Used Car Value Estimator
Economy (Holds value well)
Standard / Mid-range
Luxury / High-end (Depreciates fast)
Trucks / Work Vehicles
Excellent (Mechanical & Cosmetic perfection)
Very Good (Minor wear, well maintained)
Good (Average wear for its age)
Fair (Noticeable mechanical or cosmetic issues)
Poor (Severe issues or high damage)
Estimated Resale Value
$0
How Car Value is Calculated
Understanding the market value of your vehicle is crucial whether you are planning to sell, trade-in, or purchase insurance. While Kelly Blue Book (KBB) remains the gold standard for valuation, the underlying math follows specific depreciation patterns common across the automotive industry.
Primary Factors Influencing Depreciation
- Age: On average, a new car loses about 20% of its value in the first year and roughly 10-15% every year after.
- Mileage: The benchmark for average driving is 12,000 to 15,000 miles per year. Exceeding this benchmark creates a "mileage penalty" as it suggests more wear on the drivetrain.
- Vehicle Class: Luxury vehicles often depreciate faster than economy cars or trucks because their repair costs are higher and their technology becomes obsolete more quickly.
- Condition: Only about 3% of used cars are considered "Excellent." Most vehicles fall into the "Good" or "Fair" categories due to normal wear and tear.
Example Calculation
Imagine a standard mid-range sedan purchased for $30,000. If the car is 3 years old with 36,000 miles (average) and in "Very Good" condition:
- Base Depreciation: After 3 years at a 15% annual rate, the value drops to roughly $18,400.
- Condition Adjustment: Being in "Very Good" condition might retain 90% of that residual value.
- Final Result: The estimated value would be approximately $16,560.
Tips to Maintain Resale Value
To ensure your car stays at the top of the KBB range, maintain detailed service records. Buyers and dealerships are willing to pay a premium for vehicles that have documented oil changes, brake services, and tire rotations. Additionally, keeping the interior free of odors and stains can significantly improve your condition rating during an appraisal.