Car Depreciation Table UK

The headline numbers

Different sources measure slightly differently, but they all draw the same shape: a steep early drop that flattens with age.

Widely used UK depreciation benchmarks
Milestone	Typical value lost	Who says so
End of year 1	15% to 35%	Motorway, RAC
End of year 3	Around 50% to 60%	The AA, RAC
End of year 5	Around 60% to 70%	Motorway
Years 8 to 10	Around 80%	Motorway

The AA's much-quoted figure is that an average new car loses around 60% of its value in the first three years, assuming roughly 10,000 miles a year. The RAC puts the same milestone at 50 to 60%, and notes values keep sliding until around year eight before levelling out.

Depreciation by year: the full table

A £20,000 brand-new car on our three profiles. The percentage is how much of the original price is still in the car. Run your own figures in the depreciation calculator.

Projected value of a £20,000 new car, by depreciation profile
Age	Holds value well	Average	Drops fast
1 year	£17,000 (85%)	£15,000 (75%)	£13,000 (65%)
2 years	£15,300 (76.5%)	£12,750 (63.7%)	£10,400 (52%)
3 years	£13,770 (68.9%)	£10,837.50 (54.2%)	£8,320 (41.6%)
4 years	£12,393 (62%)	£9,211.88 (46.1%)	£6,656 (33.3%)
5 years	£11,153.70 (55.8%)	£7,830.10 (39.2%)	£5,324.80 (26.6%)
6 years	£10,038.33 (50.2%)	£6,655.59 (33.3%)	£4,259.84 (21.3%)
7 years	£9,034.50 (45.2%)	£5,657.25 (28.3%)	£3,407.87 (17%)
8 years	£8,131.05 (40.7%)	£4,808.66 (24%)	£2,726.30 (13.6%)
9 years	£7,317.95 (36.6%)	£4,087.36 (20.4%)	£2,181.04 (10.9%)
10 years	£6,586.16 (32.9%)	£3,474.26 (17.4%)	£1,744.83 (8.7%)

The profiles lose 15%, 25% and 35% in year one respectively, then 10%, 15% and 20% of the remaining value each year after. Real cars flatten out even more as they age, so treat the ten-year figures as the pessimistic end.

The depreciation curve

The same three profiles drawn as a curve: percentage of the original value retained, from new to ten years old.

Why buying used skips the worst of it

The steep first-year drop belongs to the first owner. Buy the same car at three years old and your curve starts on the flat part.

The same average car bought at three years old for £10,837.50
Age	Projected value	Lost that year
4 years	£9,211.88	£1,625.63
5 years	£7,830.10	£1,381.78
6 years	£6,655.59	£1,174.52
7 years	£5,657.25	£998.34
8 years	£4,808.66	£848.59

Over its first three years the £20,000 car shed £9,162.50. Its second owner, paying £10,837.50, loses £6,028.84 over the following five years on the same curve. Same car, a fraction of the pain, which is the whole case for buying at two to four years old.

Which cars hold their value best?

Supply and desirability decide it. Small-run sports cars, sought-after 4x4s and value brands with waiting lists keep well over half their value at three years. Porsche and the Land Rover Defender are the league-table perennials.

At the other end sit big luxury saloons and anything sold heavily to fleets. They flood the used market in volume just as their complexity starts to scare private buyers.

Premium electric cars had a rough 2023 and 2024 on residuals too, though industry data through 2026 shows used EV values recovering and now tracking the wider market.

Trim and engine matter as much as badge. A sensible mid-spec version of a popular car is usually the sweet spot, while an oddball colour or a thirsty engine can put an otherwise strong model in the fast lane of the table above.

Using the table when you buy

Depreciation is usually the biggest single cost of running a newer car, more than fuel, tax and servicing together. Before you buy, place the car honestly on one of the three curves and look at what it costs per year, not just the sticker price.

Our running cost calculator puts depreciation alongside fuel, tax and insurance for the full picture.

And remember the curve only tells you what a car sheds, not whether a specific one is worth buying. A cheap car with a hidden history is no bargain. The free MOT check and the £5.00 report tell you what you are actually getting.

Car depreciation: common questions

How much does a car depreciate each year in the UK?

A brand-new car typically loses 15 to 35 percent of its value in the first year, and around half to 60 percent by the end of year three. After that the fall flattens to roughly 10 to 20 percent of the remaining value each year. Exactly where a car sits in those ranges depends on the model, mileage and condition.

What depreciates fastest?

Big luxury saloons, thirsty engines and models that flood the used market shed value quickest, and premium electric cars have had weak residuals too. Small value-brand cars, desirable 4x4s and sports cars with limited supply hold on best. The same model can sit in different lanes depending on engine and trim.

How much value does a car lose after 5 years?

On an average curve, roughly 55 to 65 percent of what it cost new. In the table on this page a £20,000 car on the average profile is worth about £7,830.10 after five years. A slow depreciator keeps thousands more, a fast one loses thousands more.

When does depreciation stop?

It never quite stops, but it flattens right out. By eight to ten years old a car sheds a much smaller share each year and eventually settles near a floor set by its usefulness rather than its age. That is why a cheap older car with a solid MOT history can be the cheapest motoring there is.

Is this table a valuation?

No. It is a model of how depreciation typically behaves, using the same three profiles as our calculator. A real car's value moves with its mileage, condition, service history and the market. Use it to compare shapes and set expectations, not to price a specific car.

Figures last reviewed on 25 August 2026.