Depreciation Busters

Forget fuel and servicing, depreciation will be your biggest motoring expense unless you choose your car wisely

Auto Express Car Reviews

May 2002

By carefully selecting the right colours and ensuring it has desirable options, you'll have no trouble shifting it in three years. Here we pick out six nearly new buys that will hold their money as well as a bank vault!
Mercedes S-Class
Large executive cars are often a recipe for a depreciation disaster, but not with a three-pointed star on the bonnet. The Mercedes S-Class still boasts incredible residual values, shunning the numbers of personal imports and company car tax rises which threaten most class rivals.
At GBP56,725 for a new S500 or GBP52,000 for a one-year-old, the retained value works out at about 90 per cent, while a further two years later a tidy S500 will still command over GBP40,000 on the forecourt. And this strong performance is confirmed by Ashley Williams of Mercedes-Benz Direct in Poole, Dorset. "The S-Class is renowned for resisting depreciation," he told us. "But it's the diesels which are really popular." So much so that a V-reg CDI is still worth GBP34,000, compared to GBP43,325 new.
Real opulence, stunning engineering and the best image this side of a Bentley all add up to keep the S-Class a strong favourite among buyers.
Renault Espace
Whispers in the trade suggest the bottom is falling out of the MPV market, but obviously nobody has told the Renault Espace. The stylish 1997-on models, launched to freshen the people carrier in the face of the Ford Galaxy and family, are among the best value retainers in the market, holding up to 60 per cent of their new price even at three years old - and this is despite the fact that a replacement model is just around the corner.
This is because the Espace is a cut above the average MPV. Luxurious, refined and as versatile as it is desirable, Renault's people mover is the original and still the best. And if you can fork out enough money to buy one in the first place, your motoring won't be particularly expensive . You'll get most of your cash back when you come to sell three years down the line. The pick of the range has to be the 2.2-litre diesel because of its respectable performance and fuel economy . But no Espace is a bad buy.
Lexus IS200
It was the car which rocked BMW. Launched in 1999, the IS200 proved an instant hit. The baby Lexus built on the solid reputation earned by the LS400, and offered 3-Series-rivalling build quality, handling and kudos, plus a tactile six-speed gearbox and class-leading specification levels.
Three years on and the IS200 is still a popular compact executive model, while Toyota-bred reliability makes it a big hitter on the used forecourt. Many ex-company cars are now coming up to the end of their leasing periods and finding their way on to the second-hand scene, but they're being snapped up quickly by eager punters. That means an entry-level IS200 2.0 is still worth GBP13,500 on a '99 T-plate with 36,000 miles on the clock, compared to a new price of GBP18,380, while a GBP15,500 three-year-old Sport retains nearly 75 per cent of its list price providing the colour and mileage are right.
BMW 330d
A car only becomes a benchmark by which others are judged if it's a truly excellent all-rounder,
and the BMW 3-Series qualifies on all counts. But it's the incredible six-cylinder 3.0-litre diesel which most impresses us, retaining a mighty 80 per cent of its value after one year and 20,000 miles.
That's because the 330d offers excellent refinement for an oil-burner, plus traditional 3-Series virtues such as superb handling and top-notch build quality. And company car drivers simply can't get enough of the diesel since the new tax rules came into operation.
Buy a 2000 X-registered model for GBP20,000 and you should still see a return of about GBP13,500 in three years' time, meaning you can enjoy the experience of owning and driving one of the best BMWs available for less than GBP2,000 a year. This makes it one of the best second-hand buys on the market. Simple as that.
Audi A2
The all-aluminium German supermini is still a rare sight on the second-hand market, but the first ex-fleet Audi A2s are starting to filter on to dealers' forecourts and prices look healthy.
The oldest examples have now been around for two years, but with even entry-level non-air-con 1.4-litre petrol versions realising a shade under 11 grand in top condition, that's a drop of less than GBP2,500 in 24 months, or a retained value of 83 per cent.
New company car regulations look set to boost the A2's appeal still further, with the luxury and build quality synonymous with Audi now available in the lowest possible tax bracket.
The A2 might be weird to look at, but under that cockroach-like body lurks a cleverly laid-out cabin and a choice of either the VW Group's 1.4-litre four-pot or a noisy but astoundingly economical three-cylinder diesel. Performance is more than acceptable in both, thanks to the A2's light weight, while ride comfort and handling have the feel of a much bigger car.
Land Rover Defender
A stalwart of the UK motor industry and a classic design to boot, the Defender is also a safe investment. Despite its agricultural origins, bouncy castle ride and embarrassingly outdated cabin, it holds its value as well as it deals with obstacles thrown in its path.
That's because the traditional Landie is still regarded by many as the best 4x4xfar, and not without reason. Chunky build, incredible ability and excellent five-cylinder turbodiesels bolster its appeal, while the utilitarian looks are as trendy in the city as they are useful in the sticks. Factor in limited availability and low build numbers and the Defender is even more attractive. So a three-year-old should fetch nearly 60 per cent of its new cost, and won't lose much thereafter. You only have to look at the number of F, G and H-reg examples still commanding more than GBP5,000 to realise how solid values are. Compare them to the three-figure price of a similar era Ford Granada, which cost the same new, and we rest our case.