Compare up to four cars, vans, EVs or pick-up trucks side by side for depreciation, residual value, annual running costs and total cost of ownership. Use it before buying, leasing, replacing a fleet vehicle or choosing a company car.
Start with the calculator, then use the guide below to understand which rates, categories and tax notes matter for your exact UK buying decision.
Use this tab when two cars have different fuel, charging, insurance, servicing or finance costs. It compares real annual ownership cost, not depreciation alone.
Use this tab for a quick fleet budget. It helps estimate annual depreciation, residual exposure and replacement-cycle cost for a batch of similar vehicles.
Vehicle depreciation is the part of ownership that many UK buyers underestimate. Fuel, insurance and servicing feel visible because they arrive as bills, but depreciation often only becomes obvious when you sell, trade in, return a PCP car or value a company vehicle. A car can look cheaper on the forecourt yet cost more over three years if it drops faster than a slightly more expensive alternative.
This is why a vehicle depreciation comparison tool is useful. It forces every option into the same ownership period and converts the loss of value into pounds, not just percentages. A £55,000 premium SUV losing 12% per year might retain more money than a £35,000 mass-market EV losing 22% per year. Equally, an EV with higher depreciation may still win on total cost if charging, servicing and company car tax are much lower than a comparable petrol or diesel model.
For private buyers, the goal is usually to reduce the total cost of car ownership over three to five years. For businesses, the question is broader: depreciation affects the accounts, but tax relief is calculated through HMRC capital allowances or lease deductions. For fleet managers, a small change in residual percentage across ten or twenty vehicles can move the annual budget by thousands of pounds. This page helps you test those scenarios in a simple, transparent way.
Use these as planning defaults. They are deliberately conservative because individual cars within the same category can perform very differently.
Porsche 911, limited-run performance models and enthusiast cars often depreciate slowly because supply is tight and used demand is resilient. They still need careful checking: high running costs, finance cost and insurance can offset excellent residual values.
Land Cruiser, Defender, Hilux and Ranger-type vehicles can perform well in the used market. For business users, double-cab pickup tax treatment changed from April 2025, so confirm whether your exact vehicle is treated as a van or car for benefit and capital allowance purposes.
Golf, Focus, Astra, Qashqai and similar cars sit near the practical UK middle. They are easy to sell, but large supply and finance-return cycles mean used prices can soften quickly when many similar cars reach the market.
BMW 3 Series, Audi A4, Mercedes C-Class and similar cars often have strong demand but high new prices. Business use, high mileage and expensive options can widen the difference between book value and real trade value.
Premium EV residuals have become more stable than the sharp falls seen in earlier cycles, but budget EVs and short-range older models can still lose value quickly. EV comparisons must include VED, charging cost, warranty and battery health.
Cars with limited used-buyer demand, older diesel technology, expensive repairs or poor specification can depreciate faster. A low purchase price is not always a bargain if resale demand is weak after three years.
A fair comparison needs the same assumptions for every vehicle. Start with the same ownership period — usually three years for a PCP-style private buyer, four years for many fleets, or five years for a cash buyer who keeps cars longer. Then enter realistic running costs for each vehicle, not the best-case figures from brochures. Insurance, tyres and servicing often rise with vehicle size and performance, while EV charging cost depends heavily on whether you can charge at home or rely on public rapid chargers.
Percentage rates can be misleading. A £25,000 car losing 25% in year one loses £6,250. A £45,000 car losing 15% loses £6,750. The expensive car has a better residual percentage but still loses slightly more cash. The winner is the one that fits your budget, your cash-flow and your resale risk tolerance.
Do not compare the private-sale value of one car with the trade-in value of another. Private sale, dealer retail, part-exchange and finance-company guaranteed future value are different numbers. For planning, use the likely disposal route. A private seller may achieve more but has more hassle. A fleet operator may only care about trade or auction values.
Depreciation is usually the biggest cost, but not always the only deciding factor. A slow-depreciating 4x4 may have higher insurance, fuel and tyre bills than a family hatchback. An EV may depreciate faster than a petrol alternative yet still win for a company car driver because benefit-in-kind and charging costs are much lower. The Total Cost of Ownership tab is designed for these mixed scenarios.
Business users should not treat this tool as a tax computation. It gives a cost comparison. HMRC tax relief depends on whether the vehicle is a car, van, qualifying commercial vehicle, electric car, leased vehicle or pool asset. From April 2026 the main writing down allowance is lower than before, and from April 2025 many double-cab pickup decisions need extra care because tax classification is no longer as simple as the old payload assumption.
Businesses should separate internal cost planning from tax relief. The numbers often look similar, but they are not the same calculation.
For accounts, a vehicle is usually depreciated over its expected useful life using a straight-line or reducing-balance method. This affects profit and net book value, but it is normally added back for tax purposes.
For tax, HMRC uses capital allowances. Business cars may qualify for 100% first-year allowance if new and zero-emission before the relevant deadline, 14% main rate WDA from April 2026 for qualifying lower-emission cars, or 6% special rate for higher-emission cars.
Many vans and light commercial vehicles can qualify for Annual Investment Allowance if used in a business, but classification matters. Double-cab pickups need careful review for tax years beginning after April 2025, especially where private use or company car benefit is involved.
Keep the inputs consistent and the results will be much more useful.
Use Compare 2 for a head-to-head, Compare 4 for a shortlist, TCO for real annual cost, or Fleet Budget for business planning.
Use on-the-road price for a new car, current market value for a used car, or net replacement cost for a fleet vehicle.
Choose the category that matches the exact model and buyer demand. Adjust up for high mileage or weak specification.
Review both total depreciation and TCO. The cheapest car to buy is not always the cheapest car to own.
Private buyers should focus on cash lost over the time they expect to own the car. If you plan to change after three years, first-owner depreciation matters a lot. If you buy nearly-new and keep the car for five years, the early drop has already happened and reliability, warranty and running costs matter more.
Company car drivers need a wider view. Benefit-in-kind is based on the car's list price, CO₂ emissions and tax-year percentage. Zero-emission cars remain attractive because their company car percentages are much lower than petrol and diesel equivalents, but rates are rising year by year. A high-list-price EV can still be efficient for tax, yet its real cost should include VED, insurance, finance, charging and depreciation.
Business owners and fleet managers should compare total budget exposure. A fleet of twelve cars each losing £4,000 per year creates a £48,000 annual depreciation cost before fuel, insurance or servicing. A small improvement in residual value can be worth more than a modest discount at purchase. This is especially important when negotiating fleet terms, lease rentals or replacement cycles.
EV switchers should test more than one charging assumption. A home-charged EV can be dramatically cheaper to run than petrol or diesel. A public-rapid-charged EV can be far closer to petrol costs, especially for high-mileage drivers. The TCO tab lets you change annual energy cost so the result reflects your real use pattern.
Use these links to move from a planning comparison to a full tax, valuation or ownership decision.
The most common mistake is comparing list prices instead of cash lost. A discount on a new car can be useful, but it does not guarantee good value if the model is over-supplied, about to be replaced, or unpopular in the used market. A £3,000 dealer contribution can disappear quickly if the car loses £7,000 more than a rival during the first three years.
Another mistake is ignoring specification. Two cars with the same badge can depreciate differently because one has the right engine, battery size, colour, warranty and trim level while the other has an awkward specification. Used buyers usually pay more for desirable options, but they do not always repay the full cost of expensive extras. A panoramic roof, heated seats or larger battery may help resale; very personal colours or niche packages may not.
High mileage is also easy to underestimate. If you drive 18,000 miles per year, your car may reach a mileage band that trade buyers price more harshly. The comparison rate should be increased for very high annual mileage, hard commercial use, weak service history or vehicles used in clean-air-zone cities where diesel demand is falling. Conversely, a low-mileage, fully serviced vehicle with remaining manufacturer warranty may deserve a lower rate.
Finally, do not treat finance payments as the same thing as depreciation. A low monthly payment can hide a large balloon, high APR or optimistic guaranteed future value. The best comparison combines depreciation, finance cost, running costs and likely resale value. This is why the TCO tab is often more useful than a simple monthly-payment comparison.
Common questions for UK buyers, company car users and fleet planners.