The average value of a car on the UK road is a complex topic that is influenced by various factors such as the make and model of the car, age, mileage, condition, and many others. According to data from the Society of Motor Manufacturers and Traders (SMMT), the average value of a new car sold in the UK in 2021 was around £33,000, while the average used car value was around £15,000. In this article, we will explore the factors that influence the average value of a car on the UK road in more detail.

Make and Model

One of the most significant factors that influence the average value of a car on the UK road is the make and model of the car. Luxury car brands such as BMW, Mercedes-Benz, and Audi tend to have higher resale values than more affordable brands such as Ford, Vauxhall, or Citroen. For instance, a five-year-old Mercedes-Benz C-Class may retain up to 51% of its original value, while a Ford Focus may only retain around 35% of its original value, according to data from CAP HPI.

Moreover, high-performance models, such as the Porsche 911, or rare models, such as limited edition vehicles or classic cars, can command much higher prices than their standard counterparts. For example, a 1965 Ford Mustang GT350 was sold at auction in the UK for £250,000 in 2021, despite its age and condition, due to its rarity and collector appeal.

Age and Mileage

The age and mileage of a car can also have a significant impact on its average value. New cars generally have higher values than used cars, as they come with the latest technology, safety features, and warranties. However, the rate of depreciation varies depending on the make and model of the car, with some cars retaining their value better than others.

According to research by AutoTrader, the average depreciation rate of a new car in the UK is around 20% in the first year, and up to 60% after three years. For example, a new Ford Fiesta worth £15,000 may be worth around £9,000 after three years, while a new Mercedes-Benz C-Class worth £35,000 may be worth around £14,000 after the same period. The rate of depreciation can also be influenced by factors such as the age of the car, its condition, mileage, and the level of demand for the particular make and model.

Condition

The condition of a car can also have a significant impact on its average value. A well-maintained car that has been regularly serviced and is in good condition may command a higher price than a similar model that has been neglected and poorly maintained. According to research by AutoTrader, buyers are willing to pay up to 25% more for a car in excellent condition, compared to the same model in average or poor condition.

Furthermore, the condition of the car can be affected by a range of factors, including accidents, rust, wear and tear, and damage to the interior or exterior. Buyers are likely to scrutinize the condition of a used car carefully, and any defects may affect the resale value. For instance, a car that has been involved in an accident or has a history of mechanical problems may be worth significantly less than a similar model with a clean history.