2017 Effective Tax Rate Calculator

Car Depreciation Calculator

Estimate your vehicle's current market value and total value loss.

Economy Sedan (15%/yr) SUV / Truck (12%/yr) Luxury Vehicle (20%/yr) Electric Vehicle (18%/yr)

Excellent Good / Average Fair Poor

Calculation Summary

Estimated Current Value: $0.00

Total Depreciation Loss: $0.00

Retained Value Percentage: 0%

Understanding Car Depreciation

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. It is often the single largest expense of owning a vehicle, yet many drivers overlook it because it isn't a monthly bill.

How Depreciation is Calculated

Most vehicles lose 15% to 20% of their value in the first year. After that, they typically lose about 10% to 15% per year. Our calculator uses a declining balance method adjusted for vehicle type and condition:

• Luxury Vehicles: Often depreciate faster (up to 20-25% annually) due to high maintenance costs and rapid technology shifts.
• SUVs and Trucks: Generally hold their value better (10-12% annually) due to high demand and durability.
• Condition Factor: Vehicles in "Excellent" condition see a 5% bonus in retained value, while "Poor" condition can result in a 20% additional deduction.

Real-World Example

Imagine you buy a new SUV for $40,000. Here is how the math usually breaks down over 3 years:

1. Year 1: Value drops by 20% ($8,000 loss). Value: $32,000.
2. Year 2: Value drops by another 12% of remaining ($3,840 loss). Value: $28,160.
3. Year 3: Value drops by another 12% ($3,379 loss). Final Value: $24,781.

In this scenario, you have "spent" over $15,000 just in lost value, even before considering gas, insurance, or maintenance.

Tips to Minimize Depreciation

• Buy Used: Purchasing a 2-3 year old car avoids the initial 20% "off-the-lot" drop.
• Keep Records: A complete service history proves the car was well-maintained, supporting a "Good" or "Excellent" condition rating.
• Limit Mileage: Excessive mileage is a primary driver of rapid depreciation.
• Neutral Colors: Silver, white, and black cars tend to resell faster and for more money than "niche" colors.

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var years = parseFloat(document.getElementById('vehicleAge').value); var type = document.getElementById('vehicleType').value; var condition = document.getElementById('vehicleCondition').value; if (isNaN(price) || isNaN(years) || price <= 0 || years 1) { currentValue = currentValue * Math.pow((1 – annualRate), (years – 1)); } } // Adjust for condition var conditionModifier = 1.0; if (condition === 'excellent') conditionModifier = 1.05; if (condition === 'fair') conditionModifier = 0.85; if (condition === 'poor') conditionModifier = 0.70; currentValue = currentValue * conditionModifier; // Prevent value from going below 5% of original (scrap value) if (currentValue < (price * 0.05)) { currentValue = price * 0.05; } var totalLoss = price – currentValue; var retainedPercent = (currentValue / price) * 100; // Display Results document.getElementById('resCurrentValue').innerText = '$' + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalLoss').innerText = '$' + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resPercentage').innerText = retainedPercent.toFixed(1) + '%'; document.getElementById('resultsArea').style.display = 'block'; }