Estimate the current market value of your vehicle based on age and usage.
Standard average is 15-20% per year.
Estimation Results
Estimated Current Value:
Total Value Lost:
Total Depreciation Percentage:
Understanding Car Depreciation
Depreciation is the difference between the amount you spent when you bought your car and the amount you get back when you sell or trade it in. For most vehicle owners, depreciation is the single largest expense of owning a car, often exceeding fuel, insurance, or maintenance costs.
How Car Depreciation is Calculated
This calculator uses the "Reducing Balance Method." Unlike straight-line depreciation, cars lose a percentage of their remaining value each year. Typically, a new car loses about 20% of its value in the first year and roughly 15% each year thereafter until it reaches its scrap value.
Top Factors Influencing Your Car's Value
Mileage: The higher the odometer reading, the lower the market value.
Condition: Significant wear and tear, interior stains, or exterior dents decrease value.
Service History: A documented history of regular maintenance at certified dealerships helps maintain value.
Number of Owners: Fewer owners generally suggest better care and reliability.
Fuel Efficiency: As gas prices rise, fuel-efficient vehicles tend to hold their value better than "gas guzzlers."
Typical Depreciation Example
Year
Estimated Value (Starting at $30,000)
Total Loss (%)
New
$30,000
0%
Year 1
$24,000
20%
Year 3
$18,000
40%
Year 5
$12,000
60%
Tips to Minimize Value Loss
To keep your car's resale value as high as possible, consider keeping the mileage low, parking in a garage to protect the paint, and choosing popular "neutral" colors like silver, white, or black. Most importantly, stay on top of mechanical maintenance to ensure the car runs as well as it looks when it comes time to sell.
function calculateCarDepreciation() {
var price = parseFloat(document.getElementById('purchasePrice').value);
var age = parseFloat(document.getElementById('carAge').value);
var rateInput = parseFloat(document.getElementById('depreciationRate').value);
var resultsDiv = document.getElementById('resultsArea');
var currentValText = document.getElementById('currentValOutput');
var totalLostText = document.getElementById('totalLostOutput');
var percentLostText = document.getElementById('percentLostOutput');
if (isNaN(price) || isNaN(age) || isNaN(rateInput) || price <= 0 || age < 0) {
alert("Please enter valid positive numbers for price and age.");
return;
}
// Depreciation Formula: V = P * (1 – r)^n
var rate = rateInput / 100;
var currentValue = price * Math.pow((1 – rate), age);
var totalLost = price – currentValue;
var totalPercentLost = (totalLost / price) * 100;
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
currentValText.innerText = formatter.format(currentValue);
totalLostText.innerText = formatter.format(totalLost);
percentLostText.innerText = totalPercentLost.toFixed(2) + "%";
resultsDiv.style.display = "block";
}