The Honda Jazz is Britain's best car for retaining its value according to Parker's annual depreciation report which surveyed almost 300 model ranges.

The Fiat 500 and Seat Ibiza came second and third in the table for the best residual performance.

Kieren Puffett, editor of Parker's, said: “The latest version of the Honda Jazz picks up where the previous model left off as a very desirable used car.

“A combination of incredible flexibility for a vehicle of its size, the interior space of a much larger car and low running costs make it just as appealing to used car buyers as it does to those choosing new. It proved to be the safest investment on four wheels during 2009.”

Residual values from CAP Monitor based on three years or 60,000 miles are:

Jazz 1.2 S (90PS) 42%
Jazz 1.2 SE (90PS) 43%
Jazz 1.4 ES (100PS) manual 44%
Jazz 1.4 EX (100PS) manual 44%

The Parker’s survey uses the value of cars, as if they were being sold privately, in good condition with 10,000 miles on the clock and compares this to their cost as new, 12 months earlier.

Small cars showed they are certainly the safest bet for depreciation, taking 35 of the top 40 places in the index.

The best performers of 2009

1 Honda Jazz (08 on) - £1379
2 Fiat 500 (08 on) - £1460
3 SEAT Ibiza (08 on) - £1552
4 Hyundai i10 (08 on) - £1650
5 Mazda 2 (07 on) - £1702
6 Kia Picanto (04 on) - £1760
7 VW Fox (06 on) - £1781
8 Suzuki Swift (05 on) - £1900
9 Toyota Aygo (05 on) - £2148
10 Mitsubishi i (07 on) - £2271

The biggest losers of 2009

1 Maybach 62 (03 on) - £127,526
2 Maybach 57 (03 on) - £115,253
3 Rolls-Royce Phantom (03 on) - £81,183
4 Bentley Arnage (98 on) - £66,040
5 Ferrari 612 Scaglietti (05 on) - £51,627
6 Mercedes-Benz SL Class AMG (02 on) - £51,381
7 Bentley Cont. Flying Spur (05 on) - £47,080
8 Aston Martin DBS (08 on) - £41,347
9 Bentley Continental GT Coupe - £40,110
10 Ferrari F 430 (05 on) - £37,188