How to compare depreciation fairly

Depreciation is how much value a car loses over time, usually shown as a percentage of the new price. It's often the biggest cost of owning a new car, which is why it gets so much attention. It's also easy to make the figures say almost anything.

Compare like with like

• Same spec and trim. A base model and a top trim lose value at different rates.
• Similar mileage. A high-mileage example will always look worse.
• Same age. Compare 3-year-old cars with 3-year-old cars.
• Same market. Used values differ a lot between countries. Use UK data for UK cars.

Watch the starting year

If new prices were unusually high in the starting year, every car from that year will seem to lose a lot of value. If the maker later cuts new prices, used prices usually follow, so a car bought before a price cut will look as if it depreciated faster. Check what new cars cost when the comparison starts, and whether prices have changed since.

Use real asking prices

Manufacturer approved-used websites and large dealer groups list the actual prices of cars for sale. They're a better guide than a single anecdote about one car.

See the Depreciation Evidence page for a UK comparison done this way.