In fact around 20 per cent of the car’s value is lost the second you step inside and turn on the engine.
Knowing which cars have the best residual values could, in the long run, save you money.
However, according to a new study by Insure the Gap, 11 per cent of drivers think all cars lose their value at the same rate.
The reality is that all cars will suffer from depreciation over the years and the rates vary from vehicle to vehicle.
One exception for depreciation are vehicles that become classic or iconic cars but they are a rarity and often cost an extortionate amount.
Used cars are a safer bet than new cars to minimise depreciation as their value usually declines at a slower rate.
These vehicles lose around 15 per cent of their value per year on average peaking in the first three years.
Earlier this year car value experts at WhatCar? compiled a list of ten 2017 cars that depreciate the slowest.
Each calculation is based on 12,000 miles a year over three years.
10. Porsche Macan
Price: £43,903
Depreciation after three years – £24,700 (56.26 per cent retention)
9. Range Rover Evoque 2.0 eD4 SE
Price: £30,600
Depreciation after three years: £17,250 (56.37 per cent retention)
8. Range Rover Sport SDV6 HSE
Price: £64,655
Depreciation after three years: £36,450 (56.38 per cent retention)
7. BMW X4 xDrive20d SE
List price: £37,935
Depreciation after three years: £21,400 (56.41 per cent retention)
6. Audi Q3 2.0 TDI 150 S line
Price: £31,190
Depreciation after three years: £17,850 (57.23 retention)
PH
Tesla Model S is one of the best electric cars in the year
Price: £63,500
Depreciation after three years: £36,341 (57.23 per cent retention)
4. Dacia Duster 1.6 SCe Ambience
Price: £10,595
Depreciation after three years: £6,175 (58.28 per cent retention)
3. Land Rover Discovery 3.0 TDV6 SE
Price: £50,995
Depreciation after three years: £30,150 (59.12 per cent retention)
2. Audi S3 hatch 2.0 TFSI Black Edition
Price: £34,340
Depreciation after three years: £23,800 (64.1 per cent retention)
1. Lotus Elise 1.8 Convertible
Price: £37,150
Depreciation after three years: £23,800 (64.1 per cent retention)
The Sun and Cap hpi put together a list of more affordable cars that depreciate slowly and ultimately won’t break the bank.
1. Dacia Sandero (2013-2016)
Price new: £7,669
Depreciation: £3,563
Value retained: 53 per cent
2. Suzuki Celerio (2015-present)
Price new: £8,508
Depreciation: £3,903
Value retained: 54 per cent
3. Hyundai i10 (2016-2017)
Price new: £9,490
Depreciation: £3,909
Value retained: 59 per cent
Price new: £8,669
Depreciation: £3,968
Value retained: 54 per cent
5. Volkswagen up! (2016-present)
Price new: £11,012
Depreciation: £4,452
Value retained: 59 per cent
6. Hyundai i20 (2016-present)
Price new: £11,967
Depreciation: £4,546
Value retained: 62 per cent
PH
Seat Ateca is one of the company’s best selling car
Price new: £22,678
Depreciation: £4,636
Value retained: 80 per cent
8. Kia Picanto (2015-2016)
Price new: £10,655
Depreciation: £4,819
Value retained: 55 per cent
9. Dacia Duster (2014-present)
Price new: £12,270
Depreciation: £5,043
Value retained: 57 per cent
10. Honda Jazz (2015-present)
Price new: £15,834
Depreciation: £5,058
Value retained: 68 per cent
[“Source-express”]
