Mahindra Finance Interest Rate Calculator

Car Depreciation Calculator

function calculateCarValue() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('carAge').value); var mileage = parseFloat(document.getElementById('totalMileage').value); var type = document.getElementById('vehicleType').value; var resultDiv = document.getElementById('depreciationResult'); if (isNaN(price) || isNaN(age) || isNaN(mileage) || price 0) { var firstYearDrop = 0.20; var yearsAfterFirst = Math.max(0, age – 1); // Calculate value after first year var firstYearValue = price * (1 – firstYearDrop); // Calculate value for remaining years currentValue = firstYearValue * Math.pow((1 – annualRate), yearsAfterFirst); } // Mileage Adjustment (Industry average is 12,000 miles/year) var expectedMileage = age * 12000; if (mileage > expectedMileage) { var excessMiles = mileage – expectedMileage; // Penalty of roughly $0.15 per excess mile relative to original price impact var mileagePenalty = (excessMiles * 0.08); currentValue = currentValue – mileagePenalty; } else if (mileage 0) { var lowerMiles = expectedMileage – mileage; var mileageBonus = (lowerMiles * 0.04); currentValue = currentValue + mileageBonus; } // Floor value (cars rarely worth less than 10% of price unless scrap) if (currentValue < (price * 0.10)) { currentValue = price * 0.10; } var totalLoss = price – currentValue; var lossPercentage = (totalLoss / price) * 100; resultDiv.style.display = "block"; resultDiv.style.borderLeftColor = "#27ae60"; resultDiv.innerHTML = "

Results

" + "Estimated Market Value: $" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" + "Total Depreciation: $" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" + "Percentage Lost: " + lossPercentage.toFixed(1) + "%" + "*Note: This is an estimate based on market averages. Actual value depends on local demand, maintenance history, and specific car condition."; }

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Understanding Car Depreciation: How Much Is Your Car Actually Worth?

Car depreciation is the difference between the amount you spent when you bought your vehicle and the amount you can get for it when you sell or trade it in. For most consumers, depreciation is the single largest "hidden" cost of owning a vehicle, often exceeding the cost of fuel, insurance, or maintenance.

Key Factors That Influence Depreciation

• The "Drive-Off" Effect: Most new cars lose 10% to 20% of their value the moment you drive them off the dealership lot.
• Mileage: The more miles a car has, the lower its value. Most calculators assume an average of 12,000 to 15,000 miles per year.
• Condition: Dents, scratches, interior stains, and mechanical issues significantly accelerate the loss of value.
• Brand Reputation: Brands like Toyota and Honda typically retain value better than luxury brands like BMW or Mercedes-Benz due to perceived long-term reliability and lower maintenance costs.
• Fuel Economy and Trends: As gas prices rise, large SUVs may depreciate faster, while hybrids and fuel-efficient cars may hold their value better.

How to Minimize Your Vehicle's Depreciation

While you cannot stop depreciation entirely, you can slow the process down with these strategic moves:

1. Buy Slightly Used: Purchasing a 2-3 year old vehicle allows the first owner to take the massive initial 30% hit.
2. Maintain Detailed Records: A car with a fully documented service history sells for more than one with a mysterious past.
3. Keep Mileage in Check: Try to keep your annual driving close to or below the national average of 12,000 miles.
4. Choose Neutral Colors: While "Electric Lime" might be your favorite color, silver, white, and black cars are much easier to resell.

Real-World Example Calculation

Imagine you purchased a Standard Sedan for $30,000. After 3 years of driving 12,000 miles per year (36,000 total miles):

• Year 1 (20% loss): Value drops to $24,000
• Year 2 (15% loss): Value drops to $20,400
• Year 3 (15% loss): Value drops to approximately $17,340

In this scenario, your car has lost nearly 42% of its original value in just three years. Using our calculator above, you can plug in your specific vehicle type and mileage to get a more accurate picture of your car's current financial standing.