Used cars that should cost you nothing to own

Choose your new performance car wisely, be careful not to rack up too many miles and, three years later, it might be worth 60% of what you paid for it.

That’s pretty much a best-case scenario. That means the Volkswagen Golf R that you’ve put £35,000 into will be worth £21,000 after 36 months, so it will cost you close to £5000 in depreciation alone every single year.

No matter how you buy your new car – with cash, on finance or on a lease contract – you as the first owner will bear that cost. You can reduce your depreciation liability by buying a second-hand car, perhaps one that is already three years old and has slipped down the steepest part of the depreciation curve with somebody else’s name on the V5 document.

But the car will still lose value. As we’ll show you, it is possible to buy a first-rate driver’s car that will hold onto its value:

Slash your depreciation bill

There are certain performance cars on the second-hand market that are so well-regarded – and that are in sufficient demand – that their values are set in stone. Pick the right one and it’ll probably owe you nothing two or three years down the road. You could get back every penny you paid for it.

Can it possibly be that straightforward? No, of course not. On the subject of future values, there can be estimates and calculated guesses, but never any guarantees. We will also take a closer look at the realities of choosing an older car over a brand-new one. What you need to know is this: by slashing your depreciation bill to nothing, your motoring expenses could be obliterated. And it’s doable even on the most meagre budget.

Here are our recommendations, from cheapest to most expensive:

UNDER £5000

Mazda MX-5 (NA)

Not too long ago, an original MX-5 could have been yours for little more than £1000. That will only buy the tattiest MX-5 out there these days, which is as clear a sign as any that values are on the up.

1989 marked the 30th anniversary of the little sports car’s arrival, which means you’ll invariably be looking at examples with more than a handful of miles behind them and plenty of stories to tell.

Nonetheless, there are plenty of cars out there that have been cherished, so that doesn’t mean you’ll have to satisfy yourself with a rust-ridden and careworn old shed.

Mazda MX-5 - interior

The perky four-cylinder engines are said to be near enough bulletproof with regular oil changes and proper maintenance, although you should inspect the car closely for signs of corrosion, knackered suspension components and a flappy hood.

The original MX-5 was the second-ever winner of Autocar’s Britain’s Best Driver’s Car competition, beating all-comers in 1990, and a good example will be a joy to drive to this day. Now well and truly into modern classic territory, the MX-5 is a sure bet for depreciation-free motoring.

We found: 1991 MX-5, 54,000 miles, £4995

Renaultsport Clio 197

If there is such a thing as an unloved Renaultsport Clio, this is probably it. The 197 was never reviewed as enthusiastically as the quick Clios that came before it, while the model that came immediately after, the Clio 200, was better to drive.

Renaultsport Clio 197 - interior

But the 197 is surely the best-looking of the lot – in fact, it must be one of the best-looking small hot hatches full stop – and it’s fantastic to drive by any measure. Costing from as little as £2800, the Clio 197 surely can’t drop much further, if at all.

We found: 2008 Clio 197, 86,000 miles, £3995

Alfa Romeo GTV 2.0 Twin Spark

So many of these very pretty little coupés have been neglected, their paintwork allowed to fade and rust left to wreak its havoc.

But a fair number have been loved and adored, which means you’ll readily find an example for not much more than £2500 with pristine bodywork and a clean bill of health. 

Alfa Romeo GTV 2.0 Twin Spark - interior

There are V6 models out there for less than £5000, but the truth is the Twin Spark, with its much lighter four-cylinder engine, was always better to drive. Values may even climb in coming years.

We found: 2001 GTV TS, 67,000 miles, £1750

Honda Civic Type R (EP3)

Sure, it’s shaped like a breadvan and, yes, the enormous headlights do give it a startled expression, but the howling four-cylinder motor under the bonnet more than makes up for the Civic Type R’s somewhat gawky looks.

For less than £3000, you’ll be buying one of the finest hot hatch drivetrains of recent times, with the rest of the car thrown in for free.

Honda Civic Type R (EP3)

These Type Rs tend to live tough lives and often they’re not well looked after, which means the cleanest cars will hold onto their value.

We found: 2006 Civic Type R, 99,000 miles, £4375

Those are our cheapest recommendations. But what if you've got a bit more cash to splash?

£5000-£15,000

BMW M3 (E46)

The third-generation M3 has been one of the most tempting used performance cars for so long that values have begun to climb.

With hindsight, it seems absurd that £6000 was ever enough to buy a serviceable M3 with reasonable mileage because, with muscular but understated styling, one of the finest straight-six engines of all time and peak M-car dynamics, the E46 M3 always seemed to be worth so much more.

You’ll need to spend at least £9000 now, but in a couple of years that could rise to £11,000 or so.

BMW M3 (E46) - interior

The car isn’t without its issues. The most enthusiastic drivers will be looking for coupés with manual transmissions, but so many of the examples you’ll find listed in the classifieds will be convertibles and plenty will have the jerky SMG semi-automatic gearbox (pictured).

What you’ll really need to look out for is a cracked boot floor, however, because according to some specialists it’s a case of when, not if.

BMW made a lot of ‘goodwill’ repairs on cars younger than 10 years old, but even so you’ll only ever have real peace of mind if a recognised M3 specialist has inspected the car closely and given it a clean bill of health.

We found: 2003 M3, 79,000 miles, £11,995

Honda S2000

What’s intriguing now about Honda’s no-nonsense roadster is that it’s actually become more valuable, like-for-like, than the Porsche Boxster that was always said to be the superior sports car.

Scarcity is one factor, for the S2000 is nowhere near as common as the Porsche, and while its handling balance isn’t as forgiving as the mid-engined car’s, it does have the more thrilling (and durable) drivetrain.

Honda S2000 - interior

The cheapest cars trade hands for £6000 or so, but £14,000 will buy a low-mileage example that will hold its value.

We found: 2004 S2000, 41,000miles, £13,750

Mitsubishi Lancer Evo VI

As the used car market begins to realise the Evo VI is not a boy racer’s car after all but actually a nailed-on future classic, its value is beginning to creep up.

These cars are now 20 years old and you’ll struggle to find one with really low mileage for a sensible price, but there a few with 90,000 miles or so for less than £15,000.

Mitsubishi Lancer Evo VI - interior

Its pathetic range makes it unsuited to really long journeys, but across a moorland road there’s not much out there that will be more exciting.

We found: 1997 Evo VI, 90,000 miles, £9995

Renaultsport Clio 182 Trophy

The 182 Trophy’s future legend status is assured on two fronts, for not only was it exceedingly rare with only 550 ever built (all but 50 for the UK market), it also happens to be one of the finest small hot hatches ever produced. Why so special?

Renaultsport Clio 182 Trophy - interior

The remote reservoir Sachs dampers that gave it freakish body control with uncanny pliancy over bumps are at the heart of it.

Those dampers cost around £1000 each, which is why Trophy owners have them refurbished when the time comes rather than replacing them entirely.

We found: 2005 182 Trophy, 100,000miles, £9995

Still want to spend more? Let's step up another price bracket:

£15,000-£30,000

Lexus IS F

It was never as highly regarded in its day as rivals from BMW and Mercedes, but the Lexus IS F is now more expensive than both the V8-engined M3 and the C63. With fewer than 200 ever brought into the UK, the IS F is exceptionally rare, which is exactly what will keep values strong in years to come.

Contemporary reviews said it wasn’t as sharp to drive as the M3 and not as characterful as the C63, but those seem like petty criticisms today. The truth is it handles well enough for a four-door saloon car and its normally aspirated V8 is as delightful now as it ever was.

Lexus IS F - interior

Its fidgety ride quality was improved as part of a facelift midway through its life, although those post-2011 IS Fs still command £25,000, while the earliest cars are trading hands for around £14,000. It’s unlikely they’ll slip much further.

With typical Lexus reliability and build quality, you can expect to fork out only for routine maintenance and servicing; unlike the comparable M3, the IS F’s engine doesn’t have any commonly occurring issues. Just be aware that a brawny 5.0-litre engine will have an appetite for both fuel and rear tyre rubber.

We found: 2011 IS F, 82,000 miles, £19,500

Porsche 911 Carrera 4S (996)

If the 996 really is the unloved 911, the Carrera 4S is at least the most highly regarded version of it (aside from the very expensive GT3 derivatives).

From the rear it looks like the Turbo model, thanks to its wide arches and full-width reflector strip.

Porsche 911 Carrera 4S (996) - interior

With four-wheel drive and 316bhp, it has much of the all-weather, cross-country pace of the twin turbocharged version, too, but at 70% of the price. Values have risen sharply in recent years and are unlikely to perform a U-turn.

We found: 2003 Carrera 4S, 59,000 miles, £23,995

BMW M3 (E92)

The M3’s high-revving V8 is worth the ticket price alone. The cheapest examples cost less than £15,000, but for just a little more you’ll find low-mileage cars with impeccable histories.

Buy through a recognised specialist and you may even pick up a warranty, which is worth paying a little extra for given that these cars can present the odd four-figure bill in the event of a mechanical failure.

BMW M3 (E92) - interior

You’ll burn through fuel at an astonishing rate and the tyres won’t last long, but you won’t regret it.

We found: 2008 M3, 47,000 miles, £16,000

Bentley Continental GT

Can a 16-year-old Bentley ever make financial sense? There’s no doubt that for under £20,000 you’ll be getting a staggering amount of car, one that combines speed and luxury unlike anything else at the same price point.

But that big W12 engine with its two turbochargers will cost a small fortune just to keep you in fuel and there will be no such thing as a small maintenance bill. If the Conti GT does lose any of its value from here, though, it will do so very slowly indeed.

We found: 2004 Conti GT, 38,000 miles, £19,995

Finally, we come to our most expensive recommendations - let's see what you can get for over 30k:

OVER £30,000

Mercedes C63 AMG 507 Coupé 

The 507 was the run-out special-edition model that bade farewell to the thunderous 6.2-litre V8. The C63 that followed would switch to a more powerful but less characterful 4.0-litre V8 with turbos. Now the most sought-after model, the 507 commands something like a £10,000 premium over a standard C63 of a similar vintage and with the same mileage.

Mercedes C63 AMG 507 Coupé - interior

Objectively it probably isn’t worth the extra out lay, but it is the version that will hold its value, making it far and away the better option in the long run.

We found: 2014 507 Coupé, 52,000 miles, £32,990

Aston Martin V8 Vantage

Undoubtedly one of the riskier bets in this company, the gorgeous V8 Vantage won’t shed much of its value over the next couple of years, if any whatsoever, but its scope for ruinous maintenance bills is not to be underestimated.

Still, for a little over £25,000 you could be driving one of the prettiest sports car shapes of recent times – and one that’s punted a long by a tuneful normally aspirated V8.

Aston Martin V8 Vantage - interior

The Vantage can be tricky at low speeds with a heavy clutch and weighty steering, but on the right road it’s fantastic to drive.

We found: 2006 V8 Vantage, 58,500 miles, £26,900

Nissan GT-R (R35)

The earliest R35 GT-Rs have been trading hands for around £30,000 for a little while, which suggests Nissan’s thumping four-seat coupé has now reached a lower plateau.

You will need to budget a reasonable amount for running costs and maintenance, while finding a reputable specialist to look after it will be key.

Nissan GT-R (R35) - interior

In return you will be getting one of the most intoxicating driving experiences of any car at any price, and enough straight-line performance to humiliate new cars costing four times the money.

We found: 2010 GT-R, 56,000 miles, £32,500

Porsche 911 Carrera GTS (997)

The GTS is said by most commentators to be the pick of the 997 range, enomrously expensive GT models aside. It took all that was great about the 997 – compact size, hydraulic steering, normally aspirated engines – and combined it with modern interior tech, strong performance and just-so handling.

Porsche 911 Carrera GTS (997) - interior

The prices these cars still command nine years later are testament to just how good the GTS was and how desirable it remains, and although any shock at the top end of the used car market might have an effect on GTS values, they’ll never drop so catastrophically that your investment will look reckless.

We found: 2011 911 Carrera GTS, 43,000 miles, £52,900

So there you have it, our list of recommended depreciation busters that shouldn't lose any of their value. But here is some further context to buying one of these cars:

Reality check

The upside of buying a car that’s unlikely to depreciate is obvious, but what about the downsides? Inevitably, there are plenty of them. For one thing, if you really want to protect your car’s value, you shouldn’t drive it at all and keep it parked up in a heated garage.

That isn’t what we’re proposing by any means – and with moderate or even average use, the cars listed here will still hold onto their value. If you cover many more miles than the average person, though, it is unfortunately a very different story.

Reality check

Some of the cars in this list are also getting long in the tooth – an original MX-5 might now be over 30 years old – which means they’ll have none of the interior tech that you may have become accustomed to. Still, a dashboard mount for your smartphone and an aftermarket Bluetooth device will between them navigate most of those issues.

The biggest downside? Without a warranty, every car here will cost more to run and maintain than a comparable new car. That’s an inescapable fact. However, since your depreciation bill will be insignificant, or even non-existent, you’ll have to be on the receiving end of a particularly nasty sequence of four-figure invoices before you’re actually worse off.

Private, approved, used or specialist?

Buying an approved used car from an official franchise can be prudent because you’ll be covered by a warranty for at least 12 months, but you will pay a premium. While it is possible to buy an approved used Aston Martin V8 Vantage, for instance, they start at £40,000 rather than the £25,000 suggested elsewhere.

The very cheapest examples of a particular model will be offered for sale privately. These cars won’t have been thoroughly checked over and nor will they be warrantied. If this is how you choose to buy your pre-owned performance car, you’ll need to be certain you know what you’re looking for.

Private, approved, used or specialist?

The happy middle ground between the two? That will be a recognised specialist. For whichever car you’re in the market for, there will be a specialist out there, and an online search on model specific forums will identify one near you fairly quickly. You won’t pay as much like-for-like as you will at an official franchise, but the car will be checked over and, in almost all cases, it will be warrantied as well.

Striking up a cordial relationship with a relevant specialist will be the most cost-effective way of buying the right car, looking after it properly and maintaining its value.

Aftermarket warranties

One way to protect yourself from big bills in the event of a mechanical failure is to buy an aftermarket warranty. In some cases, the manufacturer itself may offer to sell you an extended warranty, but on older models you’ll have to go to an independent warranty provider (and even then they’re unlikely to touch a car that’s more than 10 or 12 years old).

Aftermarket warranties

By and large, aftermarket warranties are not as comprehensive as manufacturer warranties, although you can choose your level of cover. You should make sure you know exactly what is and what isn’t covered – the cost of labour, for example, might be passed on to you.

Nonetheless, should you get very unlucky indeed and have your car’s engine fail through no fault of your own, you’ll be extremely glad you invested in a warranty. It could save you a small fortune.

Aftermarket warranties

The costs vary enormously depending on the car in question. By way of example, Warranty Direct will sell you a two-year engine and drivetrain warranty on a 2009 BMW M3 (that’s covered 70,000 miles and is worth £17,000) for £858.

That covers parts and labour in full, although you’ll have to pay more to cover the brakes, suspension, fuel systems and electronics as well.