Carspring has found that the UK new car market is the second-quickest depreciating in the world – losing an average 51.9% after the first 34,700 miles.
Car buyers in the UK appear to be benefiting from the high volumes of new cars entering the market, with the knock-on effect of large numbers of used cars starting to become available, resulting in falling prices.
The online car selling platform revealed that only New Zealand provides better value for those looking to buy a used car, with Carspring calculating used cars there will have lost 53.67% in value after 34,700 miles.
Measuring used cars for sale in the UK’s five biggest cities, both online and at bricks and mortar retailers, Carspring also found which brands are quickest to lose value and which are slowest.
Taking the top five models from each brand, Carspring discovered that Toyota models lost the most value, at 74.59%, with Peugeot and Honda following behind with 70.19% and 65.94% respectively.
The British-built MINI line-up, Audi and Volkswagen models all held their value best.
Carspring co-founder, Maximilian Vollenbroich, said: “Our data shows that the United Kingdom is very much a second-hand-buyers’ market.
“There’s a huge amount of choice, driving down prices by more than 70% in some cases on cars that have covered just under 35,000 miles – with the reliability of modern cars, that’s almost good-as-new.”
Carspring also put together a Global Used Car Price Index, taking into account currency valuations, VAT and tariffs among others, in which the United Kingdom also finished second, just behind America.
In contrast, Singapore – which levies huge taxes on new cars – was the most expensive country for buying a used car, closely followed by Denmark, Norway and Finland.
China and Turkey were the least depreciating markets of the 24 measured, with new cars losing 29.42% and 29.50% respectively.
Here are the world's top ten most depreciating car markets, according to Carspring's findings:
John - 09/02/2017 16:29
As a (defensive) Toyota employee I'm puzzled where these figures come from 75% depreciation over how long? 34000 miles could be in 10 years. The survey would be fairer if it calculated 36 months of depreciation and not mileage. For an Aygo to drop from £10,000 to 75% of it's value eg £2500 it would need to be about 6 years old.