Small cars depreciating slower

Demand for small cars has pushed a selection of economical models to the top of a poll of 2008's slowest depreciating cars.

According to research from parkers.co.uk, the Toyota Aygo was Britain's slowest depreciating car last year, losing just £4 per day and a total of £1515 over 12 months.

The report, which compared last January's new prices with values now, found the economic downturn has forced many drivers to downsize, increasing the demand for small cars.

Another small car that appeared in the top 10 is the new Fiat 500. The retro-inspired look, together with low running costs has made it a suitable car gloomy economic times. It even came ahead of the Mini, the residual value of which has remained strong since 2001.

On the other end of the scale luxury cars fared the worse. A fall in demand and high running costs mean luxury car owners should expect them to lose a large amount of their cost in the first year of ownership.

Kieren Puffett, editor of parkers.co.uk said: "The popularity of small cars has risen as a result demand has never been stronger for the very best small cars and values remain strong as a result."

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