Car Depreciation Calculator UK 2025/26

In the UK, new cars typically depreciate between 15-35% in the first year alone, with the average being around 20-25%. Premium brands like BMW and Mercedes often lose 22-28% initially, while luxury brands like Bentley can lose 30-40%. Value-retention champions like Porsche 911 may only lose 10-15% in year one. The moment you drive off the forecourt, your car typically loses 5-10% of its value.

After the first year, UK cars typically depreciate at 10-15% annually based on remaining value. By year 3, most cars have lost 40-60% of their original value. By year 5, depreciation slows to around 5-10% per year as the car approaches its residual value floor. After 10 years, depreciation typically levels off to 2-5% annually, with condition and mileage becoming more important than age.

Cars that hold their value best in the UK include: Porsche 911 and Boxster (60-70% after 3 years), Land Rover Defender (60-65%), Toyota Land Cruiser (55-60%), Mercedes G-Class (60-70%), and Tesla Model 3 (50-60%). Japanese brands like Toyota and Lexus generally depreciate less than European luxury brands. Limited edition and performance variants typically hold value better than standard models.

Yes, buying a 3-year-old car is often considered the sweet spot in the UK market. By this age, the car has already lost 40-60% of its new value but still has plenty of reliable life left. Many will still have manufacturer warranty remaining and relatively low mileage. The influx of PCP/PCH returns at 3 years means excellent selection. You avoid the steepest depreciation curve while getting a modern, well-specified vehicle.

It varies significantly by brand. Tesla Model 3 holds value similar to premium petrol cars (50-60% after 3 years). However, many other EVs depreciate 10-15% faster than equivalent petrol cars due to rapidly improving technology, range concerns, and uncertainty about battery longevity. As the 2030 petrol ban approaches and charging infrastructure improves, EV depreciation rates are expected to align more closely with petrol vehicles.

The UK average is approximately 8,000 miles per year. Cars significantly above this lose extra value - typically 1-3 pence per mile over average. Low mileage cars (under 5,000/year) command premiums of 5-15%. For example, a 3-year-old car with 12,000 miles might be worth 10-15% more than the same car with 36,000 miles. Very high mileage (100,000+) causes step-drops in value regardless of condition.

Yes, car colour significantly affects resale value in the UK. The most popular and best-selling colours are: white (25% of sales), black (20%), grey (18%), and silver (12%). These neutral colours typically sell faster and for higher prices. Unusual colours like orange, yellow, or bright green can reduce value by 5-15% and significantly extend selling time. For sports cars, red and blue are acceptable; for executive cars, stick to black or grey.

The best time to sell is typically March-April (spring) when buyers are most active. Avoid selling in January (post-Christmas budget squeeze) or immediately after new plate months (March and September) when dealers are flooded with part-exchanges. Convertibles sell best in spring/early summer; 4x4s sell better in autumn/winter. If your car is approaching a major mileage milestone (60k, 100k), sell before reaching it.