Car Depreciation Calculator
Estimate the current resale value of your vehicle based on market age and annual loss rates.
10% (Low / Luxury Retention)
15% (Average Sedan/SUV)
20% (High / Budget Brands)
25% (Electric/Fast Depreciation)
Excellent (Low Mileage)
Good (Average Use)
Fair (High Mileage)
Poor (Heavy Damage/Wear)
Estimation Results
Estimated Resale Value:
$0.00
Total Value Lost:
$0.00
Percent of Original Value:
0%
Average Monthly Cost:
$0.00
How Car Depreciation Works
Car depreciation is the difference between the amount you spent when you bought your vehicle and the amount you can get when you sell or trade it in. Most new cars lose 15% to 20% of their value in the first year alone, and roughly 15% each year thereafter.
Key Factors Influencing Your Car's Value
Several factors determine how quickly a car loses its value:
- Mileage: Higher mileage usually results in a lower resale value because it indicates more wear and tear on the engine and components.
- Brand Reputation: Brands known for reliability (like Toyota or Honda) tend to hold their value longer than luxury brands with high maintenance costs.
- Market Demand: If gas prices are high, fuel-efficient hybrids may depreciate slower than large SUVs.
- Condition: Regular maintenance records and a clean interior can significantly slow down the depreciation curve.
Realistic Example
If you purchase a new SUV for $40,000 and keep it for 5 years with an average annual depreciation rate of 15%, the math looks like this:
- Year 1: $34,000
- Year 2: $28,900
- Year 3: $24,565
- Year 4: $20,880
- Year 5: $17,748 (Final Estimated Value)
By using this calculator, you can better plan your next trade-in or determine if a lease might be more cost-effective than a purchase.