There are many important factors to consider when buying a used car. One of the most important – yet often overlooked – aspects is depreciation. Every car loses value over time, but the rate of this can vary depending on the model. Typically, a car will lose 15-35% in the first year and 50% or higher after three years. When purchasing used cars, choosing one with a slower depreciation rate can make a significant difference in its resale value over time. Keep reading to discover four cars that have a slow depreciation rate.
The Toyota Land Cruiser: Longevity Meets Value Retention
The Toyota Land Cruiser is a vehicle known for its durability and reliability, which contributes to its impressive value retention. Although a large SUV, the Land Cruiser has one of the slowest depreciation rates in the UK market.The average price of this vehicle when new is £64,355 while the average value is £38,175 after three years, giving this model an average retained value of 59.32%.
The Porsche 911: Luxury with Lasting Value
Luxury vehicles tend to have a higher deprecation rate, which means motorists can lose a lot of money when selling. This is not the case for the desirable Porsche 911, which is an iconic model that holds its value well due to the prestige, build quality, and strong demand for this particular model.
Mini Cooper: Style and Demand Keep Deprecation Low
There are few cars as iconic as the Mini Cooper. With a unique and eye-catching design and wide appeal across different demographics, the Mini Cooper never goes out of style. This high demand is a key factor why the Mini Cooper holds its value well and will be a smart purchase for any motorist looking to retain value. As a brand, the mean deprecation rate is 25% of the purchase price when new after three years, which is much lower than most automobiles.
Tesla Model 3: Leading the EV Market with Strong Resale Value
The electric car market is going from strength to strength, and the Telsa Model 3 is the poster vehicle for this class. Although a relatively new entrant to the market, the Tesla Model 3 retains its value well as such a highly desirable and popular vehicle. Its futuristic design, advanced features, and environmentally-friendly nature makes this one of the most in-demand vehicles right now, which means that the rate of depreciation is particularly low.
Deprecation is an important consideration when buying any car. Cars with a slow depreciation rate will be a smart financial investment as you will recoup more of the money you spent when the time comes to sell. The above are four of the best cars in terms of depreciation rate in the UK and vehicles that should be considered when shopping in the used car market.