THE Jaguar X-type has thrown down the gauntlet to the BMW 3- series by having the highest residual values of its sector for three years/60,000 miles, according to Glass's Information Services. The X-type will retain 50.5% of its value while rivals, including Audi's A4, BMW 3-series and the Lexus IS200, all hold about 48% of their value over the same period, the March issue of Glass's Guide reveals.

When looking at the 'money lost' on the Jaguar through depreciation, it comes second to the Lexus IS200, which loses £11,019, while the Jaguar loses £12,499. Rupert Pontin, specialist car editor at Glass's Information Services, said: 'With the X-type coming to the market, we may see a realignment of the contenders and the BMW 3-series may be knocked from its top spot. Jaguar has worked very hard to make sure this car meets the market demands.'

But he warned the success of the car was in the hands of the dealer network, adding: 'From now on dealers will need to come to grips with the business of addressing the wider market appeal of the family-sized premium brand sector.' However, Mark Norman, senior editor of CAP Black Book, said the X-type was more likely to compete with BMW directly rather than knock the manufacturer off the top spot altogether.