Cars that go the extra mile

Everyone knows that when you buy a new car it loses value very quickly, almost from the minute it leaves the showroom. But some cars keep their value far better than others, so with a bit of careful thought before you buy your car you can help ensure it won't lose as much value as you had feared.

To demonstrate to motorists which cars will leave drivers better off, Glass's compiled a list of the top 10 cars of 2011 which have best held their original value. They asked which, based on three-year-old vehicles currently on the market, are worth the most today, and this year's "residual value winner" is the Toyota Land Cruiser.

With a hard-won reputation for ruggedness, longevity and being a true workhorse, it has never been the victim of distress marketing by the manufacturer, ensuring that used examples are kept in limited supply.

The Land Cruiser takes the crown from the 2010 winner, the Volkswagen Tiguan, which still has a very respectable showing this year sitting just outside the top 10 at number 11. Second place goes to the good-looking Ford Kuga. As the best-selling 4x4 in the new market, there is a correspondingly large number supplying the used market. And although high supply is often the death knell for residual values, what Glass's calls a "healthy retail demand" more than outweighs this factor.

Six of the seven top places are occupied by off-road and "lifestyle" 4x4s. Thanks to severe wintry weather in the past two years, when millions of motorists were left wishing they had a 4x4, they've seen a surge in popularity.

They are also now in the peak selling months of the year, which means that values will continue to rise month-on-month, and at least until February. According to the report it's "no coincidence" that seven of the top 10 entries are powered by diesel.

"This is no surprise considering the popularity of 4x4s. The larger the vehicle, the more important the fuel savings offered by diesel are," says Glass's.

Many of the vehicles in the top 10 table also benefit from being relatively new in their product lifecycle. The Kuga, Audi Q5, Volvo XC 60, Fiat 500, VW Scirocco, Alfa Romeo MiTo and VW Golf were all introduced in 2008.

Meanwhile, although the nation is in the grip of austerity measures and the economy remains fragile, customers have not gravitated to affordable budget- priced cars in the way many anticipated, says the report. Instead, the strongest residual values are reserved for 4x4s - and cars with a strong image - although decisions to buy them are still very much based on fuel efficiency.