Make and model
The make and model is the single biggest driver of value. Popular models from reliable brands hold their value better than niche or less-reliable alternatives. Current demand and availability in the used car market also matters — a model with strong demand commands a better price regardless of age.
Age and depreciation
New cars lose a significant portion of their value in the first three years. After that, depreciation slows. Older cars (10+ years) depreciate very slowly as the percentage drop from year to year becomes small. The steepest depreciation hits cars in years one to four.
Mileage
Mileage matters, but not in isolation. Average UK mileage is around 8,000 to 10,000 miles per year. A car with significantly above-average mileage will be worth less than a comparable low-mileage example. However, a high-mileage car with excellent service history and condition can outperform a low-mileage neglected one.
Condition
Condition is one of the most significant factors. Categories:
- Excellent — no damage, clean interior, all electrics working, no advisories, full history
- Good — minor wear, small scuffs, full mechanicals, partial history
- Fair — some cosmetic damage, minor faults, no or partial history
- Poor — significant damage or faults, no history, high repair costs
Service history
Full dealer service history adds meaningful value — particularly on premium or higher-mileage vehicles. Stamps from independent garages are also valued, though slightly less so than dealer records. No service history is the most significant single document-related deduction.
Colour
Colour affects resale. The most popular colours — white, black, grey and silver — typically hold the best residual values because demand is broader. Unusual or divisive colours (bright yellow, vivid green, matte finishes) can either help or hinder depending on the model. For sporty cars, vibrant colours can be a positive.
Specification
Higher trim levels and desirable options add value. Sat nav, heated seats, panoramic roof, premium audio, leather upholstery and parking cameras are all positive. Rare factory options on desirable cars add proportionately more.
Market demand and timing
Used car values fluctuate. Market conditions in 2021 to 2023 pushed used car values to record highs due to new car supply shortages. Values have since normalised. Convertibles sell for more in spring and summer. 4x4s and SUVs see stronger demand in autumn and winter.
Outstanding issues
Warning lights, worn tyres, expired MOT, outstanding finance, accident history markers and missing keys all reduce value. The more issues present, the further below clean retail value the offer will fall.