The best cars for depreciation - and the worst

By far the biggest expense of almost any new car will be depreciation. That’s the amount of value it starts to lose from the moment
you drive it away from the showroom.

To help you choose a model that won’t put a massive hole in your finances, we’ve used our residual value data to reveal the
10 models that hold on to the highest percentage of their original price in the first three years, and the 10 that retain the least.
All figures are based on the trade-in value for an example that has covered 36,000 miles.

Let's start with the slowest depreciating cars:

Slideshow story - please click the right-hand arrow above to continue

List price £71,110 Resale value £40,925 Price drop £30,185

RETAINED VALUE 57.6%

The Cayenne SUV was viewed as an affront to sports car enthusiasts when it first went on sale in 2002, yet it’s now one of Porsche’s best-selling models, alongside the smaller Macan. Fine handling and strong performance are its key strengths, but buyers will also be pleased that it holds on to its value well.

List price £49,990 Resale value £29,100 Price drop £20,890

RETAINED VALUE 58.2%

Not only is the Model 3 Tesla’s most affordable car, but it’s also its best. As an added bonus, our current
Large Electric Car of the Year holds on to its value better than the main rival, the Polestar 2. Once you factor in Tesla’s fast, well-maintained public charging network, it’s not difficult to see why the Model 3 is on this list.

List price £53,910 Resale value £31,950 Price drop £21,960

RETAINED VALUE 59.3%

Land Rover has made the new Defender even more desirable than the iconic original by creating a model that’s much better on the road, and just as capable off it. The long-wheelbase 110 version can be bought as a seven-seater and is more practical than the three-door 90. It’s also the best model for depreciation.

List price £42,400 Resale value £25,150 Price drop £17,250

RETAINED VALUE 59.3%

With the launch of the Evoque in 2011, Land Rover shook up its image by targeting a younger, more fashion-conscious crowd. The second-generation model features a high-quality interior, along with frugal mild hybrid and plug-in hybrid engines to appeal to non-diesel advocates. Like the original, it’s the best family SUV for residual values.

List price £86,835 Resale value £52,800 Price drop £34,035

RETAINED VALUE 60.8%

The Porsche 911 is without doubt the greatest sports car for those who want a dash of practicality as well as seriously rapid performance and an interior that doesn’t feel stripped out like a race car’s. It’s also remarkably easy to live with. All
versions hold their value exceptionally well, even the entry-level version.

List price £83,635 Resale value £50,950 Price drop £32,685

RETAINED VALUE 60.9%

The Taycan was the first pure electric car to provide real driving pleasure. While rivals offer straightline acceleration that’ll throw your head into the headrest, they’re underwhelming on twisty A-roads. It’s also practical, with space for four adults and
a reasonable boot, and it holds its value better than any other electric car, including the Tesla Model 3.

List price £59,155 Resale value £36,625 Price drop £22,530

RETAINED VALUE 61.9%

The original Alpine A110 won the first World Rally Championship in 1973, and this modern incarnation is one of the most entertaining sports cars you can buy. It regularly beats equivalent four-cylinder versions of the Porsche Cayman in our group tests, offering sprightly performance and nimble handling, as well as impressively strong resale values.

List price £60,905 Resale value £38,000 Price drop £22,905

RETAINED VALUE 62.4%

The Macan may be smaller than the Cayenne, but it’s even more rewarding to drive. Even though it’s practical enough to transport a family, it’s still seriously fast and fun. You need to opt for air suspension to get the best handling, but with such strong residual values, you’ll get back a fair chunk of your original outlay when you sell it on.

List price £174,711 Resale value £110,150 Price drop £64,561

RETAINED VALUE 63.0%

The Urus blends jaw-dropping pace with comfort and enough practicality to be usable every day. It’s also mind-bogglingly fast with clever technology and ultra-wide tyres that ensure it sticks to the road like a limpet, yet it has a compliant ride and a
hushed interior. It’s eye-wateringly expensive new, but you’ll get a fair chunk back after three years.

List price £78,495 Resale value £56,800 Price drop £21,695

RETAINED VALUE 72.4%

The Cayman is proof that you don’t have to break the bank to get a great sports car that’ll hold on to much of its original value after three years. The GT4 is the pinnacle of the Cayman line-up, but lesser versions also hold on to their value better than rival
cars. It’s a joy to drive and those with six-cylinder engines have a glorious soundtrack.

So that's the slowest depreciating cars - what about the fastest?

List price £37,005 Resale value £12,500 Price drop £24,505

RETAINED VALUE 33.8%

The Spacetourer is a large van-based MPV that can seat up to nine people in Business M form. Sadly, the interior quality and handling are likely to disappoint anyone who is used to driving a regular MPV, and its poor residual value will leave anyone
who buys one new with less cash than they might expect after three years.

List price £23,675 Resale value £7900 Price drop £15,775

RETAINED VALUE 33.4%

The Astra is one of the most popular cars on our roads, but that, along with sizeable discounts when bought new, means it’s also one of the worst for depreciation. While it’s a roomy, down-to-earth family hatchback, new car buyers are shying away from
diesels and that compounds the drop in value suffered by this particular version.

List price £45,385 Resale value £15,075 Price drop £30,310

RETAINED VALUE 33.2%

The 2 Series is a comfortable and fun-to-drive convertible with a compliant ride and sharp handling. It’s not as well-appointed inside as an Audi A3 Cabriolet, though, and doesn’t retain its value as well as its German rival either. The M240i and other higher-spec versions are pricey new and prone to the heaviest depreciation.

List price £27,975 Resale value £9200 Price drop £18,775

RETAINED VALUE 32.9%

MPVs aren’t particularly popular these days, and that means they struggle to hold on to their value. The Active Tourer is, strictly speaking, a five-seater, so it’s not as practical as the larger 2 Series Gran Tourer, which is available with seven seats. On the plus side, the 2 Series is roomy, well finished and decent to drive.

List price £89,235 Resale value £29,325 Price drop £59,910

RETAINED VALUE 32.9%

The SL is due to be replaced this year, and with the new version promising to be lighter, faster and more engaging to drive, the heavy outgoing model is expected to be difficult to shift from showrooms. Although substantial discounts are available on
new examples of the current car, they won’t be enough to counteract its steep depreciation.

List price £12,785 Resale value £4000 Price drop £8785

RETAINED VALUE 31.3%

The 108 looks rather like a dying breed as car makers rush to replace petrol-powered city cars with electric and hybrid models. The 108 is cheap to run and well-equipped, but it’s not green enough to qualify for an exemption from low-emissions driving
zone charges, and you’re unlikely to think it’s such good value when it’s time to sell it on.

List price £125,010 Resale value £36,800 Price drop £88,210

RETAINED VALUE 29.4%

Along with its saloon and cabriolet stablemates, the S-Class Coupé represents the pinnacle of luxury and technology within the Mercedes range, showcasing all the latest innovations. However, you pay an especially hefty price for all that high-tech
wizardry if you opt for Grand Edition trim, and that only makes the depreciation situation worse.

List price £15,910 Resale value £4650 Price drop £11,260

RETAINED VALUE 29.4%

The 1.0-litre petrol 500 has mild hybrid technology, but you can’t plug it in and it can’t travel on pure electric power like the latest 500 models can. The pricey cabriolet version is worth even less than the hatchback after three years, although neither of them manages to hold on to a third of its new price.

List price £28,260 Resale value £8150 Price drop £20,110

RETAINED VALUE 28.8%

The van-based Combo Life can seat seven adults, but it has a cheap-feeling interior and can’t compete with the likes of the Ford S-Max and Volkswagen Touran when it comes to handling or refinement. It may be cheaper to buy new than these rivals, but buyers will lose out more when it’s time to sell it on.

List price £106,305 Resale value £28,975 Price drop £77,330

RETAINED VALUE 27.3%

The A8 is a quick, handsome and extremely well-built luxury saloon, and its interior is a lovely place to spend time, whether you’re driving yourself or being driven. However, despite its many qualities, it drops in value like a lead balloon, especially if you opt for one of the priciest models, such as this Vorsprung version.

“The biggest impact on resale values is if there’s an oversupply of a particular model,” says Derren Martin, head of valuations at CAP HPI. “If a car maker pre-registers lots of examples of one model or sells a large number to car rental companies with big
discounts, this will adversely affect second-hand values.”

In contrast, if a car is sought after, values should remain strong, as is the case with SUVs, which have better resale values than MPVs. A car’s brand also has an effect. “With estate cars, some retain their value well and others don’t,” says Martin.
“Sales volumes are low, so there aren’t many on the second-hand market, and that means those that are in demand, such as the BMW 3 and 5 Series Touring, hold on to their value well, unlike more mainstream models.”

“There’s a group of people known as ‘accidental savers’ [during the pandemic], who are driving fewer miles a year than before and have spent less on holidays, socialising and the like, so they have more disposable income. Many of them are buying ‘toys’, such as sports cars or convertibles, and that in turn has pushed up the values of these types of car.”

LOOKING GOOD
The two most important factors in a car retaining value are how aesthetically pleasing it is and the quality of its connectivity. Rather than going for the entry-level trim, which might not have alloy wheels, you’ll be better off with a slightly pricier version with alloys and other attractive features. It’s also worth paying extra for metallic paintwork, although the appeal of bright colours varies by car class.

“Infotainment and connectivity have also become far more important in recent years. If a buyer is looking at two cars on a forecourt and one has a USB port and Android Auto/Apple CarPlay smartphone connectivity, they’ll choose that one over
the car without these features.”