Cars are generally regarded as depreciating assets. This means that regardless of how well you service, clean, and care for your car, it will always be worth less than when you bought it.  

You don’t have to grin and bear a big loss, though! There are plenty of cars that hold their value in the UK. The trick is knowing which ones are worth your time.

To help you find a slow-depreciating car, we’ve rounded up the best cars in the UK known for holding their value. We’ve also gone a step further and given you the WORST cars known for depreciating quickly, so you can be sure to steer clear. Let’s jump right in.

13 Cars That Hold Their Value

Some cars lose their value faster than others. The list below shows which cars hold their value best. Make a beeline for these!

1. Honda Jazz

Average New Value: £29,200.00

Average Retained Value: £23,300.00

A popular car for people wanting a reliable, practical, smaller car, the Jazz’s reliability and simplicity mean even older ones still command a respectable price secondhand, making it the UK's best car for holding its value.

2. Ford Ranger

Average New Value: £30,800.00

Average Retained Value: £23,700.00

A favourite with self-employed tradespeople, the Ranger is practical and tax-efficient, as it is registered as a commercial vehicle. The practicality of the Ranger is what makes it so desirable, perfect for anyone looking for a car that holds its value and doesn't require lots of services.

3. Land Rover Defender

Average New Value: £57,500.00

Average Retained Value: £37,300.00

If you’re looking for a new car that will hold its value for a few years, the new Defender is the best-performing car by far - mainly due to the incredible demand. It also provides luxury SUV features and durable off-road features. As long as you look after your Defender, you can expect it to only drop a fraction of the price after a couple of years. 

4. Toyota Hilux

Average New Value: £43,500.00

Average Retained Value: £35,300.00

The third commercial vehicle to appear on the list, the Hilux is famed for its incredible reliability and durability. Other key features of the Hilux include up to 10 years of warranty coverage, a generous load area, and a steady build. With the Nissan Navara being discontinued, the demand for the Hilux will only increase.

5. Toyota Yaris

Average New Value: £15,600.00

Average Retained Value: £11.200.00

Not looking for a pick-up truck? No worries. The Yaris is a top contender for a small city car with great practicality and reliability. It’s been in production for many years, and each generation is as well received as the last. The Yaris holds its value well, so don’t overlook it!

6. Ford Fiesta

Average New Value: £23,600.00

Average Retained Value: £14,900.00

Since its inception in the 1970s, the Fiesta has been a popular small to medium-city car on Britain's roads. However, now that Ford has discontinued this staple model, we suspect the newer ones, especially the STs—the sporty ones—will hold their value well. 

7. Porsche Panamera

Average New Value: £80,100.00

Average Retained Value: £50,900.00

If you’re looking for a luxury car that holds its value well, the Porsche Panamera could be a match for you. This offers a stylish look and excellent driver engagement. Of course, this is a more expensive purchase. However, it depreciates slowly while offering an opulent vehicle experience. 

8. Land Rover Discovery Sport 

Average New Value: £52,700.00

Average Retained Value: £33,400.00

The Land Rover Discovery Sport is a seven-seater that doesn’t depreciate overnight. It also boasts reliable off-road skills, a sleek look, and great interior design. You can use it for country terrains or driving to your local Tescos. Pick the plug-in hybrid p300e for the best performance, as this retains 63% of its initial value.

9. Toyota bZ4X

Average New Value: £42,800.00

Average Retained Value: £27,000.00

The Toyota bZ4X is a fully electric everyday car that might look a tad boring compared to some of the sports cars on this list. However, it has a reputation for reliability, a solid build, and an eco-friendly ethos. Plus, it holds its value well, which is likely necessary for you if you’re on this page!  

10. Audi RS 3

Average New Value: £57,700.00

Average Retained Value: £35,700.00

The Audi RS 3 has a 61.95% depreciation rate, earning it a spot on our list of cars that hold their value well. Yes, this rating means you’ll lose around 38% of the value, but this isn’t much at all compared to competitors. 

11. Mercedes G-Class

Average New Value: £131,300.00

Average Retained Value: £81,800.00

Modern technology, old-school aesthetics, and an excellent reputation—it’s the Mercedes G-Class. This car is by no means a cheap upfront buy. However, it doesn’t lose value after a few years of ownership, making it ideal if you’re looking to invest in a vehicle.

12. Porsche 911

Average New Value: £149,000.00

Average Retained Value: £94,300.00

Another sports car that impresses drivers worldwide, the Porsche 911, unsurprisingly, doesn't lose much value. The best-performing version is the top GT3 variant, which holds up to 63% of its value. The worst performer? The Targa. This holds up to 47% of its value.

13. Range Rover Sport

Average New Value: £92,900.00

Average Retained Value: £59,800.00

The plug-in hybrid p460e Range Rover sport takes the last spot on this list, thanks to its 65% retained value. This is yet another sporty edition that depreciates slower than its peers. So, if you’re ready to go all-in on an investment, check this model out.

Worst Cars For Holding Their Value

Curious about the worst cars in the UK for depreciation? Here’s where not to invest your cash if you’re looking for long-term value. The reasons, as discussed above, are often due to the car's complexity, unreliability or status. 

BMW 5 Series

Average New Value: £48,300.00

Average Retained Value: £18,500.00

BMW cars have a reputation for luxury, driving feel and performance, but these benefits, when new, can become liabilities as the cars age. After five years, expect your 5 series to be worth approximately 45% of its initial cost; after 20, 80% of the value will be lost.

Mercedes C Class

Average New Value: £58,000.00

Average Retained Value: £15,800.00

For reasons similar to those of the 5 Series, buyers of new Mercedes C-Class luxury cars can expect them to drop in value significantly over the first years of ownership.  

Peugeot 2008

Average New Value: £32,000.00

Average Retained Value: £13,300.00

Whilst Peugeot’s stylish SUV may be in vogue, the figures for its value show this to be short-lived. A Peugeot 2008 3-year-old car can be worth little over a third of its value on the forecourt. 

Jaguar F-Pace

Average New Value: £48,300.00

Average Retained Value: £18,500.00

Searching for the Jaguar F Pace depreciation UK? We’re here to deliver the bad news. Another SUV but priced for an entirely different market, the F-Pace is a brilliant bit of cutting-edge engineering and tech. However, this may also be detrimental, as they are worth considerably less after only a few years.  

MG MG6

Average New Value: £16,00.00

Average Retained Value: £7,000.00

It seems that confidence in the rebranded MG cars of the last couple of years is relatively low. The new MG6 and MG3 cars have poor depreciation figures, with 45% of their value lost by the three-year-old mark. 

Can you buy a car as an investment?

Yes, it's possible to buy a car as an investment, but unfortunately, without a crystal ball, it's difficult to predict which cars will be the next big thing.

You may hear and read about relatively mundane cars being worth incredible value now. A notable example is the explosion in prices of old Fords. An ordinary Mark 1 Escort, a run-of-the-mill car in the 1970s and 80s, can now fetch more than a brand-new Ford Kuga.

However, if you have a substantial amount of cash to invest, the game changes. Certain cars, particularly high-end manual Porsches, BMW M cars, and other sought-after models, are almost guaranteed to hold their value. This can provide a reassuring sense of stability in your investment.

What causes depreciation in cars?

Car depreciation is caused by a range of factors. The main ones include:

• Mileage
• Age
• Reliability
• Service history
• Demand
• Fuel economy 
• Warranty length
• Number of owners

The sum of these factors generally gives you the depreciation rate. 

Why do some cars depreciate faster than others?

Depreciation rates for cars depend on various factors, as listed above. An older car that is less in demand and in poor condition will be less valuable than a new, popular car that’s well-maintained.

Cars like the Honda Jazz and Ford Fiesta are typically bought for their reliability, not for style, comfort, or advanced technology. In contrast, cars like the BMW 7 Series and Range Rovers are sought after for their luxury and status.

As these cars age, the small, utilitarian vehicles continue to fulfil their primary purpose reliably, unlike many luxury vehicles. Additionally, luxury cars are often more expensive to repair and maintain, making them less attractive once the manufacturer's warranty expires.

How to save money on depreciation

There are two main ways to save money on depreciation: buy cars that do not depreciate as much or buy cars that have already seen the majority of their depreciation. The former option is great for someone who doesn't need or want fancy gadgets and premium features.  

Most cars do not depreciate in a linear fashion, meaning that the rate of depreciation slows down as the car gets older. So if you like a few more luxuries but don't want to take the hit on a fastly depreciating car, you can buy near the bottom of the curve when the car has already lost 70% of its value.  

What cars hold their value the best UK - The takeaway

Choosing a car that depreciates slowly can help you save money and make a better investment. Hopefully, this list has pointed you in the right direction. 

However, remember that depreciation isn’t the only factor to consider when buying a car! Check out our blog for more buying guides and general information for UK drivers.

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Author - Joseph Law

Joseph has been writing about cars for over seven years and writing for Bumper for over two, blending his passion for automobiles with a talent for storytelling.

Joseph has written about engineering and cars for Autozilla, Komaspec, and several engineering manufacturers. When he's not writing or tinkering with one of his five cars, Joseph dreams of owning an Alfa Romeo 33 Stradale.