KNOW CARS THAT BURN CASH QUICKEST
Buying new cars is anything but something to do with choice. You need to ask yourself: does the car really need to be fresh off the production line? This is what you need to know.
On average, a new car loses almost half of its value in the first three years, and some lose their value even faster. That’s a massive whack to lose on such an expensive purchase. Even a car that’s one or two years old or an ex-demo car is typically far better value than a brand new one.
Top 10 cars that burn cash quickest
| Car | New price | Value after three years of ownership/36,000 miles | % remaining |
| PEUGEOT ION 5dr Auto | 33,100 | 5,725 | 17.3% |
| CITROEN C ZERO 5dr Auto | 33,100 | 5,975 | 18.1% |
| MITSUBISHI I-MIEV 5dr Keiko Auto | 29,990 | 6,475 | 21.6% |
| AIXAM CROSSLINE GTR 3dr Auto | 12,370 | 3,500 | 28.3% |
| CITROEN C4 1.6 VTi VTR+ 5dr Auto | 18,535 | 5,650 | 30.5% |
| VAUXHALL ZAFIRA 1.7 CDTi ecoFLEX Design [110] 5dr | 24,325 | 7,425 | 30.5% |
| FIAT FIORINO 1.3 Multijet 95 Adventure 5dr [5 seat] Start Stop | 16,892 | 5,175 | 30.6% |
| MG MOTOR UK MG6 1.8T S 5dr | 15,141 | 4,750 | 31.4% |
| VAUXHALL CORSA 1.3 CDTi [95] ecoFLEX S 3dr [Start Stop] | 14,285 | 4,600 | 32.2% |
| CITROEN C4 1.6 VTi VTR+ 5dr | 17,565 | 5,700 | 32.5% |
Source: Valuation data provider Cap.co.uk, March 2015.
The models that hold their value
As mentioned in the point above, the biggest problem with buying a new car is that they lose their value so quickly. Not surprisingly then, the amount your car slumps in value over time is typically the single biggest cost, and hence a key consideration.
Some models shed cash quicker than others, meaning you’ll get a lot less when you come to sell it on. So check this out before hunting for a new model (especially if you plan to sell after a few years).
What car then has best depreciation calculator to see how much value a model will hold, plus its annual rate of depreciation? The top ten seem to change on a regular basis so do your research, but here’s a taster.
Top 10 car brands for holding their value
| Rank | Manufacturer | % Lost Per Year |
| 1 | Land Rover | 24% |
| 2 | Jeep | 33% |
| 3 | Tesla | 33% |
| 4 | Mercedes-Benz | 35% |
| 5 | MINI | 35% |
| 6 | Lexus | 35% |
| 7 | Mitsubishi | 35% |
| 8 | Audi | 35% |
| 9 | Mazda | 36% |
| 10 | Dacia | 36% |
Source: Car-valuation service Glass‘s, Sep 2015