EurotaxGlass's, publisher of Glass's Guide to Used Car Values, has revealed the types of used car that are least susceptible to depreciation. Assessing more than 6,000 different three-year-old models, the research indicates that used cars are more likely to retain a greater proportion of their value if they are a coupe or convertible, small or lower-medium sized, are produced by a prestige-brand manufacturer, and powered by a diesel or low-capacity petrol engine.
Various factors contribute to strong residual values – the more of these characteristics a car has, the greater the chance that its depreciation will be minimised:
* Coupe or convertible – Coupes and convertibles claim six places in the top 10 list of slowest-depreciators, and the residual values of these cars will typically far outperform those of more practical saloons and hatchbacks.
* Small or lower-medium sized models – Smaller cars lose the least amount of money over the typical three-year ownership period. The Perodua Kelisa may not be regarded by many as an aspirational second-hand purchase, but in cash terms (rather than as a percentage of retained value) it currently depreciates more slowly than any other car – losing just £2,800 over three years. By stark contrast, the Bentley Continental T coupe sheds £141,000 over the same period.
* Premium brand – While a prestige badge is no guarantee of success (as illustrated by the heavy depreciation of some large luxury saloons), the best performing cars are typically those produced by the likes of Audi, BMW, Mercedes, Porsche, etc. Audi has a particularly strong showing in the top 10 list, reflecting a wider improvement in its overall market standing in the UK.
* Diesel isn't critical...yet – Selecting a diesel variant will improve the residual value of many cars. However, the top 10 list of slow depreciators still features five petrol-engined cars, partly because of the strong residual values of sporty, high performance petrol models, and also because diesel engines are rarely found on those smaller cars that boast strong residuals.
* New to the used market – Depreciation will be lower when a used car is available in limited numbers. The residual value of any car is likely to be higher if the vehicle was originally purchased new within 12 months of the model's launch.
*Manufacturer support – Used car buyers normally avoid anything that is obsolete. Two in the list of 10 fastest-depreciators are Rover models, the 45 and 75 petrol saloons, which lack the support of a franchised network following the closure of the car manufacturer in 2005.
* Not 'distress sold' – Those cars that hold their value will not have been 'distress sold' when new.
* 'Sportiness' – All but one of the cars in the list of the 10 slowest-depreciators are marketed as high performance models.
