How car depreciation works (with figures by make)
Year-by-year depreciation explained, how premium makes compare, and how to reduce what you lose.
Written by the SellMyPremiumCar valuation team · Reviewed against live UK market data · Updated October 2026
Car depreciation is the loss in value over time. A typical premium car loses about 15–25% in year one and 40–50% over three years, and then the rate slows. Brands with strong demand, such as Porsche, Land Rover (Defender) and Mercedes-AMG G-Class, depreciate more slowly, while large luxury saloons and some EVs depreciate faster.
- 15–25%
- Typical first-year loss
- 40–50%
- Typical 3-year loss for a premium car
- Slows
- After years 3–4
- Spec
- Can halve the depreciation rate
Year-by-year pattern
The steepest fall comes in year one, followed by smaller annual drops. Further drops follow at the three-year MOT and at the end of the warranty.
How makes compare
Porsche 911 and Macan, Defender and G-Class are slow to depreciate. Large luxury saloons and early EVs are faster.
Reducing depreciation
Choose desirable spec and colour, keep full history and keep mileage reasonable. Sell before major milestones.
Step by step
- 1
Estimate your curve
Use the depreciation calculator.
- 2
Spot milestones
Note your MOT, warranty and mileage thresholds.
- 3
Sell at the right time
Sell before the steepest drops.
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Sources & methodology
Figures are indicative and based on UK market data and official guidance, reviewed by our valuation team. Prices vary with specification, condition and market conditions.