The diesel-powered MINI 1.4TD is the UK’s slowest-depreciating used car, according to new analysis of the residual values of three-year-old vehicles. The supermini currently has an average trade-in value of 63.2 per cent; better than that of any other used car currently on sale.

It is the second year in succession that the MINI has topped the annual residual value league table.  Despite retaining its crown, the car’s trade value has slipped from a peak last year of 71 per cent, equivalent to an additional £600 drop in value.

“The factors that help make the MINI as close to recession-proof as possible in the current used car market are its strong image, reasonable running costs and its high levels of perceived quality,” adds Rushmore.  “It also benefits from being seen as a good compromise for those who need to downsize from a larger, more expensive premium-brand offering.”

New entries in the 2008 ‘Residual Value Top 10’ are small, fuel-efficient and available to buy at low cost - models in tune with consumer sentiment as the UK economy slips into recession.  Three-year-old examples of the Citroen C1, Toyota Aygo, Peugeot 107, and Smart are all affordable new entries – retailing between £4,000 and £5,000, and qualifying for lower levels of Vehicle Excise Duty.

The following table shows the top 10 three-year-old used cars that retain the greatest proportion of their original list price, expressed as a trade value.

The survey also identified those used cars that have the lowest retained value.  Worst performing is the Alfa Romeo 166 which, after three years and 37,000 miles, has a trade-in value of just 12 per cent.

“Obsolescence is the notable feature shared by the majority of the models in the ‘Bottom 10’,” explains Rushmore.  “This situation is underlined by the presence of three cars bearing a Rover badge.  The Vectra is in the process of being replaced, the 9-5 will reappear in a new guise next year, and the remainder have been out of production for some time.  Ageing product lifecycles are the death-knell for the values of most used cars.

“The most positive thing to say about the models in the ‘Bottom 10’ is that they represent unrivalled value for money.  A three-year-old Rover 75 1.8T Contemporary SE with 37,000 miles had a list price of £22,700, and yet its trade value today is only £3,300.  This means that it has depreciated by £19,400.  Buyers will be virtually guaranteed trouble-free motoring for the next three years, and will not suffer a further significant loss in value.  In three years’ time a dealer is still very likely to offer a minimum of £1,000 in part exchange.”

The following table shows the bottom 10 three-year-old used cars that retain the smallest proportion of their original list price, expressed as a trade value.