New car depreciation
The latest study of new car depreciation over the first three years
When buying a new car, one of the big considerations is always going to be how much value it will lose by the time you come to sell.
For driving instructors who tend to change their training vehicle every two or three years, its resale value is an important business consideration. A lower rate of depreciation ultimately means that the car costs you less over the duration of time.
The research, carried out by Zutobi, reveals that the Volkswagen Polo and Golf are the lowest depreciators over three years. They are closely followed by the Land Rover Range Rover & BMW 6 Series Gran Turismo.
The cars with the lowest depreciation rates after 3 years…
These are the cars that retain the most value, therefore costing the least over the lifetime of ownership:
Rank | Make | Model | List Price | Average Value After 3 Years | Average 3 Year Depreciation Rate | Average Value Lost |
1 | Volkswagen | Polo | £15,045 | £13,649 | 9.28% | £1,396 |
2 | Volkswagen | Golf | £20,955 | £18,867 | 9.96% | £2,088 |
3= | Land Rover | Range Rover | £83,665 | £75,184 | 10.14% | £8,481 |
3= | BMW | 6 Series Gran Turismo | £43,790 | £39,351 | 10.14% | £4,439 |
6= | Porsche | 718 Cayman | £44,074 | £39,229 | 10.99% | £4,845 |
5= | Mercedes-Benz | C-Class | £28,995 | £25,807 | 10.99% | £3,188 |
7= | Citroen | Berlingo | £19,430 | £17,127 | 11.85% | £2,303 |
7= | Toyota | C-HR | £21,885 | £19,291 | 11.85% | £2,594 |
7= | Lotus | Evora | £75,100 | £66,198 | 11.85% | £8,902 |
10 | Porsche | Panamera | £67,898 | £59,791 | 11.94% | £8,107 |
11= | Porsche | Macan | £46,913 | £40,543 | 13.58% | £6,370 |
11= | BMW | Z4 | £40,815 | £35,273 | 13.58% | £5,542 |
11= | Suzuki | Celerio | £8,999 | £7,777 | 13.58% | £1,222 |
11= | Porsche | 718 Boxster | £44,758 | £38,680 | 13.58% | £6,078 |
15 | Suzuki | Ignis | £11,499 | £9,838 | 14.44% | £1,661 |
16= | Lamborghini | Huracan | £155,400 | £132,952 | 14.45% | £22,448 |
16= | Audi | SQ7 | £76,360 | £65,329 | 14.45% | £11,031 |
16= | Mercedes-Benz | GLA-Class | £25,120 | £21,491 | 14.45% | £3,629 |
19 | Citroen | C3 | £16,120 | £13,511 | 16.18% | £2,609 |
20 | Land Rover | Discovery | £47,445 | £39,766 | 16.19% | £7,679 |
The Polo’s price reduces by 9.28%, whilst the Golf decreases by 9.96%.
The two stalwarts of the Volkswagen brand are some of the most popular and best-selling cars in the UK. A brand-new Volkswagen Polo will cost £15,045, which will decrease to £13,649 after three years.
Following the two VW’s, the Land Rover Range Rover and the BMW 6 Series Gran Turismo are in third place. Both cars depreciated in value by 10.14%, with the Range Rover still retaining a value worth more than £75,000 after three years. Though I know of few ADIs training in these luxury motors, but it would make an interesting option.
The cars with the highest depreciation rates after 3 years…
These are the cars that lose the most value, therefore costing the most over the lifetime of ownership:
Rank | Make | Model | List Price | Average Value After 3 Years | Average 3 Year Depreciation Rate | Average Value Lost |
1 | Mitsubishi | Shogun Sport | £37,840 | £15,745 | 58.39% | £22,095 |
2= | Audi | A6 Allroad Quattro | £54,555 | £22,713 | 58.37% | £31,842 |
2= | Vauxhall | Combo Life | £20,135 | £8,383 | 58.37% | £11,752 |
4 | Infiniti | Q50 | £43,440 | £18,972 | 56.33% | £24,468 |
5= | Lexus | IS | £31,900 | £14,255 | 55.31% | £17,645 |
5= | BMW | 7 Series | £69,565 | £31,087 | 55.31% | £38,478 |
7 | Audi | A8 | £71,695 | £32,761 | 54.31% | £38,934 |
8= | Audi | S8 | £83,925 | £39,191 | 53.30% | £44,734 |
8= | Maserati | Quattroporte | £74,320 | £34,706 | 53.30% | £39,614 |
10 | Jeep | Compass | £23,450 | £11,185 | 52.30% | £12,265 |
11 | Peugeot | 5008 SUV | £27,545 | £13,157 | 52.23% | £14,388 |
12= | Peugeot | 3008 SUV | £25,395 | £12,364 | 51.31% | £13,031 |
12= | Nissan | Leaf | £31,495 | £15,334 | 51.31% | £16,161 |
14 | Peugeot | 508 | £25,044 | £12,441 | 50.32% | £12,603 |
15= | Hyundai | i800 | £27,400 | £13,881 | 49.34% | £13,519 |
15= | Mercedes-Benz | E-Class | £36,070 | £18,274 | 49.34% | £17,796 |
15= | Vauxhall | Viva | £10,485 | £5,312 | 49.34% | £5,173 |
18= | Kia | Sportage | £20,670 | £10,674 | 48.36% | £9,996 |
18= | Peugeot | 508 SW | £40,819 | £21,079 | 48.36% | £19,740 |
20 | Volvo | XC60 | £37,785 | £19,881 | 47.38% | £17,904 |
On the other end of the scale, the Mitsubishi Shogun Sport has the highest average rate of depreciation over three years, with 58.39% of its value lost.
The start price for a Shogun Sport is £37,840, but in just three years, it is only worth £15,745, making it the highest depreciating car in the UK.
The off-road vehicle is only narrowly followed by the Audi A6 Allroad Quattro and the Vauxhall Combo Life, with both cars having a depreciation rate of 58.37%.
You can view the full research here.