Buying a new car is an exciting experience, but one crucial factor that often goes overlooked is depreciation. This is the rate at which a vehicle loses value over time, and it can significantly impact the overall cost of ownership.
While fuel consumption, servicing, and road tax are all important expenses, depreciation can be the single largest cost a car owner faces. Understanding which cars lose value the fastest can help buyers make more informed decisions and potentially save thousands of pounds.
1. Vauxhall Corsa Electric: The Biggest Loser
The Vauxhall Corsa Electric, though a popular choice, experiences significant depreciation. Originally priced at approximately $37,000, it retains only 28.6% of its value after three years, falling to around $10,570.
While it offers a respectable driving range of 246 miles and a good level of standard equipment, its rivals, such as the MG4, provide better driving experiences and retain their value more effectively. The Corsa Electric’s disappointing Euro NCAP safety rating and reliability issues further contribute to its poor resale value.
2. DS 9: A Luxury Sedan That Loses Value Fast
The DS 9 strives to be a luxury alternative to German executive cars, but its depreciation suggests otherwise. Originally priced at approximately $78,800, it retains only 29.4% of its value after three years, dropping to around $23,200.
While it offers a comfortable ride, low noise levels, and a well-finished interior, its sluggish infotainment system, limited rear headroom, and practicality issues make it less appealing. The rapid depreciation makes it a tempting option for used car buyers looking for an affordable luxury sedan.
3. Mazda MX-30: Expensive and Short-Range
Mazda’s first electric vehicle, the MX-30, faces challenges with both pricing and practicality. Originally priced at approximately $41,300, it retains only 30.6% of its value after three years, dropping to around $12,600.
A major drawback is its limited electric range of just 124 miles, making it less viable for long-distance drivers. Additionally, its unique rear-hinged doors can be inconvenient, and its boot space is smaller than competitors like the Kia Niro EV.
Despite a well-designed infotainment system and decent handling, its high depreciation makes it a risky purchase.
4. Jeep Compass: Off-Roading at a Cost
The Jeep Compass, renowned for its off-road capabilities, struggles with depreciation. Originally priced at approximately $57,000, it retains only 31.1% of its value after three years, dropping to around $17,700.
While it provides a spacious interior and respectable equipment levels, its refinement issues, lightweight steering, and small boot size make it less appealing than competitors. The plug-in hybrid model offers a small electric range of 32 miles, but the overall depreciation makes it a costly investment.
5. Audi A8: Luxury with Heavy Depreciation
The Audi A8, a high-end luxury sedan, surprisingly experiences rapid depreciation. Originally priced at approximately $105,300, it retains only 31.4% of its value after three years, dropping to around $33,000.
Despite offering a supremely comfortable ride, spacious interior, and premium build quality, its high depreciation means that buyers could lose the equivalent of a new Range Rover Evoque in just three years.
The automatic gearbox is also criticized for being sluggish, making the A8 less desirable compared to rivals like the Mercedes S-Class.
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6. BMW 8 Series: High Performance, Low Retention
The BMW 8 Series, specifically the M850i xDrive model, experiences significant depreciation. Originally priced at approximately $150,700, it retains only 32.2% of its value after three years, dropping to around $48,500.
While it delivers an exhilarating driving experience with its 523bhp V8 engine and high-tech infotainment system, its high running costs and depreciation make it a poor investment. Buyers looking for a sporty grand tourer may find more value in other brands that hold their worth better.
7. Lexus UX300e: Uninspiring and Unprofitable
Lexus is known for its reliability, but the UX300e electric SUV depreciates rapidly. Originally priced at approximately $65,100, it retains only 32.5% of its value after three years, dropping to around $21,100.
A major drawback is its limited real-world range of 170 miles, which is shorter than competitors like the Tesla Model Y. Additionally, its slow charging speed and cramped rear-seat space reduce its appeal. While it does come well-equipped, these drawbacks contribute to its high depreciation rate.
8. DS 3: A Small SUV with Big Depreciation
The DS 3 E-Tense, despite its premium ambitions, struggles with depreciation. Originally priced at approximately $39,800, it retains only 31.69% of its value after three years, dropping to around $13,000.
Although it has a stylish interior and offers a comfortable ride, its high price tag, sub-par electric range, and cramped rear seats make it a tough sell. In contrast, competitors like the Hyundai Kona Electric and Kia Niro EV provide better value and practicality.
9. Audi A6: Plug-in Hybrid Pitfalls
While the Audi A6 is a well-regarded luxury sedan, the plug-in hybrid version experiences significant depreciation. Originally priced at approximately $77,400, it retains only 32.72% of its value after three years, dropping to around $25,300.
Although it offers a quiet ride, spacious interior, and strong build quality, its complex infotainment system and hesitant automatic gearbox make it less enjoyable to drive. The loss of boot space due to the battery also affects its practicality, making it a less attractive option compared to petrol or diesel variants.
10. Peugeot e-208: Compact but Costly
The Peugeot e-208, a compact electric hatchback, depreciates more quickly than its rivals. Originally priced at approximately $38,300, it retains only 33.1% of its value after three years, dropping to around $12,700.
While it boasts a decent driving range of 224 miles and a stylish interior, its high purchase price and limited rear-seat space make it less competitive.
Additionally, its unconventional i-Cockpit layout may not suit all drivers. Buyers looking for a small electric car with better value retention might consider alternatives like the BYD Dolphin or MG4.
Depreciation is an often-overlooked but critical factor in car ownership. The models highlighted in this list lose significant value over a short period, making them risky investments for new car buyers.
However, for those looking at the used car market, these vehicles may present opportunities for great deals.
To minimize losses, buyers should consider depreciation alongside other costs such as fuel, insurance, and maintenance before making a purchase. Being informed about which cars hold their value best can help save money in the long run.
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