November 12th, 2024 | Andrew Hagger | News

With just six weeks to go, the festive season will be here before we know it. And with this, usually comes financial pressures of present giving, decorations, food costs and extra social events.

So, Hodge is sharing three saving tips and hacks for people who aren’t feeling prepared for the season ahead. Hodge has revealed the optimal ways to put money aside from upcoming paydays, and how to be better prepared for 2025.

Christie Cook, managing director of retail at Hodge says: “In an ideal situation, we’d all like to be entering autumn with money set aside for Christmas and the costly festive season. But with rising energy and domestic bills and cost of living concerns this year, more of us than ever might be feeling unprepared and are yet to save for December’s higher outgoings. And, given it’s just around the corner, for those paid weekly, there are just 13 paydays left until Christmas, and for those paid monthly, there are only 3 paydays left from September – November.”

According to Hodge’s research, data from 2023 suggests the average spending per head during the Christmas period is £767.54. This figure could also likely rise to well over £1000 for families who have more presents to buy or mouths to feed.

Hodge’s three Christmas saving tips and hacks:

1. Put aside money from every pay day from now
   “If you haven’t already got money aside for Christmas, then to have the average £770 aside for Christmas, you would need to save £257 in September, October and November if you’re paid monthly. Or £59 weekly for the next 13 weeks.. Obviously, that’s an awful lot to suddenly need to start saving and for many, certainly not possible. So, it might be better to start with a list of what needs to be bought for Christmas and then reviewing what you could realistically take out each pay day.”
2. Consider the ‘50 30 20 saving method’ for budgeting
   Waiting until December to do all your festive spending can put pressure on finances for the whole month, and impact your January bank balance too. Christie says if you’re in a position to be able to do so, it would be ideal to front-load these payments: “With a saving method like the ‘50 30 20’, it will make December itself less costly. This leaves you with more money for the longer wait for January payday (especially if you’re paid early in December!), and also to have extra funds for unprecedented costs during this time. Saving methods like these can reduce the last minute pressure and overwhelm that comes with one-off costs like Christmas, car insurance, or a holiday.”

For someone paid monthly and budgeting for a Christmas spend of £800 for example, this would mean taking £400 out of September’s paycheck, £240 in October, and £160 in November.

1. Plan for 2025 now for less noticeable impact by putting aside £77 a month
   Christie suggests setting out an annual saving plan to make Christmas costs feel like less of a burden: “Rainy day funds and saving for unknown eventualities like car problems or property damage is good. But being prepared for planned outgoings should be prioritised. One recurring cost we can all plan for is Christmas and gifting for loved one’s birthdays throughout the year for example.” Based on the average Christmas spend of £770, if you put aside around £80 a month from February – November, it would mean no Christmas saving needed in January 2025, or December next year, and reduces the pressure at the last minute.

November 12th, 2024 | Andrew Hagger | News

New research has found that 9.5 million households in the UK are paying for broadband speeds they don’t need. Just over a third (34%) of internet users overpay for their broadband packages, equal to an estimated £53 million spent on unused speeds each month. This translates to a jaw-dropping £637 million over the course of a year.

The figures come from Go.Compare, which surveyed users on their internet habits and the broadband speeds they pay for. After calculating the speeds households would actually require based on their usage, it revealed just how much they could be overpaying.

The comparison site says that those who overpay spend an average of £5.58 per month more than they need to on their broadband. This means £66.96 is wasted over 12 months – enough to cover a streamer’s standard Netflix subscription for a year.

According to the findings, the majority of Brits pay for some of the fastest broadband speeds. Around a third (34%) have speeds of over 150 megabits per second (Mbps), but it’s estimated that just a fifth (21%) of internet users actually need broadband as fast as this.

Similarly, more than a quarter (27%) pay for speeds between 51 and 100Mbps, but only 12% of internet users need speeds in this range. Meanwhile, only 3% of the country settles for the slowest speeds of 15Mbps or less, yet this would be enough for 13% of users.

Users who only need 15Mbps also tend to overpay the most, as just 4% of these users said they pay for speeds around this level. One in 10 of these users stated that they pay for some of the fastest speeds at over 150Mbps – despite the slowest offerings being enough for their usage. As a result, they overspend by £9 per month, equating to £113 being wasted every year.

Matt Sanders, broadband expert at Go.Compare, says: “Our latest research suggests that a large chunk of the country is spending more than it needs to on broadband, which is a real kick in the teeth when times are so tight.

“Everyone’s broadband needs are different, so it can be difficult to know what speeds you actually need. The key factors to keep in mind are the number of people in your household and what you tend to use your broadband for. Certain activities like online gaming and streaming 4K videos need faster speeds to run smoothly, and these speeds will be diluted if multiple devices are using the internet at once.

“So, if you live alone and only use the internet for general browsing like emails and shopping, you should be able to manage on relatively slow speeds. But, if your household is a family of four with multiple devices on the go, you might need to get faster speeds so that everyone can use the internet at once without being slowed down.”

More information on the different speeds needed for broadband users can be found on Go.Compare’s website.

-​​ENDS-

November 11th, 2024 | Andrew Hagger | News

New research from Leeds Building Society has revealed that savers will potentially miss out on more than £56,500 in tax-free savings through the planned 12-year freezing of the ISA allowance threshold.

Whilst only 16.9% of savers used the full amount of their tax-free allowance last year, many people had hoped that the Chancellor would finally raise the £20,000 ISA allowance, which has stayed the same for seven years, as part of the Autumn Budget.

However, the government’s decision to keep the ISA allowance the same for a further six years will mean by 2030 the threshold will have been frozen for 12 years, whilst CPI has continued to increase. Increasing the ISA allowance, even by a small amount, would be a way to give something back to savers.

Although savers may be relieved that the Chancellor has not placed any restrictions on how much money can be saved in total in ISAs, this means the value of their savings has decreased in real terms, as inflation has pushed up the cost of living.

Up to the end of the last tax year, just over £11,000 in tax-free savings has been ‘lost’ through the ISA allowance limit not keeping up with CPI, with a further £45,500 forecast to fall victim to inflation by the end of the 2029/30 tax year.

Leeds Building Society is encouraging savers to review their finances to ensure they are maximising any returns on savings. Even with the allowance capped, savers would be wise to maximise their ISA allowance where possible.

Catherine Wray, Senior Manager for Savings at Leeds Building Society, said: “ISAs are very popular with our customers and the population more broadly, allowing them to make the most of their savings without worrying about paying tax.

“Taxes are clearly an important part of life – without them it would be impossible to pay for public services and support those who are financially vulnerable.

“However, increasing the ISA allowance even by a small amount would be a way to give something back to savers across the country.

“This is particularly significant when the annual personal savings allowance, of £1,000 for basic rate taxpayers or £500 for higher rate taxpayers, has also remained unchanged for a number of years. As wages have increased whilst income tax thresholds have remained the same, more people have tipped into a higher tax bracket, impacting their tax-free allowance amounts and making ISAs even more important.”

ENDS

*Figures taken from the commentary for annual savings statistics: September 2024 – GOV.UK

Leeds Building Society Research Findings

The data has been compiled using the ONS Consumer Price Index figures and OBR predicted inflation figures. For each year, the previous annual inflation figure has been applied.

November 6th, 2024 | Andrew Hagger | News

American Express has today launched a series of limited-time sign-up offers, including the biggest ever upfront points offer on the Platinum^® Card, giving new Platinum Cardmembers 80,000 bonus Membership Rewards^® points and Gold Cardmembers 30,000 points where spend thresholds are met.

A Platinum offer

From today until 14 January 2025, Platinum Cardmembers can earn 80,000 bonus Membership Rewards^® points, worth £400*, when they successfully apply for the Card and spend £10,000 in their first six months. The offer is significantly increased from the usual maximum of 50,000 points, allowing Cardmembers to earn up to an additional 30,000 points.

Last month, the Platinum Card recently announced an extension of the Harvey Nichols £50 half-yearly credit, and an increased £400 credit to spend at selected restaurants, launching in January. This is on top of travel insurance for the Cardmember and their family, airport lounge access, and more. The benefits are worth more than £3,000.

A Golden time to sign up

New Gold Cardmembers can earn an enhanced 30,000 bonus Membership Rewards^® points when they successfully apply for the Card and spend £3,000 in their first three months. The offer is boosted from the original 20,000 points, and is worth £150. Again, Cardmembers must apply and be approved by 14 January, 2025.

The Gold Card is free for the first year. Gold Cardmembers get four Priority Pass lounge accesses each year, £120 in Deliveroo statement credits a year, and enhanced points-earning opportunities (including 2x points for every £1 spent directly with airlines or in a foreign currency) and bonuses (every time a Cardmember spends £5,000 they will get 2,500 bonus Membership Rewards^® points, up to 12,500 bonus points per year).

Membership Rewards^® points can be redeemed across a variety of offers. For example, 30,000 points could be redeemed up to £150 in gift vouchers at a range of shopping, travel and lifestyle partners. It can also be used to offset purchases made on the Card, or redeemed against flights and hotels with Amex Travel. To view the range of rewards, Cardmembers simply need to visit the Memberships Rewards page online or on the Amex^® App and browse and redeem the rewards available to them.

Invite A Friend offer – available to new and existing Cardmembers

With new sign up bonuses comes new offers across the American Express Invite a Friend referral programme, also running until 14 January, 2025.

Current Platinum Cardmembers who successfully refer a friend will receive 18,000 points, up from 12,000, while the referred friend will receive 100,000 points which is worth £500 and is nearly double the usual 55,000 points on offer, if they spend £10,000 in the first 6 months.

Gold Cardmembers who successfully refer a friend will receive 14,000 points, up from 9,000. The referred friend will receive 40,000 points, significantly more than the 22,000 points they’d normally receive, when they spend £3,000 in their first 3 months.

Cardmembers simply need to follow the instructions in the Amex App or their online Account to find their referral link. The friend must be approved for the relevant Card before the Cardmember receives their points, and existing Cardmembers can earn a maximum of 90,000 bonus points from referrals each year.

Dave Edwards, Vice President, American Express, commented: “With the festive season fast approaching it’s a busy time for present buying and hosting. Amex^® Cardmembers earn rewards as they spend, making their money go further, so it’s a great time to consider taking out an Amex^® Card. And even more so with the generous sign up bonuses we’ve launched today.

“On the subject of gifting, existing Cardmembers could also consider giving their friends a very special Christmas present – even more bonus points when they sign up for a Gold or Platinum Card – when they use their unique referral link, while earning some additional points for themselves at the same time.”

October 31st, 2024 | Andrew Hagger | News

 American Express today announced benefits enhancements on The Platinum Card^®, giving Cardmembers £400 back when they spend at restaurants.

Launching in early January 2025, Cardmembers can receive £100 back when they dine at participating UK restaurants between January and June, then another £100 between July and December. The same cashback benefits will apply to Cardmembers who dine at selected international restaurants over the same periods. Combined, Cardmembers are eligible to receive up to £400 back a year.

This enhanced dining benefit provides an additional £100 of dining credit compared to the current offer, which expires on 31 December 2024, and gives Cardmembers a total of £150 to spend at selected UK restaurants, and £150 at selected international restaurants (£300 total) a year.

A current list of the more than 2,000 participating restaurants, which are hand-picked by Amex dining experts, can be found here. Restaurants include Berenjak Soho, Tattu Manchester and Bread Street Kitchen Edinburgh.

To be eligible to receive the credits, Cardmembers must enrol for the benefit in the Amex Offers section of their App or Online Account when the new offer launches in early January.

Harvey Nichols

American Express has also extended its Harvey Nichols credit – which was originally due to expire 31 December 2024 – to 30 June 2025. This benefit gives Cardmembers £50 back every six months when they shop online or instore at Harvey Nichols.

As with the dining credit, Cardmembers can enrol in the Amex Offers section of their App or online account. However, unlike the dining credit, Cardmembers who have already enrolled do not need to re-enrol.

Caroline Bouvet, Vice President, American Express, commented: “We know our Platinum Cardmembers value premium benefits and offers that match their lifestyle. Whether it’s a fine dining establishment, or a cosy local gem, our Cardmembers enjoy using their dining credit, so it’s great that we’re able to add even more value to it, while at the same time extending the Harvey Nichols credit.

“And with a sign-up bonus of up to 50,000 Membership Rewards^® points, which could equal up to £250 in value, this really is a great time to sign up.”

Designed for those that are looking for an array of premium travel and lifestyle benefits, The Platinum Card^® allows Cardmembers to enjoy exclusive experiences, access and perks, including:

• Hotel benefits, including complimentary room upgrades and late check outs
• Global Lounge Access, with access to over 1,400+ airport lounges across 140 countries, including 30 Centurion Lounges
• Travel insurance for the Cardmember and their family
• Exclusive access to lower fares in First, Business and Premium Economy with the International Airline Program
• Ability to earn at least 1 Membership Rewards^® point for every £1 spent and up to a further 90,000 Membership Rewards points annually by referring friends
• Unrivalled access to presale tickets, as well as the best seats and exclusive offers at some of the UK’s most sought-after film, music, theatre, dining and entertainment events including early access to Wimbledon tickets each year.
• New Cardmembers who sign up for the Card can earn 50,000 additional Membership Rewards points when they spend £6,000 in their first three months of Cardmembership

Dining credit terms can be found here. Harvey Nichols terms can be found here.

The Platinum Card^® has an annual fee of £650 and a Representative APR of 701.4%. Full terms and conditions apply. 18+. Subject to status. For more information please visit: https://www.americanexpress.com/en-gb/credit-cards/platinum-card/

October 29th, 2024 | Andrew Hagger | News

UK travellers could be owed an estimated £44.7 million in refunds for Air Passenger Duty (APD), according to new research. The study says that around one in 10 Brits could be eligible, but more than three-quarters (77%) of these travellers are unaware they might be owed a refund. In this case, it means millions potentially going unclaimed from airlines.

The figures come from Go.Compare, which asked Brits about their travel experiences over the last year to find out how many could be owed a refund. It then multiplied this by the average APD paid per passenger to uncover how much flyers could be entitled to.

APD, sometimes referred to as airport tax, is an excise tax on flights from the UK designed to raise funds for the government and encourage the use of more sustainable modes of transport. Although airlines are required to pay the tax, the expense is often passed on to the customer in the ticket price.

However, the tax is only payable once the traveller has flown, meaning anyone who bought a ticket but then didn’t travel should be able to claim back the tax – even on a non-refundable ticket.

The insurance comparison site says that only a third of Brits have heard of APD. As a result, 3.6 million UK adults could be owed the refund without them even realising, equal to a small fortune in unclaimed repayments. Now it’s urging travellers to check if they could be entitled to claim their money back.

Holidaymakers could be reimbursed for the tax if they missed a flight and had to buy a second ticket, cancelled a booking for a non-refundable plane ticket or didn’t fly because their flight was cancelled. Eligible travellers could be owed up to £224 depending on the destination and flight class of their journey, and can claim by contacting the airline and providing their trip details.

Rhys Jones, travel insurance expert at Go.Compare, says: “Very few travellers know what Air Passenger Duty is and understand how it works. This means millions could be entitled to some money from their airline without even realising it.

“Your eligibility for the refund and how much you can claim depends on the circumstances of your trip, so you will need to check if you’re entitled to anything first. Keep in mind that you’ll likely only be refunded if you didn’t travel, so if you were placed on another flight as a result of a cancellation, for instance, you probably won’t be eligible, since you still flew.

“But, if for example you missed your flight and had to buy another ticket for a later departure, you could claim back the tax on the original ticket, as you paid the APD twice but only flew once. Some airlines do impose a deadline and an admin fee to claim, which can mean it isn’t worthwhile for some trips, but not all of them do this, so it’s worth looking into for your journey.

“You won’t be able to claim for any knock-on expenses as a result of an incomplete journey here either, that’s what your travel insurance is for. But, it’s a great way to take the sting out of a disappointing day at the airport.”

More information on how to claim an APD refund can be found on Go.Compare’s website.

October 22nd, 2024 | Andrew Hagger | News

Millions of UK adults risk leaving grieving loved ones without access to cherished memories and vital information by neglecting to plan for their digital legacy, a new survey by Will Aid shows.

The national Will-writing campaign has revealed 42% of respondents overlooked the critical need to include digital assets in estate planning – meaning friends and family may face significant challenges in the event of their death, including the loss of treasured photographs, and difficulties in managing financial affairs.

Key findings from the poll, which surveyed 2,000 people across the UK, show:

• 58% of respondents believe it is important to include access to passwords for social media accounts, email, and other digital assets in their Wills. 

• 28% remain indifferent

• 14% feel it is unimportant

As the world becomes increasingly digital, our online lives leave behind an important, but often overlooked, legacy.

The rise of digital banking, cloud storage, and the prevalence of social media means that a person’s online presence and assets can be just as valuable – if not more so – than their physical belongings. Yet, many individuals fail to consider this when preparing their Will, so sorting out the deceased’s estate becomes a more complicated task than it needs to be, adding stress to an already difficult time.

Michael Cressey, from Hadfield Bull and Bull solicitors, said: “In an age where so much of our lives are online, ensuring loved ones have access to your digital accounts after you die is crucial.

“Many people do not realise how much valuable information is stored in their email and online profiles – from financial records to cherished photographs. Failing to leave clear instructions and passwords can cause significant emotional and logistical hardship for those left behind.

“Leaving instructions for digital assets in a safe way not only ensures access to important assets but can also help loved ones manage practical matters such as closing accounts, settling bills, and even notifying institutions of the death. There are ways that you can update your online accounts with Apple iPhone by using the ‘legacy’ function in your phone settings, which will help you plan for the future.”

The annual Will Aid campaign sees solicitors across the UK volunteering their time to write Wills throughout November, making it an ideal opportunity for people to get their wishes professionally drafted in a legal document, which will help to protect their loved ones in the future.

Peter de Vena Franks, Will Aid Campaign Director, said: “By planning ahead, individuals can help ensure their online legacy is managed according to their wishes, and spare their loved ones from additional stress.

“This year’s Will Aid campaign is the ideal time to talk to a solicitor, and ensure their wishes are clearly documented, giving them peace of mind that their loved ones will be spared additional upset and stress in the event of their death.”

Will Aid is a partnership between the legal profession and seven of the UK’s best-loved charities.

The initiative, which has been running for more than 30 years, sees participating solicitors waive their fee for writing basic Wills every November.

Instead, they invite clients to make an upfront donation to Will Aid – a suggested £100 for a single basic Will and £180 for a pair of basic ‘mirror’ Wills.

Appointments are available now, and you can sign up by visiting www.willaid.org.uk.

Donations to the campaign are shared by Will Aid’s partner charities, which operate both here in the UK and around the world.

For more information on Will Aid and how to get involved visit www.willaid.org.uk

October 22nd, 2024 | Andrew Hagger | Uncategorized

In the last year, over half (54%) of learner drivers needed more than one attempt to pass their driving test, raising questions about whether learners are taking their practical test too soon.[1] Despite this high failure rate, only one out of every 10 (11%) drivers felt they tested before they were ready, suggesting that while many don’t pass the first time, they generally feel prepared beforehand.[2]

The research from Go.Compare Car Insurance explores how financial penalties might influence learner drivers. Recent proposals from the RAC suggest increasing fees for those needing multiple test attempts.[3] The insurance comparison site surveyed drivers to see how such fees might change behaviour.

The results show that a third of drivers say they would’ve delayed their test until they were more confident if faced with higher fees for multiple attempts.[2] Similarly, 29% would’ve reconsidered if higher insurance premiums were in place after multiple failures – another factor that could influence drivers.

Younger drivers, aged 18 to 24, were especially cautious about potentially lofty insurance costs, with 41% saying they would have delayed their test under the threat of higher premiums and over a third (36%) stating they would have delayed if fees increased for more than one attempt.

Despite awareness of the financial burden of failing, there’s limited support for increasing fees or premiums. Only 9% backed the idea of higher test fees for repeat attempts, and just 12% supported higher insurance costs for those who fail multiple times.

Tom Banks, car insurance expert at Go.Compare, said: “While learner drivers might not feel they’re testing too soon, the reality is that many will need multiple attempts to pass, and financial penalties could influence their timing – though not everyone agrees that higher costs are the right solution.

“Premiums are already at their most expensive once you’ve just passed, as you haven’t built up a no-claims bonus, with an average annual premium of £1,523 for those with less than a year’s experience under their belts.[4] This is especially true for younger drivers – aged between 17 and 24 – who are seen to be a higher risk.

“It’s important to strike the balance between encouraging better preparation and not penalising learners who might simply need more time or who struggle with test anxiety. Whether higher fees for tests or insurance would lead to better preparedness or simply add stress to an already challenging process remains to be seen.”

Find more information about driver opinions on higher fees for failed driving tests on the Go.Compare website.

October 18th, 2024 | Andrew Hagger | News, Uncategorized

While it differs company to company, the majority of new mothers will not receive their full pay for their maternity leave.

For the first six weeks of statutory maternity leave, new mothers will receive 90% of their average pay.

However, after the first six weeks, new mothers will only receive a statutory payment of £184.03 per week or 90% of their average earnings, whichever is lower.

While maternity leave is only 39 weeks, research has found that 45% of new mothers actually extend this.

Due to the lower income new mothers receive, it’s important to start thinking of cutting costs down and putting money towards maternity pay.

Christie Cook, Financial Expert at Hodge Bank, discusses five ways of saving for your maternity leave:

Budgeting

“To prepare for a major life event like maternity leave, the first step is to start budgeting and cutting unnecessary expenses. Instead of spending on takeaways, for example, put that money into savings..

An average takeaway for two will set you back £30 – equivalent to around 99 nappies. This sounds like a lot, but considering the average newborn will go through 10-12 a day – 99 would  last just eight days!

Save money by avoiding branded items to suit your budget and ensuring you’re sticking to your shopping list while in your local supermarket rather than getting sucked into those deals.”

Get Selling

“What better way to make room for the new addition  than by selling some of your unwanted items you’ve been hoarding these past few years.

Get on your local selling sites such as Facebook Marketplace and Vinted and sell items you forgot you had. You’re going to need wardrobe space for the new baby’s clothes, nappies and accessories, so what better way to make room than by sending your unwanted items on to new homes and making some extra money in the process?”

Free Events

“Life wouldn’t be a life worth living if you stayed home 24/7 to save money, right? But there are free events you can enjoy instead of spending £20 on a cinema trip or £50 on a meal.

As winter approaches, bundle up and enjoy a winter walk with a homemade hot chocolate in your takeaway cup, making the most of a crisp sunny day.

Use sites like Eventbrite to find free local events. These small savings can help you afford activities during maternity leave, like baby yoga, soft play, and swimming, which do come with costs.”

Review Subscriptions

“Every few months, review your bank account for subscriptions and decide if they’re still necessary, especially as maternity leave approaches. For example, if you’re paying more than £30 for Netflix, Disney Plus, and Amazon Prime Video but mainly watch one, consider cancelling the rest.

Similarly, evaluate your gym membership—many streaming services offer workout videos that may be more convenient once the baby arrives, and you’ll be able to squeeze in a 15-minute YouTube routine around the newborn’s napping schedule.”

Take Advantage of Interest

“While you can’t touch a Fixed Rate ISA for at-least a year, for most people, maternity pay often decreases the further you get into your leave. 

So, if you’re four months into your pregnancy and you choose to open a savings account now, then you won’t be able to touch your ISA until the third month of your leave.

However, when that third month comes around, which will be fast, you’ll not only have the money you’ve been saving each month, but you’ll also have the additional interest too.” 

For access to more saving tips from Hodge Bank, sign up to their monthly newsletter here:

https://hodgebank.co.uk/savings-newsletter-sign-up/

October 17th, 2024 | Andrew Hagger | News

A new study has revealed that sports cars retain more of their value than any other type of car when resold. According to the latest car valuation data looking at prices for cars after three years and 36,000 miles of use, sports cars boast an average retained value of 52.38% – more than any other vehicle type.

The research comes from Auto Express, which analysed figures from used car market experts VIP Data. It divided every mainstream new car currently on sale into vehicle types and compared the average retained value figure for each vehicle type category. This gave a detailed picture of the varying depreciation performance of different car types on the UK market, highlighting that some kinds of car hold their value significantly better than others.

The retained values in the sports car sector were propped up by models from the three top performing car brands for depreciation – Alpine, Morgan, and Lotus. Each of these brands recorded an average retained value of more than 57%.

While sports cars top the list, SUVs and premium hatchbacks aren’t too far behind, as both also hold more than 50% of their value on average after three years and 36,000 miles. It means that, for those able to afford them, these vehicle types make a cost-effective choice for drivers who intend to sell up once their cars reach a few years old.

Microcars and MPVs also made it into the top five, retaining an average of 50.23% and 49.16% of their values, respectively. The figures for the top five vehicle types can be found below:

At the other end of the scale, the data found that luxury cars lose the most value, retaining only 42.73% after three years. However, it’s not just high-end cars that tend to retain less value, as family hatchbacks and large family cars also come towards the bottom of the list. Large family cars only retain around 45.6% of their value after three years, while family hatchbacks hold on to just 43.76%.

This poor performance of family hatchbacks, including well-known models like the Ford Focus and Vauxhall Astra, is in contrast to the strong showing from premium hatch models like the BMW 1 Series and Audi A3. It indicates that drivers who can pay a little more for a premium badge should get more back when the time comes to sell.

Paul Barker, Editor of Auto Express, said: “Our latest analysis shows that sports cars are currently top of the pile for retained value. It’s a trend we feel is partly driven by a diminishing number of such models available to buy new. This, together with the high prices of sports cars, is pushing up prices for used cars that hit the market a few years down the line, meaning sellers could get a better price.

“When it comes to luxury cars, the worst-performing category for depreciation, it’s a case of the big luxury saloon falling firmly out of favour with private buyers. While the luxury SUV market has grown, and we see these large SUVs with premium badges holding onto their value strongly, models like the Audi A8 and BMW 7 Series are less sought-after. This results in a lower return when owners go to sell.”

More information about which car types retain the most value can be found on Auto Express’ website.