Home Equity Interest Rate Calculator

Car Depreciation Calculator

Excellent (Like New) Good (Minor Wear) Fair (Visible Wear) Poor (Damaged/Mechanical Issues)

Estimate Results

Current Estimated Value

Total Depreciation

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('vehicleAge').value); var mileage = parseFloat(document.getElementById('totalMileage').value); var condition = document.getElementById('vehicleCondition').value; if (isNaN(price) || price <= 0) { alert("Please enter a valid purchase price."); return; } if (isNaN(age) || age < 0) { age = 0; } if (isNaN(mileage) || mileage 0) { // Year 1 hit currentValue = currentValue * 0.80; // Subsequent years if (age > 1) { for (var i = 1; i averageMileage) { var excess = mileage – averageMileage; var mileagePenalty = (excess / 10000) * 0.015; // 1.5% per 10k miles over average currentValue = currentValue * (1 – mileagePenalty); } // 3. Condition Adjustment var conditionMultiplier = 1.0; if (condition === "excellent") conditionMultiplier = 1.05; if (condition === "good") conditionMultiplier = 1.0; if (condition === "fair") conditionMultiplier = 0.85; if (condition === "poor") conditionMultiplier = 0.65; currentValue = currentValue * conditionMultiplier; // Floor the value at 10% of original price (salvage value) if (currentValue < (price * 0.1)) { currentValue = price * 0.1; } var lostValue = price – currentValue; var lostPercentage = (lostValue / price) * 100; document.getElementById('estimatedValue').innerText = "$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('totalLost').innerText = "$" + lostValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('summaryText').innerText = "Your vehicle has lost approximately " + lostPercentage.toFixed(1) + "% of its original value. Factors like market demand for specific models and maintenance history can further influence this figure."; document.getElementById('resultsArea').style.display = 'block'; }

Every time you drive a new car off the dealership lot, its value drops significantly. This phenomenon is known as car depreciation. For most vehicle owners, depreciation is the single largest cost of car ownership—even higher than fuel, insurance, or maintenance.

What is Car Depreciation?

Depreciation is the difference between the price you paid for your vehicle and the amount you can sell it for later. On average, a new car loses about 20% of its value in the first year and roughly 60% of its value after five years. Understanding this curve is vital for anyone looking to trade in, sell, or buy a used vehicle.

Key Factors That Influence Depreciation

• Mileage: The more miles a car has traveled, the lower its value. High mileage suggests more wear and tear on the engine and suspension.
• Brand and Reliability: Brands known for longevity (like Toyota or Honda) tend to hold their value much better than luxury brands that have high repair costs.
• Condition: Smoker odors, stains, or mechanical issues can slash thousands off the resale price.
• Number of Owners: A vehicle with a single owner is generally more valuable than one that has changed hands four or five times.
• Fuel Economy: In times of high gas prices, fuel-efficient cars and EVs retain value better than gas-guzzling SUVs.

Real-World Example

Imagine you purchase a new sedan for $40,000. Here is a typical depreciation schedule:

• Year 1 (20% loss): Value drops to $32,000.
• Year 3 (40% total loss): Value drops to $24,000.
• Year 5 (60% total loss): Value drops to $16,000.

By using our Car Depreciation Calculator, you can adjust for mileage and condition to get a more accurate picture for your specific situation.

How to Minimize Depreciation

While you cannot stop depreciation entirely, you can slow it down. First, consider buying a "near-new" used car (2-3 years old) to let the first owner take the biggest financial hit. Second, keep meticulous service records; a documented history of oil changes and inspections proves to buyers that the car was cared for. Finally, keep the mileage within the national average of 12,000 to 15,000 miles per year to avoid "high-mileage" penalties.