Buyers of new hatchbacks beware: practicality comes at a price

EurotaxGlass’s has uncovered a ‘depreciation trap’ affecting some of Britain’s best-selling cars. The publisher of Glass’s Guide has revealed that five-door variants of some family hatchback models, such as the Vauxhall Astra, Citroën C4 and Renault Mégane, suffer from significantly higher rates of depreciation than their three-door equivalents.

In the case of a Vauxhall Astra 1.6 Design, a five-door model bought last March (’06-plate) would have had an identical list price to the three-door version, yet just one year and 12,000 miles later the trade value of the five-door model is £1,250 less than the three-door.

The trend is all the more remarkable given that some of the affected five-door cars have a list price up to £500 greater than their less practical three-door siblings. EurotaxGlass’s reports that a five-door Citroën C4 1.6 VTR Plus bought a year ago would have cost £400 more than the three-door model, but would now be worth £175 less.

Similarly, a five-door Renault Mégane 1.6 VVT Dynamique bought in March 2006 would have cost £500 more than the three-door model with the same engine and specification, but after one year and 12,000 miles the five-door has a trade value just £25 greater than the three-door car.

“These three cars have very clear visual differences between the three- and five-door variants,” comments Jeff Paterson, Senior Car Editor at EurotaxGlass’s. “The sportier appearance of the three-door models helps to give them broader appeal compared to their five-door siblings, in particular attracting style-conscious younger buyers who are less concerned about rear-seat accessibility. In the used car market the higher level of demand for three-door hatchbacks translates into stronger residual values.”

Paterson continues, “With other cars in the C-segment, such as the Peugeot 307 and Volkswagen Golf, the visual differences between the three- and five-door models are more subtle and consequently the differential in residual values is less marked.”

Another factor influencing price differences between some three- and five- door models is supply. Paterson concludes, “Five-door models are preferred by rental companies, responding to demand from their customers. This means that, when these cars are offered to the motor trade after six months, there is a significant imbalance of supply, depressing prices for five-door models.”