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Friday, July 19, 2024

3 min read

Which Cars Lose Value Fastest, and Why It Can Suit Used Buyers

The cars that lose value fastest tend to be large executive saloons, early electric cars, niche coupes and models the used market is full of. That is bad news for the first owner, but it can make the same cars good value for a used buyer.

Why do some cars lose value faster than others?

Every car depreciates, and most lose the biggest share of their value in the first few years. How fast depends on a few things:

  • High list price: the more a car costs new, the more money there is to lose in pounds.

  • Running costs: cars that are expensive to service, insure or repair put second owners off.

  • Supply: when lots of the same model come off lease or company fleets at once, prices fall.

  • New technology: when a newer version arrives with a better range or new features, older ones look dated.

  • Narrow appeal: coupes, convertibles and unusual models have fewer buyers.

Our guide to car depreciation explains the basics in more detail.

Which types of car usually depreciate fastest?

Large executive saloons

Cars such as the BMW 5 Series and Mercedes E-Class cost a lot new and many are sold as company cars. When several years' worth come back onto the market at once, prices drop quickly.

BMW 5 Series executive saloon
Mercedes-Benz E-Class executive saloon

Compact executive cars

The BMW 3 Series, Audi A4 and Mercedes C-Class follow a similar pattern on a smaller scale. They are popular, so there is plenty of choice used, which keeps prices competitive.

BMW 3 Series compact executive car

Coupes and convertibles

Two-door versions such as the Audi A5 Coupe and Cabriolet appeal to fewer people than the saloon or estate they are based on, so they can be harder to sell on.

Audi A5 coupe

Early electric cars

Older electric cars such as the first-generation Nissan Leaf lost value quickly as newer models arrived with much longer ranges. Electric car values have also been affected by changes in new car prices. Our guide to whether electric cars hold their value looks at this in more detail.

Nissan Leaf electric hatchback

Very common family SUVs

Popular SUVs such as the Nissan Qashqai, Peugeot 3008 and Mazda CX-5 sell in large numbers, so the used market has plenty of them. That steady supply helps keep used prices reasonable for buyers.

Nissan Qashqai family SUV
Peugeot 3008 family SUV
Mazda CX-5 family SUV

Is fast depreciation good news for used buyers?

Often, yes. If someone else has paid for the steepest part of the drop, you get a well-equipped car for much less than it cost new. The trade-off can be higher running costs, so check the service history and budget for tyres, servicing and insurance. Our guide to high-end cars that have already taken their biggest drop explains more.

How can I slow depreciation on my own car?

  • Keep a full service history and every receipt.

  • Fix small dents, scuffs and kerbed wheels before you sell.

  • Keep the mileage sensible for the car's age.

  • Choose a popular colour and useful options if you buy new or nearly new.

Common questions

Which cars hold their value best?

Cars with strong demand, good reliability and low running costs usually do best. See our guide to cars that hold their value.

What is the best age to buy a used car?

Many buyers find a car of around three years old a good balance of price and condition. Our guide to the best age to buy explains why.

How do I find out what my car is worth now?

Get a valuation through our sell your car page.

Find a used car in Barnsley

Browse our cars in stock or call our sales team on 01226 574410. You can also compare running costs with our running cost calculator before you buy from anycolourcar.com in Barnsley, South Yorkshire.

Updated October 2026.