Features
Brand-new cars are bad investments
Most mainstream cars lose a third of their value in the first year of their time on the road, and the vast majority are worth less than half their original price after three years. Make sure you don't lose out to depreciation: here are some handy hints and points to consider.
Brand image
The German brands continue to enjoy high prestige. Audi, BMW, Mercedes and Volkswagen models all return good residual (resale) values compared to other cars of their type.
This holds true even for smaller cars: a
Golf is considered smarter than, say, a
Kia Cee'd or
Hyundai i30, even though the two Korean cars are just as well-built and reliable. However, large executive cars are particularly brand-sensitive - the value of big cars like the
Peugeot 607 and
Citroen C6 plummets, and the
Jaguar XJ does not hold its value that well either. An exception to this rule, however, is the much-underrated but entirely unloved
Volkswagen Phaeton...
Japanese cars have a good reputation for reliability and are thus popular with second-hand buyers. The
Honda Jazz, for example, returns a higher proportion of its original new price at three years old than any other supermini. Demand for practical, value-for-money Skodas is high these days (the
Fabia holds its value almost as well as the very closely-related
Volkswagen Polo).
For the second-hand buyer there is plenty to be cheerful about and they don't have to go for dog-tired motors with bits hanging off. Some brands have a strong following and even devoted fan clubs. Saab and Subaru owners, in particular, look after their cars and good, well-looked-after second-hand examples can be snapped up at knockdown prices.
