City cars, being the smallest of all cars, carry the biggest of small car premiums. What I mean by small car premium is that, on the used car market, small cars lose far less than any other. So that after a few years, a car that is much more new (because it’s bigger) will be about the same price or even less than the small car.
According to the Used Car Expert depreciation index, one of the lightest nearly new city car depreciators is the trendy Fiat 500. A two year old 1.4 version is now worth around £9,300 in main dealers. Or, you could buy a 1 year old example of the much bigger Fiat Bravo for about £8,800. Such is the difference in depreciation.
But fear not, there are still some small cars that lose a lot in depreciation and make for a bargain buy. Here are three:
Daewoo Matiz
A tiny city car for a tiny price. Prices are on the floor now the brand is defunct. But it is a simple, reliable little car that is still being sold as a Chevrolet, for more money.
Most economical: 0.8
Best used buy: 1.0
UsedCarExpert.com fault checks: 14
Used Car Expert magazine price: A 1.0 SE from 2005 is around £2,500, which is half the price of a new Chevrolet. You can sell it for similar money 3 years later. But hang on any longer it loses 27%.
Smart ForFour
Grown up Smart which is pricey when new. As a used buy though much better value cheap to run and decent equipment. Will get cheaper in coming years.
Most economical: 1.5 Cdi
Best used buy: 1.5 Passion
UsedCarExpert.com fault checks: 10
Used Car Expert magazine price: A 2006 1.5 Passion won’t lose much over the next year as it has already lost 27% and dropped to under £7,000 in main dealers.
Volkswagen Lupo
Well equipped solid and safe. Prestige badge and expensive new price keeps values high. A high quality small car that will be easy to resell.
Most economical: 1.75
Best used buy: 1.4 S
UsedCarExpert.com fault checks: 8
Used Car Expert magazine price: A year 2000 1.4 S has lost over 20% each year for the previous 2 years, dropping the price to £2,400 and making it a bargain.