Which cars depreciate fastest?

Premium SUV (Large)s lose the most money in absolute terms: approximately £25,462 in the first 3 years. Expensive cars lose more pounds, even though cheaper cars may lose a similar percentage.

How much does a car depreciate per year?

On average, a new car loses about 25% of its value in year one, 15% in year two, and 12% in year three. After that, depreciation slows to 5-8% per year. By year 10, most cars retain around 36% of their original price.

Car Depreciation Rankings (2026)

Q: Which cars hold their value best?

City Cars retain the most value, keeping approximately 56% of their new price after 3 years. This is because they start cheaper, so the percentage retained is higher even though the absolute loss may be lower.

Q: Is depreciation the biggest cost of owning a car?

Yes, for newer cars. A £25,000 family car loses approximately £9,000 in the first 3 years. That works out to £250/month, which is more than fuel, tax, MOT, and repairs combined. Buying a 3-year-old car instead of new avoids this steep initial drop.

Which cars hold their value and which lose money fastest? The average car retains just 56% of its value after 3 years.

Based on depreciation curves from real market data. Updated March 2026.

56%

Best 3yr retention

56%

Average 3yr retention

£25,462

Biggest 3yr loss

Depreciation is the single biggest cost of car ownership for anyone buying new. A £25,000 family car will lose around £9,000 in the first three years. That is £250 per month, before you even fill the tank.

Understanding depreciation helps you make smarter buying decisions. Buying a 3-year-old car instead of new avoids the steepest part of the curve and saves thousands. This page shows exactly how much each category of car loses over time, so you can factor it into your total cost of ownership.

Get a Valuation for Any Car

Enter a reg plate to get an estimated value, MOT history, and running cost breakdown for any specific car.

Depreciation by Car Category (3 Years)

How much each type of car is worth after 3 years, sorted by % value retained.

#	Category	New Price	After 3yr	% Retained	£ Lost	Per Month
1	City Car Aygo, C1, Up, Picanto, i10	£16,000	£8,976	56%	-£7,024	£195/mo
2	Small Hatchback Fiesta, Corsa, Polo, Clio, Ibiza	£18,000	£10,098	56%	-£7,902	£220/mo
3	Family Hatchback Focus, Golf, Astra, Leon, Civic	£25,000	£14,025	56%	-£10,975	£305/mo
4	Compact SUV Juke, Captur, Ecosport, Mokka	£26,000	£14,586	56%	-£11,414	£317/mo
5	Mid-Size SUV Qashqai, Tucson, Sportage, Tiguan	£30,000	£16,830	56%	-£13,170	£366/mo
6	Large SUV Kodiaq, Sorento, Santa Fe	£32,000	£17,952	56%	-£14,048	£390/mo
7	Budget SUV Duster	£22,000	£12,342	56%	-£9,658	£268/mo
8	MPV Touran, Scenic, Zafira, Verso	£26,000	£14,586	56%	-£11,414	£317/mo
9	Large MPV Galaxy, Sharan, Alhambra, S-Max	£32,000	£17,952	56%	-£14,048	£390/mo
10	Premium Compact 1 Series, A-Class, A3	£32,000	£17,952	56%	-£14,048	£390/mo
11	Premium Mid-Size 3 Series, C-Class, A4, XE	£38,000	£21,318	56%	-£16,682	£463/mo
12	Premium Executive 5 Series, E-Class, A6, XF	£48,000	£26,928	56%	-£21,072	£585/mo
13	Premium SUV (Small) X1, Q3, GLA	£36,000	£20,196	56%	-£15,804	£439/mo
14	Premium SUV (Mid) X3, Q5, GLC	£44,000	£24,684	56%	-£19,316	£537/mo
15	Premium SUV (Large) X5, Q7, GLE	£58,000	£32,538	56%	-£25,462	£707/mo
16	Sports / Coupe TT, Z4, MX-5, BRZ	£38,000	£21,318	56%	-£16,682	£463/mo
17	Van (Private) Transit, Caddy, Berlingo	£26,000	£14,586	56%	-£11,414	£317/mo

Value Retention After 5 Years

How much is left after 5 years of depreciation? This is the typical age of a "sweet spot" used car.

#	Category	New Price	After 5yr	% Retained	£ Lost
1	City Car Aygo, C1, Up, Picanto, i10	£16,000	£7,597	47%	-£8,403
2	Small Hatchback Fiesta, Corsa, Polo, Clio, Ibiza	£18,000	£8,547	47%	-£9,453
3	Family Hatchback Focus, Golf, Astra, Leon, Civic	£25,000	£11,871	47%	-£13,129
4	Compact SUV Juke, Captur, Ecosport, Mokka	£26,000	£12,346	47%	-£13,654
5	Mid-Size SUV Qashqai, Tucson, Sportage, Tiguan	£30,000	£14,245	47%	-£15,755
6	Large SUV Kodiaq, Sorento, Santa Fe	£32,000	£15,195	47%	-£16,805
7	Budget SUV Duster	£22,000	£10,446	47%	-£11,554
8	MPV Touran, Scenic, Zafira, Verso	£26,000	£12,346	47%	-£13,654
9	Large MPV Galaxy, Sharan, Alhambra, S-Max	£32,000	£15,195	47%	-£16,805
10	Premium Compact 1 Series, A-Class, A3	£32,000	£15,195	47%	-£16,805
11	Premium Mid-Size 3 Series, C-Class, A4, XE	£38,000	£18,044	47%	-£19,956
12	Premium Executive 5 Series, E-Class, A6, XF	£48,000	£22,792	47%	-£25,208
13	Premium SUV (Small) X1, Q3, GLA	£36,000	£17,094	47%	-£18,906
14	Premium SUV (Mid) X3, Q5, GLC	£44,000	£20,893	47%	-£23,107
15	Premium SUV (Large) X5, Q7, GLE	£58,000	£27,540	47%	-£30,460
16	Sports / Coupe TT, Z4, MX-5, BRZ	£38,000	£18,044	47%	-£19,956
17	Van (Private) Transit, Caddy, Berlingo	£26,000	£12,346	47%	-£13,654

How the Depreciation Curve Works

-25%

Year 1

-15%

Year 2

-12%

Year 3

-8%/yr

Years 4-6

-5%/yr

Years 7-10

-3%/yr

Years 11+

The first year is the killer. A brand new car loses roughly a quarter of its value the moment it is driven away. By year three, it has lost about 44% of its original price. After that, the rate slows considerably. This is why buying a 3-year-old car is often the smartest financial move.

Best Value Retention: 5-Year-Old Models

Which specific models from 2021 have held their value best?

#	Car	Est. New	Est. Now	% Retained	Pass Rate
1	Tesla Model 3 Long Range Awd	£22,000	£10,450	48%	88%
2	Mercedes A	£18,000	£8,550	48%	94%
3	Mini Cooper	£22,000	£10,450	48%	94%
4	Ford Ranger	£22,000	£10,450	48%	90%
5	Kia Sportage	£30,000	£14,250	48%	91%
6	Nissan Qashqai	£30,000	£14,250	48%	94%
7	Audi Q2	£22,000	£10,450	48%	95%
8	Bmw 118	£22,000	£10,450	48%	93%
9	Volvo Xc40	£22,000	£10,450	48%	93%
10	Toyota C-hr	£22,000	£10,450	48%	95%
11	Toyota Aygo	£16,000	£7,600	48%	95%
12	Hyundai Ioniq	£22,000	£10,450	48%	91%
13	Mini Cooper S	£22,000	£10,450	48%	93%
14	Audi A1	£22,000	£10,450	48%	93%
15	Toyota Yaris Design Hev Cvt	£18,000	£8,550	48%	96%
16	Kia Niro	£22,000	£10,450	48%	92%
17	Ford Transit Custom 300limitd Eblue	£22,000	£10,450	48%	87%
18	Seat Ibiza	£18,000	£8,550	48%	92%
19	Skoda Karoq	£16,000	£7,600	48%	92%
20	Ford Transit Connect	£22,000	£10,450	48%	87%

Fastest Depreciating Models

These 3-7 year old models have lost the most value. Great for used buyers, painful for new buyers.

#	Car	Year	Est. New	Est. Now	% Retained
1	Ford Fiesta(2019)	2019	£18,000	£7,450	41%
2	Mercedes A(2019)	2019	£18,000	£7,450	41%
3	Vauxhall Corsa(2019)	2019	£18,000	£7,450	41%
4	Volkswagen Polo(2019)	2019	£18,000	£7,450	41%
5	Mercedes C(2019)	2019	£18,000	£7,450	41%
6	Toyota Yaris(2019)	2019	£18,000	£7,450	41%
7	Audi A3(2019)	2019	£34,000	£14,100	41%
8	Mercedes E(2019)	2019	£18,000	£7,450	41%
9	Bmw 5 Series(2019)	2019	£48,000	£19,900	41%
10	Hyundai I10(2019)	2019	£18,000	£7,450	41%
11	Bmw 3 Series(2019)	2019	£38,000	£15,750	41%
12	Renault Clio(2019)	2019	£18,000	£7,450	41%
13	Honda Jazz(2019)	2019	£18,000	£7,450	41%
14	Audi A4(2019)	2019	£38,000	£15,750	41%
15	Skoda Fabia(2019)	2019	£18,000	£7,450	41%
16	Seat Ibiza(2019)	2019	£18,000	£7,450	41%
17	Suzuki Vitara(2019)	2019	£28,000	£11,600	41%
18	Mercedes Cla(2019)	2019	£38,000	£15,750	41%
19	Suzuki Swift(2019)	2019	£18,000	£7,450	41%
20	Audi A6(2019)	2019	£48,000	£19,900	41%

How to Beat Depreciation

Buy at 3 years old

Let someone else absorb the 44% first-three-year drop. A 3-year-old car still has modern features, remaining warranty (sometimes), and years of reliable service ahead.

Choose models that hold value

Some categories retain value better than others. City cars and budget SUVs lose less in percentage terms. Check our rankings above before deciding.

Keep mileage reasonable

High-mileage cars depreciate faster. Keeping to average mileage (7,400 miles/year) helps maintain value. Going over 100,000 miles triggers a significant drop.

Maintain full service history

A car with full service history is worth 10-20% more than one without. Keep every receipt and stamp the book on time.

How Much Is Your Car Worth?

Enter any reg plate for a free valuation estimate, plus MOT history and running cost analysis.

Frequently Asked Questions

Which cars hold their value best?

In percentage terms, city cars and budget models retain the most value because they start cheaper. In absolute terms, premium SUVs retain the most pounds because of their high starting price. For used car buyers, the best value is often a 3-year-old mainstream family car that has already absorbed the steepest depreciation.

How much does a new car lose in the first year?

On average, about 25%. A £25,000 car loses approximately £6,250 the moment it is registered and driven away. Some prestige models lose even more in the first year, while popular models with long waiting lists can sometimes retain more.

Is depreciation the biggest cost of owning a car?

For new car buyers, yes. Depreciation typically costs more per month than fuel, tax, insurance, and repairs combined. This is why many financial advisors recommend buying used instead of new, as the previous owner absorbs the biggest losses.

Does mileage affect depreciation?

Yes. Cars with significantly above-average mileage (over 12,000 miles/year) depreciate faster. Crossing the 100,000-mile mark triggers a noticeable price drop of around 10%. Keeping mileage near the 7,400-mile UK average helps maintain value.

Check Any Car Free

MOT history, health score, valuation estimate, mileage verification, and running costs. Completely free, no signup required.

Cheapest Cars to Run

Running cost rankings including fuel, tax, and repairs

Best Cars Under £10,000

The used car sweet spot, ranked by reliability

MOT Failure Rates

Which models fail their MOT most often?

Methodology

Depreciation estimates are based on a standard depreciation curve applied to average new prices for each vehicle category. The curve models 25% first-year loss, 15% second-year, 12% third-year, 8% for years 4-6, 5% for years 7-10, and 3% for years 11+. Actual depreciation varies by specific model, trim, condition, mileage, colour, and local market demand. These figures provide a useful benchmark for comparison purposes. Individual model values should be verified against current market listings.