Car buyers looking for vehicles with lasting value are being advised to choose certain types of cars over others. While the used car market is currently thriving, the prices of many pre-owned models have decreased compared to previous years, with some performing better than others in retaining their value.
According to Paul Barker, editor of Auto Express, performance vehicles like sports cars tend to hold their value better than more practical options. The analysis reveals that sports cars are currently leading in retained value, partly due to a decreasing number of new models available. This scarcity, combined with high prices of sports cars, results in higher prices for used models in the market after a few years, benefiting sellers.
The top five car types with the lowest depreciation rates after 36 months are sports cars (52.38%), large SUVs (52.05%), superminis (50.23%), premium hatchbacks (50.04%), and MPVs (49.16%). While sports cars may not suit all drivers due to their impracticality and high running costs, Auto Express notes that many family car variants, such as large SUVs, also perform well in terms of depreciation.
Large SUVs have the best depreciation record among family vehicles, retaining around 52% of their original selling price after 36 months and 36,000 miles. Superminis, known for their fuel efficiency, show strong value retention, keeping over half their initial price after three years of use.
However, for those looking to save money on a luxury vehicle, purchasing a second-hand model is recommended due to the rapid depreciation of such cars when bought new. Luxury cars, particularly large luxury saloons, suffer from poor depreciation as buyer preferences shift towards luxury SUVs with premium badges. Consequently, models like the Audi A8 and BMW 7 Series are less sought-after, resulting in lower resale values.
Car buyers are advised to consider the depreciation rates of vehicles before making a purchase, as opting for a car type with better value retention can result in higher resale prices in the future, ultimately saving money in the long run.