Car Depreciation Calculator
Sedan / Standard
SUV / Truck
Luxury Vehicle
Electric Vehicle (EV)
Estimated Current Value:
Total Depreciation:
Percentage of Value Lost:
How Car Depreciation Works
Car depreciation is the difference between the amount you paid for your vehicle and what it is worth today. For most owners, depreciation is the single largest expense of vehicle ownership, often exceeding fuel, insurance, or maintenance costs. A new car typically loses about 20% of its value in the first year and roughly 15% each year thereafter.
Key Factors Influencing Your Car's Resale Value
- Mileage: The more miles a car has, the lower its value. Standard usage is considered 12,000 to 15,000 miles per year. Exceeding this will accelerate depreciation.
- Vehicle Condition: Scratches, dents, interior stains, and mechanical issues significantly drop the resale price.
- Brand Reputation: Brands known for reliability (like Toyota or Honda) tend to hold their value much better than luxury brands with high maintenance costs.
- Number of Owners: A single-owner vehicle is generally more desirable and holds more value than a car that has changed hands multiple times.
Example Calculation
If you purchase a luxury sedan for $50,000 and keep it for 3 years with standard mileage:
- Year 1: Value drops to $40,000 (20% loss).
- Year 2: Value drops to $34,000 (15% loss of remaining value).
- Year 3: Value drops to $28,900 (15% loss of remaining value).
In this scenario, you have lost over $21,000 in just three years of ownership.
Tips to Minimize Depreciation
While you cannot stop depreciation, you can slow it down by keeping detailed service records, maintaining a clean interior, parking in a garage to protect the paint, and choosing car colors that are popular (like white, silver, or black) which are easier to resell.