Depreciation is any new car owner’s worst nightmare, with cars being notorious for dropping in value as soon as the leave the forecourt of the dealership.
However, not all cars are made equal when it comes to depreciation, with some faring better than others over the course of a few years, or indeed their lifespan. There are also several factors that can influence depreciation including mileage, age, number of owners, fuel economy, condition, reliability and desirability – all of which car owners must keep in mind, if they intend to sell on their vehicle in the future.
To help shed some light on depreciation, the motoring experts at Scrap Car Comparison have researched new and second-hand vehicle prices in the UK, to calculate the average four-year depreciation rate of popular models.
Revealing that the all-electric Renault Zoe is the car model that sees the highest levels of depreciation over four years in the UK. With owners expected to see the value of this specific model drop by 67% during this period, are there some car makes, and models, which could provide better value?
Which car models depreciate quickest?
Despite the Renault Zoe blazing the way as Renault’s pioneering high-volume electric vehicles, and becoming a staple in the consumer EV market over the past twelve years, it tops the list as the car that sees the greatest depreciation over an average four year period – although, this could be great news for anyone hoping to get their hands on an EV second-hand.
Fellow French motor, the Peugeot 2008 follows in second, with an average drop in value of 66% over four years, with the vehicles dipping from their new base price of £23,005 to £15,237 in the same timeframe. Completing the top three is the Audi A3, with the ever-popular hatchback seeing a drop of 65%, with second-hand purchasers able to pick up one of the cars for around £17,406 rather than £26,660.
Interestingly, the luxury Audi A8 also makes it into the top 10 vehicles with the greatest depreciation, falling in sixth place with an average price reduction of 59% after four years. However, including the 2008 in second place, there are a total of four Peugeot models within the topflight, with the brand seeing the greatest average depreciation of its models at 53%. The 5008 (7th), 3008 (9th) and 508 (10th) all lose just over half of their value on average – so if you’re looking for a car that’s going to hold value well, this brand may be one best to avoid.
The Nissan Leaf follows the Renault Zoe as the second all-electric car that sees a significant drop in value, sitting in eighth place overall, with owners seeing 56% of the vehicles value erode within four years.
Which models depreciate slowest?
At the other end of the scale, the Volvo V90 is revealed as the car that holds its value the best, with the model seeing a minor drop in value from £48,825 to £44,955, or £3,870, over four years. The XC60 follows closely behind with a drop of 12%, with second hand models available for around £41,425 rather than the new price of £45,675. The two Volvo models pull slightly ahead of the Mercedes A Class at 14% and the Jeep Wrangler at 18% in fourth position.
The popular Volkswagen models of the Polo and Golf complete the top five, with drops of just 18% and 19% respectively. Despite the German automaker being known for producing good quality, reliable vehicles, the brand isn’t the best overall when it comes to holding value, with Jeep taking this title instead. Tied with the Volkswagen Golf, the Land Rover Range Rover is also revealed to lose an average of around 19% of its value over four years.
David Kottaun, Operations Manager at Scrap Car Comparison adds, “The process of buying a new car often involves a frustrating decision-making process over whether to prioritise practicality or attractiveness over value, with many buyers eventually going with their heads over their hearts.
“Cars are notorious for being tricky investments, with many quickly losing value, but for many people the resale value is definitely something that will play on their mind. The reality is that most people are unlikely to keep hold of a car for its entire life, with many switching vehicles every four years. As a result, it’s worth trying to limit the depreciation that the vehicle may experience, if it is bought in full from a forecourt.
“It’s particularly interesting to see two EV models within the top ten – for many people, the high cost of these cars is one of the main blockers to switching to electric over petrol or diesel, but these depreciation rates go to show that people looking to make the switch could get a good deal on a used model. As more models enter both the new and second-hand markets, prices are only likely to drop further, making it much easier to go green.”
