What is car depreciation?
Car depreciation is the difference between how much the car was worth when you bought it and the price you sell it for. If you buy a car for under £10k and then sell it for £5k when you’re ready, this means the car has depreciated by 50%. It doesn’t mean you’re bad at negotiating car prices per se. instead, the amount you can sell it for depends on how well the car can retain its value. Some cars depreciate faster than others, and if you’re looking to save money in the long run, shopping for the slowest depreciating cars can help you do exactly that.
How much do cars depreciate per year?
The rate at which cars depreciate depends on the make and model and the age of the car. Brand-new cars tend to depreciate quicker and the rate of depreciation slows as the vehicle gets older. Typically, cars can follow the below rules when it comes to depreciation.
- 1st year – Cars can depreciate by 15-35%.
- 3rd year – Cars can depreciate by 40-60%.
- 5th year – Cars can depreciate by 60-70%.
- 8th-10th year – Cars can depreciate by 80%.
This means the car could be worth 80% of its original purchase price when you buy it between 8 and 10 years old.
Top 10 slowest depreciating cars:
- Audi RS3.
- Mercedes-Benz G-Class.
- Ranger Rover Sport.
- Land Rover Defender.
- Porsche 911.
- Lamborghini Urus.
- Porsche Macan.
- Jeep Wrangler.
- Ford Mustang.
- Tesla Model S.
1. Audi RS3.
The Audi RS3 is one of the slowest depreciating cars you can buy, and it is a force to be reckoned with. It’s an impressive, high-performance hatchback but also comes in a saloon version. It comes with a 2.5 litre five-cylinder engine which is not to be messed with and can take you from 0-60mph in just 3.8 seconds! It excels on all kids of roads but motorway driving will always be preferred over city driving in this type of vehicle. There’s plenty of room for both driver and passenger and the interior spec is quality and very user friendly. The only thing which holds the Audi RS3 back is the limited boot space but lets face it, it’ not really that kind of vehicle is it?
2. Mercedes-Benz G-Class.
Looking for a slow-depreciating car that oozes style and premium quality? Say hello to the Mercedes-Benz G-Class. Also known as the Mercedes-Benz G-Waggon, the G-Class is an unstoppable SUV that will certainly turn heads. They are instantly recognisable with their boxy body and large round headlights. Granted, you’re more likely to see one on the high street, as they’re a popular choice for celebrities and athletes, but they’re still one of the most capable off-road cars you can buy. You get that cool mix of expensive style and rugged capacity on the inside.
3. Range Rover Sport.
If you like the G-Class above, you may also be interested in the Range Rover Sport. They’re both premium SUVs and their car depreciation rate is slow. The Land Rover Sport is a bulky and strong off-roader that also has great PHEV hybrid abilities. Many drivers are still sceptical about such large cars being effective with a hybrid engine, but the Range Rover Sport can provide a decent 70-mile electric range on battery power alone. It also comes with a whole load of stunning features as standard such as the 20″ 7020 wheels, Meridian Sound system and 12-way electric heated front seats!
4. Land Rover Defender.
Land Rover has a strong history of making cars which retain their value. The second Land Rover on our list of the slowest depreciating cars is the luxury off-road SUV, the Land Rover Defender. It is cheaper than the Range Rover Sport but comes with some great selling points. There’s no denying it looks sophisticated, and the interior quality is plush. On the road, it is great fun to drive and can handle any terrain you hit it with. The Defender is a popular model for farmers and land works due to its specialist Terrain Response system, advanced traction control and intelligent locking differentials.
5. Porsche 911.
When it comes to chart-toping cars, the Porsche 911 is probably the best sports car you can buy. One thing you love to hear when you buy an expensive car is that it also holds its value well. The Porsche 911 is not only stunning, but its performance can be unrivalled. Its recent update saw a brand-new Turbo-Hybrid version introduced to the 992.2 911 GTS model. This powerful hybrid system brings not one but two electric motors to the 3.6-litre turbocharged engine which are purely there to add extra oomph and some serious speed.
6. Lamborghini Urus.
What’s the most expensive car that depreciates slowly? It’s the Lamborghini Urus, of course! Granted, It’s not for your everyday diver, but it’s still worth a mention because it should be idolised. The Lamborghini Urus starts from around £194k and is pretty much worth every single penny. It may not look it, but the Urus is actually classed as an SUV and is one of the fastest you can buy! From 0-62mph in just 3.2 seconds, the Urus is truly impressive. For such a huge supercar, it’s actually really practical too and could even make a reliable and friendly family car.
7. Porsche Macan.
Another slow-depreciating car from the Porsche brand is the sporty SUV that is the Porsche Macan. The Macan is still a high-end, quality car, but it’s cheaper to buy than the 911. It’s a £56k car, but if you want a premium, you pay premium. The Macan looks great and can deliver exceptional performance. The interior is totally centred around the driver, and the advanced cockpit comes with more bells and whistles than we would know what to do with. The Porsche Macan is a great choice if you’re looking for driving enjoyment, style, and sophistication.
8. Jeep Wrangler.
There seems to be a pattern here amongst off-road SUVs that hold their value well, and another SUV to add to that list is the Jeep Wrangler. It’s more affordable than other options, but it is still impressive in its own right. It’s really versatile and can be great for weekend road trips or a great car for camping and adventures. At a glance, it could be mistaken for the Mercedes G-Class with its boxy, rugged body and chunky wheel arches. No matter if you choose the petrol or diesel version, you’ll get an 8-speed automatic gearbox and be promised a comfortable ride, no matter the terrain.
9. Ford Mustang.
We’ve recently featured the Ford Mustang as one of the best coupe cars you can buy, so as you’d imagine, it’s powerful, compact and fast! Not only that, but it’s slow to depreciate, too. The Ford Mustang has a large V8 engine which offers great handling and can do 0-60mph in just 3.9 seconds! We like the Ford Mustang because it’s good value for money, comes with lots of features as standard and highly capable. It’s got a good reliability score of 91% (WhatCars Reliability Survey), so there’s less to worry about there, and it even places above brands like Mercedes and Audi!
10. Tesla Model S.
Last but not least, the Tesla Model S is one of the slowest depreciating cars you can buy. It’s also the first electric car we’ve listed, but boy, is it a good one! The Tesla Model S can promise between 370-400 miles of all-electric driving on a single charge! The Tesla Model S offers a high-quality interior, advanced technology, and impressive acceleration. You’ll find Teslas evolved infotainment in most models, and it comes with some amazing features like AutoPilot, dog mode, TV streaming, and ‘caraoke’.
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