sport has the fifth lowest average depreciation rate. The fastest car Land Rover makes only depreciates at a rate of just under 3%, meaning that after three years, the average Range Rover Sport will have only lost owners £1,931. As many footballers have been famous Range Rover Sport owners in the past, the car has been nicknamed the ‘Range Rooney’.
Car models with the highest average depreciation rate
1. Jaguar XF, average 3-year depreciation of 68.31%
The highest depreciating car in our study is the Jaguar XF. On average, the luxury sports saloon loses almost 70% of its value over three years. The base price of the XJ is £34,950, which drops to an average value of just £11,074 after three years.
2. Renault Zoe, average 3-year depreciation of 39.40%
The Zoe is a supermini produced by Renault and their only fully electric small car. Batteries in electric cars tend to deteriorate quickly, so their range can be significantly lower when bought second-hand versus new. Consequently, there is a high level of depreciation compared to small cars powered by fossil fuels, and the average three-year depreciation rate is almost 40%.
3. BMW X3, average 3-year depreciation of 38.78%
The BMW X3 has an average 3-year depreciation rate of 38.78%, meaning its value on average drops from £40,355 to £24,704 after 3 years. The X3 is a luxury four-wheel drive SUV – the mid-sized car in the ‘X range’ of the BMW stable of vehicles.
4. Peugeot 2008, average 3-year depreciation of 38.55%
The Peugeot 2008 SUV has been part of the Peugeot range for a decade. It was first introduced to replace the 207 SW as SUVs began to replace estates in popularity. After three years, the start price of £17,735 reduces to an average value of just £10,899.
5. MG ZS and Audi A3 Saloon, average 3-year depreciation of 37.71%
Another SUV that loses a lot of its value is the MG ZS, losing an average of almost 38% of its original value in three years. The ZS is MG’s best-selling car in international markets, and nearly 20,000 were sold in European markets in 2020.
Equal to the MG is the Audi A3 Saloon, one of the most popular models made by the German manufacturer. The A3 has been in production for 27 years, having been launched in 1996. The base price of the A3 is £24,445, and after three years, the average price will be £15,227.
Methodology
To find the value of new cars sold in the UK, we used data from Car Pages supplemented by manufacturers’ websites.
We then used a depreciation calculator to calculate the value of the makes and models after three years (removing any models for which data was unavailable).
We then calculated the depreciation rate over the three years, taking an average of 5,000 miles per year, as the UK average mileage is 5,398 miles according to ByMiles.
This data is accurate as of 7th August 2023.
Which car makes and models hold their value the longest?
When people look to buy their car outright or with car finance, it can be an exciting time. In 2022, 1.61 million new vehicles were registered in the UK; despite this being the lowest figure since 1992, it still shows that many brand-new cars are finding their first owners across the country.
With so many people making the big decision to get a new set of wheels, there are many factors that they have to consider. One is depreciation – how well will their car hold its value, and the other is how much they could get for it when it’s time to sell?
To find out the car makes and models that hold their value the best, we have taken a deep dive into depreciation data to discover the average depreciation over 3 years for some of the UK’s most popular new cars.
Car models with the lowest average depreciation rate
1. Abarth 695 and Suzuki Jimny, average 3-year depreciation of 2.12%
Abarth is a subsidiary of Fiat tasked with taking ordinary cars and making them extraordinary. Over the years, Abarth has created some very fun cars, and one of their latest creations is the 695. This hot hatchback is based on the Fiat 500 but has been tuned up to produce 180bhp and has other sporty features to make it much faster than the car it is based on.
The average three-year depreciation of the Suzuki Jimny is identical to that of the Abarth. This small off-road car has been produced by Japanese manufacturer Suzuki since 1970 and has undergone many improvements over the decades. The fourth generation, released in 2018, has been particularly successful, and this model will only lose around 2.12% of its value over three years.
3. Mercedes-Benz A-Class, average 3-year depreciation of 2.55%
The A-Class is the entry-level Mercedes and the cheapest model the German manufacturer produces. It has been produced since 1997 and offers customers to drive a premium brand at a cut price, although the base price of £23,160 is often upped with extras. Over three years, the average A-Class will lose just 2.55% of its market value.
4. Aston Martin DBS Superleggera, average 3-year depreciation of 2.57%
The Aston Martin DBS is the premium grand touring sports car sold by Aston Martin; the latest model is based on the DB11 and is tweaked to be a better version of its sister car. The base price of a brand-new DBS is £225,000; after three years, it will still be worth £219,226 on average.
5. Range Rover Sport, average 3-year depreciation of 2.98%
The Range Rover Sport has the fifth lowest average depreciation rate. The fastest car Land Rover makes only depreciates at a rate of just under 3%, meaning that after three years, the average Range Rover Sport will have only lost owners £1,931. As many footballers have been famous Range Rover Sport owners in the past, the car has been nicknamed the ‘Range Rooney’.
Car models with the highest average depreciation rate
1. Jaguar XF, average 3-year depreciation of 68.31%
The highest depreciating car in our study is the Jaguar XF. On average, the luxury sports saloon loses almost 70% of its value over three years. The base price of the XJ is £34,950, which drops to an average value of just £11,074 after three years.
2. Renault Zoe, average 3-year depreciation of 39.40%
The Zoe is a supermini produced by Renault and their only fully electric small car. Batteries in electric cars tend to deteriorate quickly, so their range can be significantly lower when bought second-hand versus new. Consequently, there is a high level of depreciation compared to small cars powered by fossil fuels, and the average three-year depreciation rate is almost 40%.
3. BMW X3, average 3-year depreciation of 38.78%
The BMW X3 has an average 3-year depreciation rate of 38.78%, meaning its value on average drops from £40,355 to £24,704 after 3 years. The X3 is a luxury four-wheel drive SUV – the mid-sized car in the ‘X range’ of the BMW stable of vehicles.
4. Peugeot 2008, average 3-year depreciation of 38.55%
The Peugeot 2008 SUV has been part of the Peugeot range for a decade. It was first introduced to replace the 207 SW as SUVs began to replace estates in popularity. After three years, the start price of £17,735 reduces to an average value of just £10,899.
5. MG ZS and Audi A3 Saloon, average 3-year depreciation of 37.71%
Another SUV that loses a lot of its value is the MG ZS, losing an average of almost 38% of its original value in three years. The ZS is MG’s best-selling car in international markets, and nearly 20,000 were sold in European markets in 2020.
Equal to the MG is the Audi A3 Saloon, one of the most popular models made by the German manufacturer. The A3 has been in production for 27 years, having been launched in 1996. The base price of the A3 is £24,445, and after three years, the average price will be £15,227.
Methodology
To find the value of new cars sold in the UK, we used data from Car Pages supplemented by manufacturers’ websites.
We then used a depreciation calculator to calculate the value of the makes and models after three years (removing any models for which data was unavailable).
We then calculated the depreciation rate over the three years, taking an average of 5,000 miles per year, as the UK average mileage is 5,398 miles according to ByMiles.
This data is accurate as of 7th August 2023.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
