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by Spreet Aulakh 31st August 2018

Best selling cars depreciation over 5 years

If you are looking to buy a new car this September, InsuretheGap.com has analysed how the top ten best-selling petrol cars in 2017 have held their value in the last five years.

A new car loses approximately 20 per cent of its value as soon as it is driven off the showroom forecourt, and cars lose between 15 - 20 per cent of their value each year. All of the cars in the study lost almost half their original value since being bought new in 2013.

The Mini Cooper, 1.6 3d Hatchback, 6 speed manual, depreciated the least and at today’s prices would sell for £9,240, having been bought in 2013 for £18,005. It is worth 49 per cent less than when it was bought.

The Ford Fiesta, 1.4 3d Hatchback, 5 speed manual, held its value the least well in the study, depreciating by 65 per cent in five years. From a new price of £12,175 in 2013 to a price of £4,320 today, it had lost almost £8,000.

After the Ford Fiesta, a Vauxhall Corsa, 1.4 3d Hatchback, 5 speed manual, was the second fastest car to depreciate in the study, losing 64 per cent of its original value. It cost £15,940 in 2013, dropping to £5,660 in 2018.

The third worst depreciating car is the Ford Focus, 1.6 5d Hatchback, 5 speed manual, which cost £15,830 in 2013, and is priced at just under £6,000 in 2018.

The most expensive car in the study a Mercedes C-class, 1.6 4d Saloon, 6 speed manual, which bought new in 2013 cost £27,740, now would only fetch £11,350, a reduction of 59 per cent and the fifth fastest depreciating car in the study.

As well as the best-performing Mini Cooper, the Mercedes A-class, 1.6 5d Hatchback, 6 speed manual, and the VW Polo, 1.4 3d Hatchback, 5 speed manual, fared best in terms of depreciation taking the eighth and ninth spot respectively, only losing just over half their value over the five-year period.

Ben Wooltorton, Chief Operating Office at InsuretheGap.com, said: “There are a number of factors that determine a car’s depreciation rate. Some apply to all vehicles based on how they’ve been used, and others are due to the specific characteristics of a particular make and model.

“For example, things like mileage, number of previous owners, service history, general condition and colour are usage factors, whereas reliability, safety, and reputation tend to apply to specific makes or manufacturers and typically don’t change over the course of ownership. Put these together and they will all play a part in how much a car is worth when you come to sell, or if it’s written off,” he said.

The effect of depreciation means that if a vehicle gets written off or stolen and it has been bought on a finance agreement, or with a loan, the owner may find themselves with an outstanding balance which is greater than their insurance company pay-out in settlement. This is because the insurance company will only pay the current market value of the car if it is over 18 months old. A GAP (Guaranteed Asset Protection) insurance policy is a way to bridge the gap between what a car cost new and the money received from the insurer if a claim is made. A specialist insurance provider, like InsuretheGap.com, sells GAP policies from just £54.55* and tend to be significantly cheaper than those offered by car dealerships. Cover is available for vehicles worth up to £150,000, covering gaps up to £50,000.

InsuretheGap.com used Glass’s data to compile the survey and all the valuations are based on average mileages. The full details are displayed in the table below.

Car Make/Model In Order of Best-Selling Price bought new in March 2013 Price in 2018 (based on av.mileage) Depreciation % Order of depreciation with 1 being the fastest – 10 the slowest
1. Ford Fiesta
1.4 3d Hatchback, 5 speed Man, Petrol
£12,175 £4,320 65% 1
2. VW Golf
1.4 3d Hatchback, 5 speed Man, Petrol
£13,430 £6,110 55% 6
3. Ford Focus
1.6 5d Hatchback, 5 speed Man, Petrol
£15,830 £5,980 62% 3
4. Nissan Qashqai
1.6 5d Hatchback, 5 speed Man, Petrol
£17,905 £8,190 54% 7
5. Vauxhall Corsa
1.4 3d Hatchback, 5 speed Man, Petrol
£15,940 £5,660 64% 2
6. Vauxhall Astra
1.4 5d Hatchback, 5 speed Man, Petrol
£14,750 £5,750 61% 4
7. VW Polo
1.4 3d Hatchback, 5 speed Man, Petrol
£12,900 £6,390 51% 9
8. Mini Cooper
1.6 3d Hatchback, 6 speed Man, Petrol
£18,005 £9,240 49% 10
9. Mercedes C-class
1.6 4d Saloon, 6 speed Man, Petrol
£27,740 £11,350 59% 5
10. Mercedes A-class
1.6 5d Hatchback, 6 speed Man, Petrol
£18,890 £9,160 52% 8

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