Fleet News

Latest study reveals British cars lose value fastest

British cars lose 51% of their value over 4 years, according to research from Car Search Engine Adzuna.co.uk. The new study also reveals that Leicester is the cheapest city in the UK to buy a used car, while Brighton is the most expensive.

The research, conducted in February 2013, analyses over 600,000 used car ads indexed on Adzuna across over 100 UK locations, extracting asking prices for the most popular models. This data was then benchmarked against new car prices from 2009, resulting in a “depreciation score” for every car.

British car brands have lost their value faster than cars from any other country in Europe, losing on average 51% of their worth over four years. French cars, last year’s top place in this category, follow closely behind on 49%. Brands like Jaguar, Vauxhall and Land Rover bring down the British score, all losing over 58% of their value in just 4 years. German and Italian cars hold their value better falling just 40% over the same period. The average new car in the UK has depreciated 49% in real terms over four years.

Volkswagen Polos and Smart cars keep their value the best over time, retaining three quarters of their new price after four years, while new Renault Meganes and Mazda 6’s are expected to lose 60% of their original price tag by 2017. ‘Supercars’ retain their value better than most, with the Audi R8 and Ferrari 430 dropping less than 29% over four years, and the Lamborghini Gallardo decreasing by only 31%.

Leicester is the cheapest city in the UK to buy a used car in 2013 with the average popular motor £544 cheaper than other UK cities. Brighton is the most expensive, with the average list price of used cars in the city over £13,000. Bargain hunters should head to Wales, where the study shows the same used car in England will be 5% cheaper if you make the trip across the border.

Andrew Hunter, co-founder of Adzuna, said “Listing every used car for sale in the UK in our search engine enables us to gain unique insights into the motors market. New car buyers in the UK should be looking to pick up motors which retain more than 50% of their value over the first 4 years of their life, and used car buyers should be willing to travel for a bargain.”

Average depreciation per country of make

Country

Depreciation (%)

2012 Rank

England

51.1

2

France

48.9

1

Japan

46.7

3

Spain

45.2

8

USA

43.7

4

Czech

42.0

5

Germany

40.5

7

Italy

40.2

6

Top 10 cars with the least depreciation over time

Car Model

New Price (2009)*

Used Price (2013)

Depreciation (%)

Smart ForTwo

£6,905

£5,905

25.7

Volkswagen Polo

£8,685

£7,409

25.9

Audi R8

£79,825

£63,081

32.1

Ferrari F430

£168,967

£131,686

33.2

Nissan Qashqai

£14,100

£10,843

34.2

Lamborghini Gallardo

£139,710

£107,404

34.2

Ford KA

£7,945

£5,912

36.7

Volkswagen Golf

£14,170

£10,381

37.8

Peugeot 107

£9,095

£6,530

39.2

Audi TT

£23,915

£17,104

39.5

Top 10 car models with the greatest depreciation over time

Car Model

New Price (2009)*

Used Price (2013)

Depreciation (%)

Renault Megane

£17,135

£7,255

68.3

Jaguar XJ

£43,752

£19,073

67.0

Ferrari 599

£207,075

£94,950

64.8

Mazda 6

£17,079

£8,010

63.8

Peugeot 206

£10,500

£4,950

63.5

Peugeot 308

£14,900

£7,238

62.1

Subaru Impreza

£19,680

£9,606

61.9

Land Rover Freelander

£34,657

£16,947

61.8

BMW 5 Series

£29,060

£14,458

61.0

Ford Mondeo

£16,600

£8,472

59.7

Bargain Cities: the cities with the most cars under £1000 and £500

City

Number of cars under £1000

Number of cars under £500

London

6,145

1,291

Birmingham

2,042

427

Manchester

1,364

348

Glasgow

1,241

202

Leicester

973

231

Leeds

836

189

 


Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee