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Small car owners lost the least amount of money in terms of depreciation in 2006, according to our latest research. Nine out of the top 10 cars that saved their owners the most amount of cash in over a year of ownership were small hatchbacks. These findings also highlight an increasing trend among buyers to opt for smaller cars that tend to be more economical and better for the environment.

The best of the small cars is the Toyota Aygo. On average it lost just £2,000 – less than any other car on sale in the UK last year. This works out at the equivalent of just £40 a week – the cost of a handful of DVDs. The secret of Aygo’s success lies in its appeal. It’s cheap to buy, cheap to run and well equipped. Plus it’s fun, easy to drive and, with 68mpg possible on the Combined cycle, it’s Britain’s most economical car. These are all factors that tempt buyers and keep demand high.

Despite being on sale since 2002, the Honda Jazz continues to impress when it comes to re-sale values. It’s still one of the market leaders for practicality and interior flexibility, while the introduction of a new, more frugal, 1.2-litre engine and a re-freshed interior has re-ignited appeal. It’s a similar story for the Volkswagen Polo, which was on sale in 2006 with a new look and better equipment, helping to push up re-sale values.

The Peugeot 107 and Citroën C1 are the two other strong performers in the top five. It’s hardly surprising as they’re the sister cars of the Toyota Aygo. All three come out of the same factory with a similar specification. The Toyota badge – and the dependability associated with it – means the Aygo fractionally pips the two French models to the top spot.

Small cars today do nearly everything that larger ones further up the range do. They’re well equipped, frugal and often come with space-maximising practicality. Demand is strong for the best models, which keeps prices high. Last year it was seven in the top ten, this year it’s nine. It’s a trend that shows no sign of stopping.

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