'City Cars' Dominate UK Residual Values Top 10

•Seven of 10 leading models are small cars – even more than in 2008

•Affordability and low running costs are essential characteristics of top performers

LONDON - August 22, 2009: The Peugeot 107 is Britain’s best when it comes to fending off depreciation, and it is one of a number of city cars and superminis to feature in the latest residual values ‘top 10’ published by the used-car experts behind Glass’s Guide. The French firm’s baby holds on to 60.9 per cent of its original list price after three years, placing it just ahead of the near-identical Toyota Aygo (60.2 per cent) and the Suzuki Swift (59.5 per cent). The outcome is attributed to these cars’ high fuel efficiency and low vehicle excise duty (or ‘road tax’) costs, as well as the fact that prime examples fall into the £5,000-£6,000 price band – all key considerations for retail buyers.

The 107’s twin brother the Citroen C1 (59.2 per cent) and the BMW MINI (58.9 per cent) complete the top five. Two other small cars feature in the top 10, reflecting the current strong performance of A- and B-segment vehicles. When Glass’s undertook a similar study in 2008, five city cars and superminis made the cut.

The small-but-magnificent seven are joined by three much more diverse models in the top 10. Taking sixth place overall is the Ferrari F430 – which leads the exotic sports sector, though several other such models rank just outside the top 10. Volkswagen’s Eos coupe-convertible (9th) and the Ford S-MAX MPV (10th) complete the list.

Commenting on the results, Adrian Rushmore, Managing Editor at Glass’s, says, “City cars and superminis have all but taken over the top 10 list this year, leaving little room for models from other segments. Whilst high performance and a prestige badge might seem highly desirable characteristics in a car, these results demonstrate that what really makes a difference to consumers – and therefore to residual values – is cost: specifically, purchase cost and running costs.”

Rushmore points to other factors at play in determining the standings. “All models in the top 10 are relatively young, having been launched within the last five years. Consequently, they are viewed as modern, cutting-edge cars by consumers and retailers, adding to their appeal and bolstering their values. And the age-old dynamic of supply and demand is still a key influence on what a car is worth. None of the leading contenders is available in excessive quantities relative to market demand.”

Wise buys for the future?
Small cars are likely to remain ‘top of the pops’ for some time to come, according to Rushmore. “Consumers will face higher motoring costs – especially taxes and fuel – in the years ahead, and the cheap credit and conspicuous consumption of the recent past will be a distant memory, making small cars the winners once again,” he says. “Style and image will still be important, so the MINI will remain popular. It is likely to be joined by newcomers such as the Mazda2, Hyundai i10 and the Ford duo of Fiesta and Ka, and the Toyota Aygo is expected to keep hold of a top 10 slot. Further up the food chain, high-image models such as the Audi A3 and BMW 1-Series convertibles and a clutch of supercars – like Porsche’s 911 – will also place well.”

The top 10 of three-year-old cars (‘06’-plated) that retain the highest value as a percentage of original price, having covered 39,000 miles, is as follows:

1. Peugeot 107, 60.9%
2. Toyota Aygo, 60.2%
3. Suzuki Swift, 59.5%
4. Citroen C1, 59.2%
5. BMW MINI, 58.9%
6. Ferrari F430, 58.0%
7. Volkswagen Fox, 57.8%
8. Honda Jazz, 57.0%
9. Volkswagen Eos, 56.3%
10. Ford S-MAX, 56.1%

About Glass’s
Glass's was founded in 1933 by William Glass and the first Glass’s Guide to Car Values – widely referred to as the used car dealer’s ‘bible’ – was published in July of that year. Since that time the company has broadened its valuation expertise to cover commercial vehicles, motorcycles and caravans, supplying data in printed, electronic and online formats.

Today Glass's offers products and solutions that are used at every stage of a vehicle's lifecycle. They include the Glass-Net online valuation platform and the GlassMatix collision repair estimating system, as well as new car technical and specification information and residual value forecasting tools.

In 2000 Glass's merged with Eurotax to form EurotaxGlass’s International AG, Europe's leading supplier of automotive intelligence across 30 countries. The merger created a group with unrivalled resources and knowledge. For more information visit GlassGuide.co.uk – the home of Glass’s market insights. EurotaxGlass's consumer website can be found at www.glass.co.uk.