The 8 Cars That Hold Their Value The Best In 2023
In the UK, cars represent the most valuable financial asset for over 9.1 million individuals. Yet, there’s a startling trend among many motorists: a failure to monitor their vehicle’s worth, underpinned by the assumption that its value perpetually drops at a uniform pace.
Contrarily, the reality of car depreciation is far from linear, making the rule of averages inapplicable to a vast majority of vehicles. When you purchase a new car, or one that’s new to you, it’s a given that its value will wane. However, predicting the exact rate of this depreciation, which can occasionally even spike, remains a challenging endeavour.
Why Do Cars Depreciate?
Cars, like many other tangible assets, depreciate in value over time. Several factors contribute to this depreciation:
- Wear and Tear: As a car is used, its components wear down, and the likelihood of needing repairs increases. This natural wear and tear reduce the car’s overall reliability and appeal, contributing to its decline in value.
- Advancements in Technology: New car models are released yearly, often with advanced technology, improved fuel efficiency, and modern features. Older cars, in comparison, may lack these enhancements, making them less attractive to potential buyers.
- Market Demand: Cars that are no longer in demand or have become outdated in terms of style or functionality will see a steeper decline in value. For instance, as electric vehicles become more popular, traditional petrol cars might face higher depreciation rates.
- Economic Factors: Macroeconomic conditions can also influence car values. During a recession, for example, demand for vehicles may decrease, leading to lower resale values.
- Mileage: High mileage can be a sign of increased wear and tear, potentially indicating to buyers that the car might require more maintenance or repairs soon. This perception can lead to a reduced resale value.
- Reputation of the Brand/Model: Some car brands and models are known for their longevity and reliability. If a particular model is known for frequent malfunctions or recalls, its value can decrease more rapidly.
- Accidents and Repairs: A history of accidents or significant repairs can drastically lower a car’s resale value. Even if repairs are carried out professionally, the mere fact that a car has been in an accident can deter potential buyers.
- Time: Simply put, the older a car gets, the less it’s worth. As time passes, newer models with updated features enter the market, making older models seem less appealing.
While cars are essential for many people’s daily lives, their value is affected by a myriad of factors, from the physical condition of the vehicle to broader market and economic trends.
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How To Track Your Cars Depreciation?
Tracking your car’s depreciation can provide valuable insights into its current market value and how it might fare in the resale market. Here’s a step-by-step guide to help you keep tabs on your vehicle’s depreciation:
- Start with the Original Value: Make a note of the original price you paid for the car. This will be the starting point from which you’ll measure the depreciation.
- Check Online Valuation Tools: Websites such as Parkers, What Car?, and Auto Trader offer free online car valuation tools specific to the UK market. By inputting details about your car, including make, model, age, and mileage, you can get an estimated current value.
- Consult the CAP (CAP HPI): The CAP (originally known as Car Auction Prices) is a trusted source in the UK for automotive data. Their tools can provide you with a comprehensive depreciation curve for your specific vehicle model.
- Review Annual Depreciation Rates: On average, a new car will lose approximately 20% of its value in the first year and then 15% each subsequent year. However, this rate can vary based on the factors mentioned earlier. Be sure to adjust this generic rate based on the make, model, and other specifics of your car.
- Monitor the Mileage: The number of miles you drive can significantly impact your car’s value. In the UK, the average annual mileage is around 7,000-10,000 miles. If your mileage is significantly higher or lower, it can affect your car’s depreciation rate.
- Stay Updated on Market Trends: Keep an eye on automotive news and trends in the UK. Shifts in consumer preference, such as a move towards electric vehicles, can influence the depreciation of certain car models.
- Regular Maintenance: While this doesn’t directly track depreciation, maintaining your car in good condition can slow its rate of depreciation. Keep a record of all services, MOT tests, and repairs, as a well-maintained vehicle log can increase your car’s resale value.
- Consult Experts: Occasionally, it might be beneficial to speak with local car dealerships or car valuation experts. They can offer insights into how specific models are faring in the current market and provide a hands-on valuation.
- Understand External Factors: Economic shifts, technological advancements, or even legislation changes (like Low Emission Zones in certain cities) can influence the demand for certain vehicles and thus their depreciation.
By proactively monitoring these elements and regularly checking resources tailored to the UK market, you can have a clearer understanding of your car’s depreciation, ensuring you’re better informed if you ever decide to sell or trade in your vehicle.
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Top 8 Car Models with the Best Resale Value in 2023
Drawing from sales data over the past year, the following car models have demonstrated the highest retention in value compared to their original price.
1. Land Rover Defender
- Retained value: 74.97%
- Average retained value: £56,710
The Land Rover Defender’s low depreciation in the UK can be attributed to several factors, making it a highly sought-after vehicle in both new and used markets. Here are some reasons why the Defender holds its value so well:
- Iconic Status: The Land Rover Defender has a rich heritage and is synonymous with British motoring history. Its iconic design and reputation have secured its place as a beloved classic.
- Durability and Reliability: Defenders are known for their ruggedness and capability to handle challenging terrains. Their build quality ensures that they last a long time, making them desirable for those looking for a durable off-roading vehicle.
- Limited Production Runs: For several years, especially before the newer models were introduced, the production numbers for Defenders were limited, leading to higher demand and, consequently, higher resale values.
- Versatility: The Defender’s design makes it suitable for various purposes, from urban driving to challenging off-road expeditions. This multi-purpose appeal broadens its market.
- Unique Design: The Defender has a distinctive look that sets it apart from other SUVs on the market. Its design has remained relatively consistent, ensuring it doesn’t feel ‘outdated’ as quickly as some other models might.
- Brand Loyalty: Many Defender owners are repeat buyers who value the vehicle’s capabilities and style. This loyalty ensures a consistent demand in the resale market.
- Global Appeal: While the Defender holds special significance in the UK, its appeal is global. Its reputation as a reliable off-roader means it’s in demand in various parts of the world, ensuring a broader resale market.
- Customisation and Upgrades: The Defender’s modular design makes it ripe for customisation. Many enthusiasts invest in upgrades and modifications, further enhancing the vehicle’s value.
- Recent Relaunch: The recent relaunch of the Defender with modern features and technology, while retaining its classic look, has rejuvenated interest in both the new and older models.
- Niche Market: There aren’t many vehicles that directly compete with the Defender in terms of its off-road prowess combined with its iconic status. This lack of direct competition helps it maintain a strong position in the market.
The Land Rover Defender’s blend of history, functionality, and iconic status has solidified its place as a vehicle with strong value retention in the UK and beyond.
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2. Porsche Macan
- Retained value: 70.49%
- Average retained value: £42,352
The Porsche Macan’s low depreciation can be attributed to a combination of factors that contribute to its strong resale value:
- Brand Prestige: Porsche is a highly respected brand known for producing luxury vehicles with top-notch performance and build quality. Owning a Porsche is often seen as a status symbol, enhancing the demand for their cars in the resale market.
- Performance and Engineering: Porsche’s reputation for engineering excellence ensures that Macan owners experience a high-performance SUV that provides both speed and agility, unlike many of its competitors.
- Quality and Reliability: Porsches, including the Macan, are built with rigorous quality standards. Their vehicles are known for their reliability, making them sought after in the used car market.
- Limited Supply: Porsche has a strategy of producing fewer vehicles than the demand to maintain exclusivity. This limited supply ensures that used Macans are not overly abundant in the secondary market, helping to keep resale values high.
- Stylish Design: The Macan’s design strikes a balance between sportiness and luxury. Its timeless aesthetics ensure it remains attractive to buyers, even as newer models emerge.
- Versatility: The Macan offers the performance of a sports car with the practicality of an SUV. This blend of features means it appeals to a broad audience, from driving enthusiasts to families.
- Safety Features: Equipped with state-of-the-art safety features, the Macan is not only fun to drive but also ensures the well-being of its occupants, further increasing its attractiveness to a broader market segment.
- Consistent Demand: The compact luxury SUV market has witnessed consistent growth, with many consumers preferring vehicles that offer both luxury and practicality. The Macan fits this bill perfectly.
- Strong Reviews: The Macan often receives strong reviews from auto journalists and experts, citing its driving dynamics, interior quality, and overall performance.
- Tech Upgrades: Porsche ensures that its vehicles, including the Macan, are equipped with the latest technology features, ensuring that even older models remain relevant in a tech-savvy market.
The Porsche Macan’s low depreciation can be credited to the brand’s reputation, the vehicle’s performance, quality, and its fit within the growing luxury compact SUV segment. As a result, it maintains a strong position in the resale market, ensuring its owners benefit from a robust return on their investment.
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3. Volkswagen ID. Buzz
- Retained value: 70.11%
- Average retained value: £41,712
The Volkswagen ID. Buzz’s ability to hold its value can be attributed to a strong mix of branding, market trends, and the vehicle’s unique characteristics. Here are some reasons for the Volkswagen ID. Buzz’s strong value retention:
- Nostalgic Charm: Drawing inspiration from the iconic VW Microbus, the ID. Buzz taps into a sense of nostalgia that resonates with many. This classic design, paired with modern features, creates a unique appeal that’s both familiar and forward-looking.
- Rising Interest in EVs: As global momentum shifts towards sustainable and green mobility, electric vehicles (EVs) are experiencing growing demand. The ID. Buzz, being an EV, benefits from this trend, making it a desirable option in both new and used markets.
- Reliable Brand: Volkswagen’s reputation for building dependable and well-engineered vehicles gives potential buyers confidence in the ID. Buzz’s longevity and performance.
- Distinctive Positioning: The ID. Buzz stands out in the EV market due to its combination of retro design and state-of-the-art technology. This uniqueness can help the vehicle maintain higher resale values.
- Innovative Technology: The ID. Buzz boasts advanced technology features, from its electric powertrain to interior amenities and driver assistance systems. Such features can enhance its appeal in the resale market.
- Environmental Consciousness: With an increasing number of consumers prioritising eco-friendly choices, electric vehicles like the ID. Buzz, which offer a reduced carbon footprint, can be more attractive, positively impacting their depreciation rate.
- Lower Operational Costs: The operational costs associated with EVs—like charging compared to refuelling and reduced maintenance due to fewer moving parts—can be lower than traditional vehicles. This cost efficiency can be a selling point for potential buyers.
- Government Incentives: Grants, or tax reductions for electric vehicle buyers are available. These incentives not only reduce the initial purchasing cost but can also indirectly support higher resale values.
- Broad Appeal: The design and functionality of the ID. Buzz make it suitable for various consumers, from families to businesses to those looking for a versatile vehicle with a touch of nostalgia.
- Anticipated Demand: If Volkswagen manages the production and availability of the ID. Buzz to match or slightly underserve demand, it could ensure that the vehicle doesn’t flood the market, therefore helping in retaining its value.
The Volkswagen ID. Buzz holds its value due to its distinctive design, positioning in the ever increasing EV market, and the strong reputation of its parent brand. The vehicle’s blend of nostalgic aesthetics and advanced technology positions it uniquely in the automotive market, contributing to its strong value retention.
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4. Range Rover Evoque
- Retained value: 69.83%
- Average retained value: £32,912
The Range Rover Evoque’s ability to retain its value can be attributed to a combination of brand reputation, design appeal, and market positioning. Here are several factors explaining why the Range Rover Evoque holds its value so effectively:
- Brand Prestige: The Land Rover name, under which the Range Rover Evoque falls, is synonymous with luxury, quality, and durability. This prestige has long attracted a dedicated customer base willing to pay a premium for their vehicles, both new and used.
- Distinctive Design: The Evoque’s sleek and contemporary design sets it apart from many other SUVs in its class. Its eye-catching aesthetic has a timeless appeal, ensuring it remains desirable even as newer models emerge.
- Performance and Capability: Known for its off-road prowess combined with urban agility, the Evoque offers a driving experience that’s both luxurious and capable. This dual functionality makes it attractive to a broad range of buyers.
- High-Quality Interiors: The interior craftsmanship, with attention to detail and use of premium materials, ensures that the Evoque offers a luxurious driving and riding experience. Such quality interiors tend to age well, further enhancing resale value.
- Limited Supply: Land Rover typically maintains a balance between supply and demand. By not saturating the market with an excessive number of vehicles, the Evoque’s value remains stable.
- Advanced Technology: Equipped with the latest tech features and driver-assist systems, the Evoque remains relevant and competitive in the market, which can enhance its resale value.
- Safety Features: The Evoque is built with a focus on safety, incorporating advanced safety technologies and robust construction. A strong safety profile can bolster a vehicle’s resale value.
- Global Recognition: The Range Rover Evoque enjoys a strong global presence. Its appeal isn’t limited to one region, ensuring a broad resale market.
- Diverse Customer Base: The Evoque caters to a variety of buyers, from city dwellers looking for a luxury compact SUV to off-road enthusiasts seeking a stylish yet rugged vehicle.
- Consistent Updates: Land Rover has been proactive in updating the Evoque with fresh designs, newer technology, and performance improvements over the years. These updates keep the model line fresh and in-demand.
The Range Rover Evoque’s value retention can be credited to its blend of luxury, performance, and style, backed by the longstanding reputation of the Land Rover brand. Its unique position in the luxury compact SUV market ensures that it remains a sought-after vehicle in both primary and secondary markets.
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5. Porsche Taycan
- Retained value: 69.35%
- Average retained value: £69,817
The Porsche Taycan’s ability to retain its value can be attributed to a combination of brand legacy, technological innovation, and market positioning. Here’s a deeper look into why the Porsche Taycan holds its value so effectively:
- Brand Prestige: Porsche is an iconic brand, historically associated with luxury, performance, and engineering excellence. This brand reputation, steeped in a legacy of producing high-quality sports cars, provides a strong foundation for all its models, including the Taycan.
- Electrification Revolution: As the automotive world shifts towards electrification, electric vehicles (EVs) like the Taycan, especially from renowned brands, are in high demand. Being Porsche’s first all-electric sports car, the Taycan holds a special place in the EV market.
- Exceptional Performance: The Taycan has received acclaim for its outstanding performance, rivalling traditional internal combustion-engined sports cars. Its impressive acceleration, top speed, and driving dynamics have made it particularly desirable among enthusiasts.
- Cutting-Edge Technology: The Taycan comes equipped with the latest in automotive technology, from its advanced battery management system to its state-of-the-art infotainment and driver assistance features. Such technological prowess ensures it remains competitive and sought-after in the resale market.
- Luxurious Craftsmanship: True to Porsche’s legacy, the Taycan boasts meticulously crafted interiors, featuring high-quality materials and attention to detail, which contribute to its lasting appeal.
- Limited Competition: While the electric car market is growing, there are still limited competitors in the high-performance luxury EV segment. The Taycan’s uniqueness in this space contributes to its strong value retention.
- Durability and Reliability: Porsche’s commitment to quality ensures that the Taycan is not just a performance marvel but also a reliable and durable vehicle. This reputation boosts confidence in second-hand buyers.
- Environmental Consideration: As the world becomes more environmentally conscious, EVs are naturally gaining traction. The Taycan, being a high-performance yet zero-emission vehicle, caters perfectly to the emerging eco-conscious premium market segment.
- Strong Global Demand: The Taycan, being a ground breaking model for Porsche, has piqued interest globally. This widespread demand ensures that its resale value remains high in various markets.
- Strategic Production: Porsche’s strategic approach to production, ensuring that supply does not drastically outstrip demand, can help maintain the Taycan’s exclusivity and, by extension, its resale value.
The Porsche Taycan’s impressive value retention can be credited to its unique position as a high-performance electric vehicle from a brand renowned for its sports car heritage. Its blend of performance, luxury, and sustainability ensures it remains a coveted asset in both the primary and secondary automotive markets.
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6. Lotus Emira
- Retained value: 67.57%
- Average retained value: £52,700
The Lotus Emira’s value retention can be attributed to several factors that encompass both the brand’s heritage and the car’s unique offerings. Here’s why the Lotus Emira holds its value so well:
- Brand Heritage: Lotus has a storied history in both racing and road car production. Renowned for its focus on lightweight construction and exceptional handling, a new Lotus model like the Emira carries with it the weight of this legacy.
- Unique Market Position: Lotus cars, including the Emira, cater to a niche of enthusiasts who prioritise driving dynamics and a pure driving experience. This unique position ensures that the Emira is sought after by a dedicated clientele.
- Limited Production: Lotus traditionally doesn’t produce cars in the same vast quantities as larger manufacturers. This limited production can create an aura of exclusivity around its models, helping to maintain value.
- Innovative Engineering: Staying true to Lotus’s ethos of “simplify, then add lightness,” the Emira boasts advanced engineering solutions to enhance performance without adding unnecessary weight.
- Modern Design: The Emira’s design is contemporary while still echoing some classic Lotus elements. Its aesthetics appeal to both long time Lotus fans and new enthusiasts.
- Performance and Handling: Lotus’s reputation for producing cars with outstanding handling and road dynamics ensures that models like the Emira are in demand among driving purists.
- Quality Interiors: The Emira features improved interior quality and modern tech compared to some of its predecessors, making it more appealing in the modern sports car market.
- Anticipation and Buzz: As one of the newer models from Lotus, the Emira generated significant anticipation and buzz upon its announcement and release. This kind of attention can often translate to strong initial sales and value retention.
- Strategic Brand Revival: The Emira is a crucial part of Lotus’s plan to revitalise its brand and expand its market presence. Being a flagship of this revival, it holds significant value.
- Competitive Pricing: While positioned as a premium sports car, the Emira’s pricing is competitive, ensuring it offers good value for money. This balance can help sustain demand in the secondary market.
The Lotus Emira’s value retention is a by product of the brand’s rich heritage, the car’s engineering prowess, its modern design, and its position within Lotus’s strategic roadmap. Its blend of tradition and innovation ensures it remains an attractive proposition in both the new and used car markets.
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7. Porsche 911
- Retained value: 67.56%
- Average retained value: £88,042
The Porsche 911’s remarkable value retention can be attributed to a blend of brand cachet, timeless design, and consistent performance. Here’s a deeper dive into why the Porsche 911 holds its value so effectively:
- Iconic Status: The Porsche 911 is more than just a car; it’s an icon. Its silhouette is instantly recognisable and has remained largely consistent since its inception in 1964. This timeless design ensures it never truly goes out of fashion.
- Consistent Performance: Over the years, the Porsche 911 has earned a reputation for delivering consistent, top-tier performance. Whether for daily driving or track days, the 911 is known to perform reliably.
- Brand Prestige: Porsche, as a brand, is synonymous with luxury and performance. Owning a Porsche, especially a 911, carries a certain status and prestige that many car enthusiasts aspire to.
- High-Quality Build: The craftsmanship and attention to detail in every Porsche 911 contribute to its longevity and durability. A well-maintained 911 can perform optimally for years, making it an attractive buy even in the second-hand market.
- Broad Range of Variants: The 911 range has expanded over the decades to include various models – from the Carrera to the Turbo S, and from the Targa to the GT3. This wide variety ensures there’s a 911 for different preferences and budgets.
- Enthusiast Community: The 911 has cultivated a passionate enthusiast community. Clubs, forums, and events centred around the 911 create a tight-knit community that values and preserves these cars.
- Limited Depreciation: Historically, certain 911 models have not only held their value but, in some cases, even appreciated. This reputation can boost buyer confidence, knowing that their investment won’t depreciate rapidly.
- Continuous Evolution: While retaining its iconic shape and core characteristics, Porsche continuously innovates and updates the 911, ensuring it remains technologically advanced and relevant.
- Global Recognition: The Porsche 911 enjoys global acclaim and demand. Its universal appeal ensures a wider resale market, aiding in value retention.
- Safety and Features: Equipped with state-of-the-art safety features and amenities, the Porsche 911 offers a blend of luxury and performance, further enhancing its desirability.
The Porsche 911’s enduring value retention is rooted in its iconic status, unparalleled performance, and the prestige associated with the brand. Its blend of heritage and modernity ensures that it remains one of the most sought-after vehicles in both the primary and secondary automotive markets.
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8. MG4 EV
- Retained value: 66.49%
- Average retained value: £19,050
The MG4 EV follows the general trajectory of electric vehicles (EVs) and MG’s branding, which infers several factors that contribute to its low depreciation:
- Affordable Entry Point: The MG4 EV, like some of MG’s other models, has been priced competitively, it offers buyers an affordable entry into the electric vehicle market. This is leading to a broader base of buyers, keeping resale values high.
- Reliable Battery Technology: The longevity and reliability of the battery can significantly impact an EV’s resale value. The MG has integrated advanced battery technology in the MG4 EV that promises long life and minimal degradation, this is a major factor in its value retention, even over other modern EVs.
- Warranty & Support: A strong manufacturer warranty, especially concerning the battery and electric drivetrain, is boosting buyer confidence. This assurance is helping the MG4 EV maintain its value.
- Rising Demand for EVs: With increasing awareness of environmental issues and the global push for greener transport solutions, the demand for EVs is steadily growing. Early MG4 EV reviews are very strong and it is building a solid reputation. It will benefit from this rising demand, ensuring low depreciation.
- Total Cost of Ownership: EVs have fewer moving parts than traditional combustion engine vehicles, which currently results in lower maintenance costs. The MG4 EV proves cost-effective in terms of maintenance and running costs, and so it will remain a more attractive option in the resale market.
- Features and Technology: Modern consumers expect the latest technology and safety features in their vehicles. The MG4 EV is well-equipped in this are, as a well rounded combination of performance and reliability.
- Government Incentives: The UK government has to date offered incentives for electric vehicle buyers. Such incentives reduce the effective purchase price and, consequently, the depreciation rate of the MG4 EV.
- Brand Evolution: MG has been working on rebranding and re-establishing itself in the modern auto market. Positive reception of their newer models, like the potential MG4 EV, are boosting the overall brand value and, in turn, the vehicle’s resale value.
- Unique Selling Points: If the MG4 EV offers unique features or capabilities not found in competing vehicles, this differentiation can help in maintaining its value over time.
- Evolving Infrastructure: As EV charging infrastructure continues to expand and improve, owning and operating an EV becomes more convenient. This broader acceptance and ease of use positively affects the depreciation rate of EVs like the MG4.
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