HONDA'S new Accord has shaken up the upper-medium sector with class-leading residual values forecasts from industry analyst CAP.

The new car, which will go on sale in March, comes with a choice of 2.0-litre or 2.4-litre petrol engines and will depreciate at similar rates to premium sector cars, according to used car market specialist CAP.

The residual value forecaster estimates that the entry-level 2.0 SE will retain 37% of its new price over three years/60,000 miles.

CAP forecasts that the 2.0 Sport will retain 38% of its new price, while the 2.0 Executive model is predicted to retain 39% for the manual and 38% for the auto. The manual-only 2.4 Type S is forecast to retain 39% of its value, while both manual and automatic versions of the 2.4 Executive are given a predicted RV of 37%.

Previous sector leaders, the Mazda6 and Volkswagen Passat, are rated at 30% for 2.0-litre models, although the 1.8-litre Mazda6 is given a forecast of 32%. Meanwhile the BMW 318i SE is predicted to retain 38% of its value over the same period while the 320i SE is at 39%.

Jeff Knight, CAP New Car Monitor editor, said: 'We think the Accord has taken an upward step in terms of quality.'

2003 Honda Accord prices: 2.0SE £16,495; 2.0 Sport £17,495; 2.0 Executive £18,980; 2.4 Executive £21,095; 2.4 Type S £19,095; auto option £1,000.