Car Depreciation Calculator
Estimate the future resale value of your vehicle based on market trends and mileage.
Sedan / Economy (15%)
Truck / SUV (12%)
Luxury Vehicle (22%)
Electric Vehicle (18%)
Low (< 10,000 miles)
Average (12,000 – 15,000 miles)
High (> 15,000 miles)
Estimation Summary
Estimated Market Value:
$0.00
Total Value Lost:
$0.00
Retained Value:
0%
How Car Depreciation Works
Depreciation is the difference between the amount you spend when you buy a car and the amount you get back when you sell or trade it in. For most consumers, depreciation is the single largest cost of owning a new vehicle, often exceeding fuel, insurance, or maintenance expenses.
Key Factors Affecting Your Car's Value
- The "Drive-Off" Effect: A new car can lose 10% to 20% of its value the moment you drive it off the dealership lot.
- Mileage: The more miles on the odometer, the lower the value. Average drivers cover about 13,500 miles per year; exceeding this significantly accelerates depreciation.
- Vehicle Class: Luxury cars often depreciate faster than economy sedans or popular trucks because the maintenance costs increase significantly as the warranty expires.
- Condition & History: Accidents, smoking inside the vehicle, or a lack of service records can slash thousands off the resale price.
Example Calculation
If you purchase a SUV for $40,000 and it depreciates at an average rate of 12% per year, after 3 years, the calculation looks like this:
- Year 1: $40,000 – 12% = $35,200
- Year 2: $35,200 – 12% = $30,976
- Year 3: $30,976 – 12% = $27,259
In this scenario, your vehicle has lost approximately $12,741 in value over three years of ownership.
Tips to Minimize Depreciation
To keep your car's value as high as possible, consider choosing models with high reliability ratings, keeping mileage within average limits, and maintaining a detailed service log. Neutral colors like white, black, and silver also tend to hold value better than "loud" colors because they appeal to a broader secondary market.