Drivers are encouraged to buy used car types to avoid depreciation

Drivers looking to buy a new model that will still be valuable for years to come have been encouraged to consider one type of car over any other.

Although the used car market is currently booming, many used models are selling for less than in previous years, which means more people are considering how much a vehicle depreciates in value before they buy it.

Paul Barker, editor of motoring publication Auto Express, says performance models typically hold their value much better than more practical alternatives.

He explained: “Our latest analysis shows that sports cars are currently top of the list in terms of retained value. It’s a trend we believe is partly driven by a decreasing number of these models available to buy as new.

“This, along with high sports car prices, is driving up the prices of used cars that will hit the market a few years later, meaning sellers could get a better price.”

While not all drivers can live with the limited practicality and high running costs of a sports car, Auto Express noted that many types of family cars also rank well in terms of overall depreciation.

Large SUVs are the family cars that depreciate the most, with the company highlighting that the average model still has about 52% of its retail value after 36 months and 36,000 miles on the clock.

Surprisingly, superminis, some of the cheapest cars on the market, also ranked well, still being more than half their retail price after three years.

However, not all types of cars retain their value, with Paul recommending that drivers looking to save money buy a second-hand luxury model to avoid being hit.

He continued: “When it comes to luxury cars, the worst performing category in terms of depreciation, it is the case that large luxury sedans have fallen firmly out of favor with private buyers.

“While the luxury SUV market has grown and we see these large SUVs with premium badges holding their value strongly, models like the Audi A8 and BMW 7 Series are less sought after. .”