Calculate how much your SUV could lose in value over time, compare electric, hybrid, petrol, diesel, family and premium SUV depreciation, and estimate HMRC capital allowances for company SUVs under the latest UK rules.
SUVs remain popular with UK buyers, but value retention varies sharply by brand, fuel type, mileage, specification and tax treatment.
SUV depreciation is the loss in value between the price you pay for a sport utility vehicle and the amount it is worth when you sell, part-exchange or dispose of it. For private buyers, that loss is often the single biggest cost of ownership, usually larger than servicing, tyres, insurance or road tax. For businesses, it also affects fleet replacement planning, company car policy, accounting depreciation and the timing of capital allowance tax relief.
The UK SUV market is not one single market. A small petrol crossover, a plug-in hybrid family SUV, a luxury Range Rover, a rugged Defender, a Porsche Macan and a large electric SUV can all behave differently. Some models retain value because supply is limited and buyer demand stays high. Others fall quickly because new-car discounts are heavy, technology changes fast, running costs are high, or buyers worry about battery age, repair costs and future emissions rules.
This page gives you a practical SUV depreciation calculator with four useful views: a real-world value forecast, a straight-line accounting schedule, an HMRC capital allowance projection and a two-SUV comparison. Under the calculator, you will find updated 2026 guidance explaining the main factors that affect UK SUV resale values, current HMRC company SUV rules, and practical ways to reduce your total value loss.
Choose a tab below to forecast market value, prepare accounting depreciation, estimate HMRC capital allowances or compare two SUVs side by side.
Use this tab for the most realistic ownership forecast. It applies a UK SUV depreciation curve by category and adjusts for annual mileage.
Use straight-line depreciation for accounting policy, management accounts and fixed-asset schedules. It is simple and predictable, but it does not always mirror market value loss.
Use this tab for company SUVs and sole-trader business-use claims. It estimates the capital allowance claim and tax saving based on CO₂ emissions.
Compare two SUVs with different categories and prices to see which could cost less in depreciation over five years.
Use these broad benchmarks to sanity-check your calculator result. Exact figures vary by trim, mileage, colour, finance incentives and condition.
Strong-demand models such as Land Rover Defender, Mercedes-Benz G-Class and Porsche Macan often sit above the market average at three years because supply is limited and used-buyer demand remains strong.
Toyota RAV4, Kia Sportage, Hyundai Tucson, VW Tiguan and similar SUVs usually deliver more stable residual values than large saloons or MPVs, especially in popular trims.
Expensive SUVs can lose a large amount in pounds even if the percentage looks reasonable. High list price, options, insurance and repair costs all affect resale appetite.
Residuals are more model-specific. Long range, strong brand demand and sensible new pricing help; heavy discounting and rapid battery improvement can hurt used values.
| SUV Type / Example | Typical 3-Year Retained Value | Why It Holds or Loses Value | Buyer Tip |
|---|---|---|---|
| Land Rover Defender / Mercedes G-Class style SUVs | 60–70%+ | High desirability, limited supply, strong lifestyle appeal and off-road image. | Often expensive to buy, but depreciation can be lower than mainstream rivals in percentage terms. |
| Porsche Macan / Cayenne type premium SUVs | 55–65% | Strong brand, driver appeal and broad used demand. | Choose popular colours and avoid unpopular oversized wheels if ride quality suffers. |
| Toyota / Kia / Hyundai family hybrid SUVs | 45–60% | Reliability reputation, warranty cover and fuel economy help demand. | High-spec but sensible trims often sell easiest used. |
| Budget SUVs with heavy new discounts | 35–50% | Low entry price helps, but discounting and high supply cap resale values. | Nearly-new can be better value than buying brand new. |
| Older luxury EV SUVs | 30–45% | Battery, range, charging speed and new-model competition affect buyer confidence. | Check battery warranty, charging speed and real-world range before purchase. |
SUVs often hold value better than equivalent hatchbacks or saloons, but the loss in pounds can still be substantial.
The first difference is demand. UK buyers continue to favour SUVs because they offer a higher driving position, flexible boot space, family practicality and a lifestyle image. That demand supports used values, especially for popular mid-size family SUVs and premium off-road models. However, popularity can also bring high supply. If thousands of similar SUVs return from three-year PCP, lease and fleet contracts at the same time, values can soften quickly.
The second difference is list price. SUVs often cost more than equivalent hatchbacks, so a 40% depreciation rate can mean a much larger cash loss. A £60,000 SUV retaining 55% after three years has lost £27,000. A £30,000 hatchback retaining only 50% has lost £15,000. For affordability, monthly depreciation matters more than percentage retained, which is why the calculator shows both.
The third difference is tax treatment. For businesses, a company SUV is usually a car, not a van, for HMRC purposes. That means no Annual Investment Allowance and no full expensing. Tax relief depends on CO₂ emissions. The practical result is simple: a zero-emission SUV can receive fast tax relief, while a petrol or diesel SUV over 50g/km often receives relief slowly at 6% per year. The employee's company car Benefit-in-Kind position also depends on CO₂ and list price, so a high-emission SUV can be expensive personally even if the company buys it.
Like most cars, SUVs lose the most value early because the car moves from “new” to “used” status immediately. New-car VAT, delivery charges, dealer margins and manufacturer incentives all create a gap between list price and real trade value. By year two and year three, the curve normally flattens, unless the model receives a major facelift, fuel prices change, tax rules shift or large volumes of identical stock return to the used market.
The calculator uses category and mileage, but these real-world details can move your actual resale value up or down.
Brand desirability is one of the strongest forces in SUV depreciation. A desirable badge with limited supply can hold value even when running costs are high.
Electric SUVs can be excellent company cars, but private resale values are still sensitive to range, battery warranty and charging speed.
Mileage is the biggest factor you control. A well-maintained SUV with full history usually sells faster and at a smaller discount.
For tax, SUVs are usually treated as cars. Accounting depreciation is added back in the tax computation and replaced with HMRC capital allowances.
New zero-emission cars can qualify for 100% first-year allowance, giving immediate tax relief on the qualifying cost where conditions are met.
Main pool writing-down allowance from April 2026. This commonly affects some plug-in hybrid SUVs with low official CO₂ emissions.
Most petrol and diesel SUVs fall into the special rate pool and receive only 6% writing-down allowance per year on a reducing-balance basis.
Cars are excluded from AIA and full expensing. Treat SUV-vs-van classification carefully for pickups and commercial vehicles.
Four steps to estimate value loss, accounting depreciation or company SUV tax relief.
Use Market Value Forecast for resale planning, Straight-Line for accounts, HMRC for tax relief and Compare Two SUVs for purchase decisions.
Use the on-the-road price for a private purchase, ex-VAT cost where relevant for business, and a realistic ownership period.
Choose the SUV type closest to your model and use your expected annual mileage. High mileage reduces retained value quickly.
Use the benchmark table and live listings to see whether your result is reasonable for your exact trim, age, colour and condition.
The best SUV deal is not always the cheapest monthly payment. Think about total value loss.
Buying a new SUV gives you full warranty, the exact specification you want and the latest safety and technology features. The trade-off is that you usually absorb the steepest early depreciation. If you sell after only one or two years, the cash loss can be very large. Buying nearly-new can be a better balance because the first owner, lease company or finance provider has already absorbed the initial drop.
A three-year-old SUV can be attractive because many lease and PCP vehicles return at that age, creating choice. The risk is that higher-mileage or poorly specified examples may need tyres, brakes, extended warranty and major servicing soon after purchase. For a premium SUV, a cheap purchase price can be offset by high repair bills. Always compare depreciation with running costs rather than looking at resale value in isolation.
For company cars, the decision is often different. A new zero-emission SUV may be more tax-efficient than a used petrol SUV because of first-year allowance and low Benefit-in-Kind charges. The company gets faster tax relief and the driver pays less personal tax. For a private buyer, however, a used electric SUV with heavy previous depreciation may offer excellent value if battery health, warranty and charging needs suit the driver.
You cannot avoid depreciation completely, but you can reduce the size of the loss.
Use these calculators and references to understand the full SUV ownership cost.
Clear answers to the questions buyers, fleet managers and company directors ask most often.