City cars worth ‘more’
April 8th, 2009 by Richard Aucock
VALUES of small fuel efficient models are for the first time ever outperforming prestige saloons and 4x4s.
Glass’s has ranked the value of each car sector according to the strength of their residuals.
The latest table reveals that city cars have leapt to the top of the rankings, and are now the slowest-depreciating cars in the UK.
It’s the recession that’s driving people into cars such as the Ford Ka, Peugeot 107 and Hyundai i10, says Glass’s. This sees them average 49.5 percent retained after three years.
This is due to booming demand for small, fuel efficient cars, as buyers look to save cash.
‘The improvement in values of city cars is all the more remarkable when you take into account the massive growth in the supply of three-year-old examples – annual sales in 2003 were 95,000, and by 2006, they had grown to 162,000,’ said Glass’s managing editor Adrian Rushmore.
‘Despite the greater numbers available, the sharp rise in demand has promoted values.’ With startling effect – only in 2006, city cars were ranked ninth in the table.
Superminis have also leapt four places.
‘Small and supermini cars are the residual value kings of the used car market, a position they are unlikely to relinquish in the foreseeable future.
‘Even when we finally recover from the current recession, their eco-friendly credentials are likely to keep demand and residual values high.’
Contrast this with luxury saloon cars, which now represent just one percent of sales in the UK.
‘It is difficult to see how they will gain much favour during an economic downturn,’ warns Rushmore.
Surprisingly, though, posh 4x4s have held on to second place in the rankings. Why? The ‘wow’ factor, says Rushmore.
‘Image is all-important in this segment…’
Car Dealer Magazine can reveal the full top 10 rankings here:
1. Small/City 49.5% – up 8 places
2. Premium 4×4 46.5% – down 1 place
3. Supermini 44.5% – up 4 places
4. Premium upper-medium 42.5% – down 1 place
5. Lower-medium 40.5% – up 1 place
6. Premium large 40% – down 2 places
7. 4×4 non-premium 36.5% – down 5 places
8. Compact MPVs 35.5% – no change
9. Luxury saloons 35% – down 4 places
10. Upper-medium 34.5% – no change
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Tags: 4x4s, city cars, glass's, green, residual, rv, supermini
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