The resale value of a car is the estimated amount a vehicle is worth when it is sold after being used.
In the UK, resale value plays a central role in insurance settlements, part-exchange deals, finance and leasing agreements, and private sales.
It reflects how much value a car retains over time, based on age, mileage, condition and market demand.
Understanding resale value can help you make smarter buying decisions, forecast future costs and avoid losing money when selling or trading in your vehicle.
What is the resale value used for?
Resale value has several practical applications in the UK:
- Insurance claims and write-offs: Insurers use resale value or pre-loss value to determine payout amounts when a car is damaged or stolen.
- Part-exchange and private sales: Dealers and private buyers rely on resale valuations when agreeing a sale price.
- Finance and leasing agreements: Monthly payments are often based on the expected future value (residual value) of the car.
- Tax and company car calculations: Resale value affects benefit-in-kind tax calculations and fleet depreciation schedules.
Accurate valuation ensures fair outcomes for buyers, sellers and insurers alike.
How is it calculated?
Unlike some EU countries, there is no single official government table in the UK for resale values.
Instead, resale value is calculated using industry valuation guides and live market data.
The most widely used sources include:
- CAP HPI (part of Cap Automotive): A comprehensive dataset of UK vehicle values used by insurers and dealerships.
- Glass’s Guide: Long-established valuation benchmarks for used cars.
- Online market platforms and auction results: Sites such as Auto Trader and Motorway provide live pricing trends.
Valuations take into account:
- Age and mileage: Younger cars and lower mileage typically retain more value.
- Make and model: Some brands are in higher demand, retaining more of their original price.
- Condition and service history: A well-maintained car with a full history commands a better price.
- Market trends: Demand for certain types (e.g. SUVs or hybrids) influences values.
Example: Real depreciation figures from the UK
Data from recent UK market studies shows that average cars can lose over half of their value in just three years, around 54-55% depreciation from the original price.
For example: a Peugeot 2008 might fall from roughly £17,000 to about £11,700 in three years (a loss of around £5,500).
Alternatively, popular models such as a Range Rover Evoque or BMW 3 Series typically lose around 27-28% of their value over two years.
Other data suggests that some popular hatchbacks (e.g. Audi A1 or Hyundai i10) retain 70-80% of their original value after three years, while electric vehicles and certain mainstream models can fall to 30-40% or less of their original price in the same period.
The Certificate of Conformity for calculating the resale value
The Certificate of Conformity (COC) confirms that the vehicle meets UK and European technical standards and provides verified details such as engine size, emissions and weight.
While not a valuation document itself, the COC ensures that valuation guides correctly identify the car’s specifications.
Accurate technical data from a COC is especially important for:
- Imported vehicles.
- Cars with specialised engine or emissions variants.
- Insurance and taxation purposes.
This helps avoid errors that could undervalue or overvalue a vehicle in the resale market.
Frequently Asked Questions
We answer the most frequently asked questions about calculating the resale value of a vehicle.
What is the resale value of a car after a natural disaster (such as a flood or fire)?
If a car has been affected by a flood, fire or similar event, insurers and buyers typically view it as a high-risk vehicle.
Even after professional repair, its resale value will often be substantially lower, and it may be recorded on industry databases (such as HPI checks) as previously damaged, which depresses market value further.
What is the resale value after a total loss?
When a car is declared a total loss or “written off”, its resale value for the owner is typically based on the pre-loss market value, minus the salvage value if the insurer retains the damaged vehicle.
Total-loss categories affect how insurers value the car, and more severe write-off classifications generally result in lower future resale values.
What is the resale value of a classic car?
Classic cars are valued differently from modern used cars. Instead of standard depreciation models, their resale value depends on:
- Rarity and desirability
- Condition and originality
- Historical significance
- Collector demand
In some cases, classic cars may appreciate in value over time, making them attractive investments rather than depreciating assets.
Resale value vs residual value
Although sometimes used interchangeably, these terms are not the same:
- Resale value is the realistic price a car can fetch when sold today.
- Residual value is a forecasted future value used in leasing and finance deals to calculate monthly payments.
Residual value is a projected figure at the start of a contract, while resale value reflects current market conditions.
Resale value vs market value
Market value represents what a car would sell for between a willing buyer and a willing seller in the current market.
Resale value (as used by insurers and guidebooks) tends to be slightly more conservative, based on structured data and past sales patterns rather than individual negotiation dynamics.
