As the cost of motoring continues to climb, with record highs in 2023 and predictions of further increases in petrol prices, insurance, and car repairs in 2024, selecting a cost-effective vehicle is becoming increasingly crucial for UK drivers.
A recent study by Uswitch Car Insurance highlights the significant impact of depreciation on vehicle value. According to the analysis, which examined factors such as the average number of listings, median used price, and depreciation rate over a three-year period, the average car loses over half (54.7 per cent) of its value, with the top ten models averaging a depreciation loss of approximately £10,000.
Gallery: 2019 Peugeot 2008
Leading the list of vehicles that depreciate the most is the Peugeot 2008. This popular model for first-time car buyers sees a staggering 68 per cent drop in value over three years. Originally priced at £17,164, the Peugeot 2008's value plummets to £11,671, representing an average loss of £5,492.
In second place is the MG ZS, an SUV that depreciates by 67 per cent within the same period. This results in an average financial hit of £4,054 for its owners. Rounding out the top three is the Audi A3, an entry-level premium model that also experiences a 67 per cent depreciation rate. Owners of the Audi A3 can expect an average loss of £7,720 over three years.
Cars that depreciate the most in the UK (according to Uswitch Car Insurance)
| Rank | Car | Listings | Median used price | Depreciation rate (3 years) | Average loss | The average price of car after loss |
| 1 | Peugeot 2008 | 3,167 | £17,164 | 68% | £5,492 | £11,671 |
| 2 | MG ZS | 2,433 | £12,278 | 67% | £4,054 | £8,226 |
| 3 | Audi A3 | 7,690 | £23,394 | 67% | £7,720 | £15,673 |
| 4 | Peugeot 3008 | 3,046 | £20,531 | 57% | £8,828 | £11,702 |
| 5 | Kia Sportage | 5,613 | £28,794 | 54% | £13,245 | £15,548 |
| 6 | Vauxhall Mokka | 2,159 | £17,081 | 50% | £8,540 | £8,540 |
| 7 | Ford Kuga | 5,158 | £21,666 | 48% | £11,266 | £10,399 |
| 8 | Vauxhall Corsa | 8,431 | £13,150 | 46% | £7,101 | £6,049 |
| 9 | Skoda Karoq | 1,389 | £18,769 | 45% | £10,322 | £8,446 |
| 10 | Hyundai Kona | 2,051 | £25,687 | 45% | £14,127 | £11,559 |
The study also revealed that the Volkswagen Golf is the most in-demand second-hand car, with almost 12,000 listings, followed by the Ford Fiesta and Ford Focus. Bear in mind the research is based on data obtained by Uswitch Car Insurance and doesn't have the same scope as the generalised used car sales data, which the SMMT distributes. Hence the difference between the most popular used cars in the UK according to the different sources.
UK used car market: more insights
Source: Uswitch Car Insurance