UK car depreciation by body type and fuel in 2026

Why this matters

Depreciation is the biggest cost of car ownership — typically 2–3x the cost of fuel, insurance and servicing combined over three years. The car you buy and how long you keep it dictate ownership cost more than driving style or care. Picking a 35% depreciator over a 55% depreciator on a £20,000 car saves £4,000 over three years.

Three-year depreciation by body type (2026)

Typical range for a £20,000 new-list car kept three years to 30,000 miles.

• Compact SUV (Karoq, Tucson, Kuga): 38-48% depreciation. Strongest demand in the segment.
• Full hybrid (Yaris, Corolla, RAV4, Jazz): 35-42%. Best in market.
• Petrol hatchback (Polo, Fiesta, Corsa): 42-52%.
• PHEV (Outlander, Kuga, 330e): 45-55%. Improved from the 2023 low but still soft.
• Petrol saloon (3 Series, A4, C-Class): 45-55%.
• Estate (Octavia, Passat, V60): 48-58%. Slightly worse than the saloon equivalent.
• Used EV — premium (Tesla Model 3, Kia EV6): 38-48%.
• Used EV — older / mainstream (Leaf, Zoe, e-208): 55-70%. Substantial residuals risk on early units.
• Diesel (Euro 6, post-2017): 50-60%.
• Diesel (pre-Euro 6): 60-75%. Avoid for resale-conscious buying.

Brand premium and penalty

On the same body type, three-year residuals vary by ±5-8% based on brand. Toyota and Honda hold the strongest residuals across hybrids and small cars (~5-7% above segment average). Kia / Hyundai are 2–4% above average inside warranty. BMW and Mercedes hold residuals well on saloons but penalise estates and hatches. Renault, Citroen and Vauxhall typically run 4–6% below segment average.

The mileage and condition multipliers

Mileage above 12,000/year accelerates depreciation by ~3–4% per 5,000 miles over average. Condition (paint, interior wear, service history completeness) swings residuals by ±5%. A perfectly-cared-for car with a full main-dealer history sells for 8–10% more than a same-spec example with partial history at three years.

Buying for low depreciation

Three rules. Buy a 2-year-old car instead of new — the steepest depreciation has already happened; year 3 onwards loses 8–12% per year vs 18–22% in year 1. Stick to top-three sellers in each segment for liquidity at resale. Prioritise full hybrids and high-spec mainstream SUVs over saloons and estates if resale matters more than driving feel.