Which cars hold their value? Let’s find out…
Get money for your car with Logbook Loans!
When choosing a new car we base our decision on all kinds of reasons. More serious car addicts will look at factors such as performance and fuel consumption, whereas many others are more influenced by style, colour and internal features.
Then there are also the energy implications to think about. There is a lot of controversy around at the moment surrounding diesel cars. Not so long ago we were advised to buy them for both environmental and economic reasons but now they have fallen out of favour and electric/hybrid cars are now emerging as the fuel of choice. See our article on Cheapest Car to run – petrol or diesel – for further details on the advantages and disadvantages of different types of fuel.
But one other major factor we also need to consider when buying a car is how long we intend to keep that car, and what its likely resale value will be when we are ready to change it again. Depreciation affects different cars at different rates, so when buying a car it is important to be aware of how it is likely to depreciate over the coming years. The faster you car depreciates, the less money you are likely get for it if you decide to sell it in the future.
Also if you plan to use your car at any stage to obtain a Logbook Loan, then the more it is worth, the more you are likely to be able to borrow. Another reason for ensuring that the car you are buying today is going to be a good investment for tomorrow.
Recent research by used car dealer Carspring examined the depreciation rates of cars for sale at car dealers in five of the UK’s biggest cities and hundreds of online used car marketplaces.
The research found that on average UK cars depreciate by 51.9% in value after 34,700 miles. Whilst this means that it can be a good place to grab a bargain used car, it also means that you need to be careful to buy a car that is not going to lose its value if you intend to resell it after a relatively short period of time.
The research found that the following 13 brands of car hold their value the best. The % figure shows how much of the car’s original value is typically lost after 34,700 miles:
- Mini – 46.08%
- Audi – 47.33%
- Volkswagen – 47.51%
- Lexus – 51.59%
- Ford – 53.49%
- Vauxhall – 54.12%
- Fiat – 54.17%
- BMW – 55.82%
- Kia – 59.27%
- Nissan – 63.23%
- Honda – 65.94%
- Peugeot – 70.19%
- Toyota – 74.59%
So if you are planning to buy a new car then think carefully about the likely depreciation rate of that car if you plan to sell it in the foreseeable future or to use it for a logbook loan.
Remember it is also important to maintain your new car to keep it in its best condition – see our article Car Maintenance – All You Need to Know – for information on how to do that.
Check back here soon for more motoring tips from Logbook Loans.