Excellent (Mint)
Good (Normal Wear)
Fair (Visible Wear)
Poor (Damaged)
Valuation Results
Understanding Car Depreciation
Car depreciation is the difference between the amount you paid for your vehicle and what it is worth today. Most cars lose about 20% of their value in the first year alone, and roughly 15% each year thereafter for the first five years.
Key Factors That Influence Depreciation
Mileage: High mileage significantly lowers a car's value. The average car covers about 12,000 to 15,000 miles per year. Exceeding this makes the car age faster in the eyes of buyers.
Maintenance History: A vehicle with a documented service history retains more value than one with unknown maintenance status.
Condition: Scratches, dents, interior stains, and mechanical issues drastically reduce the resale price.
Brand Reputation: Brands like Toyota and Honda typically depreciate slower than luxury brands like BMW or Mercedes-Benz due to perceived reliability and maintenance costs.
Practical Example
Imagine you purchased a brand new Honda CR-V for $35,000. After 3 years with 36,000 miles (standard use) and in Good condition:
Year 1 Depreciation (20%): -$7,000 (Value: $28,000)
Year 2 Depreciation (15%): -$4,200 (Value: $23,800)
Year 3 Depreciation (15%): -$3,570 (Value: $20,230)
Final Estimated Resale: Approximately $20,200
How to Minimize Depreciation
While you cannot stop depreciation, you can slow it. Choose colors that are broadly appealing (white, silver, black), keep accurate service records, and consider buying "nearly new" cars (2-3 years old) to let the previous owner take the biggest depreciation hit.
function calculateCarValue() {
var price = parseFloat(document.getElementById('carPrice').value);
var age = parseFloat(document.getElementById('carAge').value);
var mileage = parseFloat(document.getElementById('totalMileage').value);
var condition = document.getElementById('carCondition').value;
var resultDiv = document.getElementById('resultDisplay');
var output = document.getElementById('valuationOutput');
if (isNaN(price) || price <= 0) {
alert('Please enter a valid purchase price.');
return;
}
if (isNaN(age) || age < 0) {
alert('Please enter a valid age (use 0 for brand new).');
return;
}
if (isNaN(mileage) || mileage 0) {
// First year drop is usually steeper
currentValue = currentValue * 0.80;
// Subsequent years
if (age > 1) {
for (var i = 1; i 0) {
currentValue -= (mileageDifference * 0.12);
} else {
// Benefit for low mileage, capped at 10% bonus
var lowMileageBonus = Math.abs(mileageDifference) * 0.05;
if (lowMileageBonus > (price * 0.10)) lowMileageBonus = price * 0.10;
currentValue += lowMileageBonus;
}
// Condition Multipliers
var conditionMultiplier = 1.0;
if (condition === "excellent") conditionMultiplier = 1.05;
if (condition === "fair") conditionMultiplier = 0.85;
if (condition === "poor") conditionMultiplier = 0.65;
currentValue = currentValue * conditionMultiplier;
// Floor the value at scrap price (roughly 500 bucks or 2% of original)
var floorPrice = price * 0.02;
if (currentValue < floorPrice) currentValue = floorPrice;
if (currentValue < 500) currentValue = 500;
var totalLoss = price – currentValue;
var lossPercentage = (totalLoss / price) * 100;
resultDiv.style.display = 'block';
output.innerHTML =
"Estimated Market Value:$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" +
"Total Depreciation Loss:-$" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" +
"Overall Value Retained: " + (100 – lossPercentage).toFixed(1) + "%" +
"*Disclaimer: This is an estimate based on market averages. Local demand, specific trim levels, and accident history can significantly impact actual trade-in or private sale values.";
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}