Car Depreciation Calculator
Sedan (Standard)
SUV / Crossover
Luxury Vehicle
Pickup Truck
Electric Vehicle (EV)
Estimated Current Market Value
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Total Depreciation
$0
Percentage Lost
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How Car Depreciation Works
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. It is typically the single largest expense of owning a new car, often exceeding insurance, fuel, and maintenance costs combined.
Most new cars lose approximately 20% of their value in the first year alone. After the first year, depreciation typically settles into a rate of 10% to 15% per year, depending on the make, model, and market conditions.
Key Factors Influencing Your Car's Value
- Mileage: The more miles on the odometer, the lower the value. Average driving is considered 12,000 to 15,000 miles per year. Exceeding this triggers faster depreciation.
- Vehicle Class: Pickup trucks and SUVs tend to hold their value better than luxury sedans or electric vehicles, which may see faster technological obsolescence.
- Condition: Mechanical health and aesthetic condition (paint, interior) play a vital role in resale value.
- Ownership History: A single-owner vehicle with a full service record is worth significantly more than a multi-owner vehicle with no history.
Realistic Example:
If you purchase a Toyota Tacoma (Pickup Truck) for $40,000, it might only lose 8% per year after the initial 15% drop. After 3 years, it might still be worth $28,500.
Conversely, a Luxury BMW 7 Series costing $90,000 could lose 25% in year one and 15% annually thereafter, leaving it worth only $50,000 after 3 years.
If you purchase a Toyota Tacoma (Pickup Truck) for $40,000, it might only lose 8% per year after the initial 15% drop. After 3 years, it might still be worth $28,500.
Conversely, a Luxury BMW 7 Series costing $90,000 could lose 25% in year one and 15% annually thereafter, leaving it worth only $50,000 after 3 years.
How to Minimize Depreciation
While you cannot stop depreciation, you can slow it down. Choosing "evergreen" colors like white, black, or silver makes the car easier to sell. Keeping meticulous maintenance records and parking in a garage to protect the exterior finish can also add thousands to your trade-in value when the time comes.
Frequently Asked Questions
Which car brand depreciates the least?
Historically, brands like Toyota, Honda, and Porsche have some of the highest resale values in the automotive industry.
Does mileage matter more than age?
Both are critical, but high mileage usually suggests more wear and tear on mechanical components, which can scare off buyers more than the age of the vehicle itself.