10 Fastest Depreciating Cars In The UK 2023: Top Models To Avoid
Car depreciation is an important factor to consider when purchasing a vehicle. It refers to the reduction in value a new car experiences over time due to wear and tear, age, and other factors. Here we will explore the fastest depreciating cars in the UK on the market in 2023 and the reasons behind their rapid depreciation. Additionally, we will offer some tips on how to minimise depreciation for your vehicle.
Factors Affecting Car Depreciation
Several factors can impact a car’s depreciation rate, including its brand, model, age, mileage, condition, and overall demand in the UK market. External factors such as economic conditions and government policies may also play a big part in determining the highest depreciating cars.
The Impact of Car Depreciation on Owners
For car owners, depreciation can have a significant effect on the resale value of their vehicle. A car with a higher depreciation rate will typically have a lower resale value in a used market compared to a similar car with a lower depreciation rate. This means that, when it comes time to sell or trade in your vehicle, you may receive less money than you initially anticipated from the car buyers in the markets.
How to Minimise Depreciation
There are several ways to minimise depreciation for your new car, including:
- Regular maintenance
- Keeping the mileage low
- Protecting the car’s appearance
- Choosing a car with a lower depreciation rate
Related Reading: Why Buy a New Car?
Top 2 Fastest Depreciating Cars in the UK: Per Category
We have categorised the fastest depreciating cars in the UK based on various vehicle types:
Luxury cars tend to have higher depreciation rates due to their higher initial costs and more specialised market. Some examples include:
- BMW 7 Series
- Mercedes-Benz S-Class
High-performance sports cars often depreciate quickly, as they may have more limited appeal and higher maintenance costs. Examples include:
- Audi R8
- Porsche 911
Electric cars can depreciate quickly due to rapidly changing technology and concerns about battery life. Examples include:
- Nissan Leaf
- Renault Zoe
Large Family Cars
Larger family cars may depreciate faster due to their size and fuel consumption. Examples include:
- Vauxhall Insignia
- Ford Mondeo
Some compact cars can also experience rapid depreciation. Examples include:
- Fiat Punto
- Peugeot 208
Related Reading: How To Add Value To Your Car
WhatCar’s Top 10 Fastest Depreciating Cars
1. BMW 8 Series
This top-tier 8 Series model boasts a twin-turbocharged 4.4-liter V8 petrol engine that generates a staggering 523bhp. This luxurious coupé reaches 0-62mph in a mere 3.7 seconds, accompanied by an enthralling exhaust note.
Inside, ample space and an intuitive infotainment system controlled by a rotary dial ensure comfort and ease of use. Although competitors may offer superior sportiness and comfort, they cannot match the 8 Series’ depreciation rate over three years.
2. Maserati Ghibli
The presence of a V8-powered performance car on this list may not be startling, but the Ghibli’s staggering depreciation over three years warrants attention. Its residual value plummets by over £78,000 – the most significant loss among the vehicles listed here.
Therefore, it’s crucial to relish the driving experience. The Ghibli’s 572bhp 3.8-liter V8 engine ensures rapid acceleration and an exhilarating soundtrack. However, long-distance comfort could be improved, and operating costs may be exorbitant.
3. DS 9
The DS 9 aspired to be an unconventional luxury vehicle, with a PHEV version offering potential low running costs and opulence. Unfortunately, it falls short in infotainment, rear headroom, and practicality. Despite a price comparable to German competitors, the DS 9 car depreciates more rapidly.
4. Audi A8
Occasionally, excellence goes unrewarded. The A8 outperforms its main competitor, the Mercedes S-Class, in refinement and ride quality. Its interior is meticulously crafted, yet it experiences more depreciation than any other luxury vehicle.
Regardless of the chosen variant, the A8 remains extraordinary. The 60 TFSIe plug-in hybrid (PHEV) is ideal for city driving, but the smooth 50 TDI diesel version depreciates the most in three years.
5. Lexus LS
The LS features hybrid technology, with a compact electric motor for urban driving and a 3.5-liter V6 petrol engine for supplementary power.
This combination should yield improved running costs compared to conventional engines, but rear-wheel drive is preferable to the four-wheel-drive model tested here. Despite its exorbitant high prices and significant depreciation, the LS is well-equipped and boasts impeccable interior quality.
6. Mercedes C-Class Cabriolet
7. Peugeot 508 SW
8. Audi S6 Avant
9. Citroën C3
10. Genesis G80
Related Reading: What Car’s 10 Fastest Depreciating Cars 2023
Reasons for Fast Car Depreciation
High depreciation rates can be attributed to several factors, including:
High Maintenance Costs
Cars with high maintenance costs are less attractive to potential buyers, which can lead to faster depreciation.
Some cars have a limited appeal, which can affect their resale value in a second hand market and contribute to faster depreciation. This can be due to their design, performance, or niche market.
Rapidly Changing Technology
Cars featuring technology that becomes outdated quickly, such as electric vehicles or those with advanced features, can see their value decrease rapidly as newer models with updated technology enter the market.
Understanding car depreciation is crucial when purchasing a vehicle, as it can impact the overall cost of ownership and resale value. By being aware of the fastest depreciating models and the factors contributing to the highest depreciating cars, buyers can make informed decisions when choosing a vehicle. To minimise depreciation, consider regular maintenance, keeping mileage low, and selecting a car with a lower depreciation rate.
Related Reading: The Least Depreciating Cars For New Drivers In The UK
Cars That Depreciate The Most: Frequently Asked Questions
What are the most depreciating cars in the UK market?
The most depreciating cars in the UK typically include luxury vehicles, high-performance sports cars, and large SUVs. Some examples are BMW 5 Series, Mercedes-Benz S Class, Jaguar XJ, Maserati Quattroporte, and Cadillac Escalade. These new cars lose their original value quickly due to factors such as high maintenance costs, expensive parts, and rapid technological advancements.
Why do some cars depreciate faster than others?
The factors affecting highest depreciating cars include demand, brand reputation, reliability, and maintenance costs. Fastest depreciating cars often have high initial costs, expensive replacement parts, and less demand in the used car market. This leads to a rapid decline in their original value over time.
How can I avoid buying a fast depreciating car?
To avoid purchasing a fast depreciating car, research the make and model’s resale value, maintenance costs, and reliability of cars. Additionally, look for cars with lower depreciation rates such as Japanese and Korean brands like Toyota, Honda, and Hyundai.
Can buying a used fastest depreciating car be a good investment?
Buying a second hand fast depreciating car can be a savvy move if you’re looking for luxury or performance at a lower cost. However, it’s important to consider factors like higher maintenance costs, potential repair expenses, and overall reliability before making a decision.
How does depreciation affect car insurance?
Car depreciation directly impacts insurance payouts in the event of a total loss or theft. Insurance companies typically base payouts on the actual cash value of the car, which factors in depreciation. As a result, owners of fast depreciating cars may receive lower payouts compared to those with slower depreciating vehicles.
How can I reduce the impact of depreciation on my car?
To minimise the impact of depreciation, maintain your car regularly, keep a detailed service history, and avoid modifications that could decrease its original value. Additionally, limit the mileage and avoid excessive wear and tear on the vehicle. Finally, consider purchasing a car with a lower depreciation rate.
Is leasing a better option for fastest depreciating cars?
Leasing can be a more cost-effective option for the highest depreciating cars, as it allows you to drive a new, high-end vehicle without shouldering the full depreciation burden. However, carefully evaluate the lease terms, monthly payments, and possible end-of-lease charges before making a decision.
What is the average depreciation rate for cars?
The average depreciation rate for cars in the UK is around 15-20% in the first year, with a 10% decrease annually in the following few years. However, this rate varies depending on factors such as the make, model, and overall demand in the used car market.
How does the colour of a car impact its depreciation rate?
The colour of a car can impact its depreciation rate, as certain colours are more popular and retain their value better over time. Classic colours like black, white, and silver generally have lower depreciation rates, while unconventional or bright colours might depreciate faster due to limited demand in the used car market.
Do electric vehicles depreciate faster than traditional cars?
Electric vehicles (EVs) can have higher depreciation rates compared to traditional cars, mainly due to the rapid advancements in battery technology and concerns about battery lifespan. However, some EV models with strong brand reputations and high demand may experience slower depreciation rates, making them more valuable in the long run.
Related Reading: What Is Gap Insurance
Need Gap Insurance?
There are a few different types of policy you can choose from when taking out your Gap Insurance cover with Click4Gap. These depend largely on how you intend to fund the purchase of your vehicle. So what car Gap Insurance is right for you?
If you paid cash for your vehicle, or paid a sizeable deposit, or if you financed it, Combined RTI Gap cover will pay out the shortfall between the cost of your vehicle and the market value at the point of claim, which is the amount your motor insurer will cover. This is cover that will protect you no matter if you use your vehicle for private use or for business.
If you leased your vehicle or it is under a contract hire agreement, Lease/Contract Hire Gap Insurance will cover you for the shortfall on your lease agreement, after your motor insurer settlement. If, for any reason, you change your vehicle within the first 90 days from the start date, we will also arrange to transfer your cover to your new vehicle without hassle or charge.