Do Chinese Cars Hold Their Value? UK Depreciation 2026

Last checked September 2026.

For most car owners, depreciation is the biggest cost of all: more than fuel, insurance or servicing. It is also the question that worries people most about Chinese cars. Will a brand that is new to the UK hold its value, or will it collapse like early used EVs did? The latest data gives a more reassuring answer than you might expect, with some important exceptions.

The headline: Chinese cars hold their value as well as mainstream brands

The most thorough study so far, by CDL Vehicle Information Services and reported by Auto Express in September 2026, looked at how much value cars keep after three years and 36,000 miles:

Type of car	Chinese brands	Other brands
All cars	46.2%	46.0%
Electric cars	44.6%	43.4%
Plug-in hybrids	46.7%	44.9%
SUVs	46.6%	47.1%
Superminis	40.9%	45.7%

In other words, Chinese brands are now level with the mainstream overall, and slightly ahead on electric cars and plug-in hybrids. They trail in the supermini class. Interestingly, the Western brands that are Chinese-owned, such as Volvo, Polestar, Lotus and smart, did worse, keeping only 42.6%.

A separate analysis of Autotrader prices for one to three-year-old cars found Chinese EVs holding around 10% more of their value than established rivals, with the BYD Dolphin keeping 63.4% against 42.4% for the Cupra Born. Those cars are young, so treat that figure with caution.

The exceptions: models hit by price cuts

Brand averages hide big swings between individual models. The biggest risk is not the badge but price cuts on new cars, which drag down the value of used ones overnight.

BYD Seal: launched at £45,730 in Design trim in late 2023. By early 2026, two-year-old examples were being advertised for around £27,000, roughly 40% down, and BYD was discounting new Seals to clear stock before a facelift.
MG4: launched from about £26,000 in 2022, with the earliest used examples now starting from about £10,500.
Leapmotor B10: Auto Express found it one of the cheapest cars to lease but among the most expensive to buy outright, largely because of its weaker expected used value.

On the other side, Auto Express found the Omoda 5 has robust residual values and the Jaecoo 7 holds its value better than the MG HS.

What is happening to used EV prices

Used electric car values crashed between 2022 and 2024, falling by more than 60% in total as Tesla cut new prices and supply outpaced demand. That has now stabilised:

In May 2026, three-year-old electric cars rose in value for the first time in eight months, according to Cap HPI.
Autotrader reported used EV prices up 3.8% year on year in August 2026, with three to five-year-old EVs up 9.4% to an average of £20,351.
Used EVs were selling in about 27 days, and used BYD sales hit a record 830 in April 2026, up from just 33 in October 2024.

A growing, confident used market is good news for resale values. The more buyers there are for used Chinese cars, the better they hold their price.

Why the Electric Car Grant matters for resale

Cap HPI has pointed out that the Electric Car Grant excludes all Chinese-built cars. When rivals get up to £3,750 knocked off their new price, Chinese brands tend to cut their own prices to compete, and new-car discounts feed straight through to lower used values.

How to protect your car’s value

Buy after a price cut, not before. If you buy at the new, lower price, you do not suffer the drop.
Consider nearly new. Letting the first owner take the steepest part of the depreciation curve can save thousands.
Keep a full dealer service history. It protects the warranty, which transfers to the next owner and helps resale.
Choose popular colours and mid-range trims, which are easiest to sell on.
Think about leasing or salary sacrifice if you want to avoid depreciation risk altogether. See our salary sacrifice guide.

Frequently asked questions

Do Chinese cars depreciate faster?

On average, no. A September 2026 study by CDL found Chinese brands keep 46.2% of their value after three years and 36,000 miles, against 46.0% for other brands. Individual models hit by price cuts, such as the BYD Seal, have lost value faster.

Does the MG4 hold its value?

The earliest MG4s have lost around 60% of their launch price, partly because of heavy price cuts on new cars and the wider used-EV slump of 2022 to 2024. Used EV values have been rising again in 2026.

Which Chinese cars hold their value best?

Early evidence points to the Omoda 5 and Jaecoo 7 holding value well, and to Chinese electric cars and plug-in hybrids doing slightly better than rivals overall.

Is it better to buy a used Chinese car?

It can be. Nearly new Chinese cars can be much cheaper than new, and the warranties on most brands transfer to the next owner, so you keep years of cover.

Do Chinese Cars Hold Their Value? UK Depreciation in 2026