Wood Fence Cost Calculator

Standard Sedan/SUV (15% avg. loss) Luxury Vehicle (20% avg. loss) Pickup Truck / Reliable Workhorse (12% avg. loss) Electric Vehicle (18% avg. loss)

Excellent (Low Mileage) Average (Standard Wear) Poor (High Mileage/Visible Wear)

function calculateDepreciation() { var price = parseFloat(document.getElementById("purchasePrice").value); var age = parseFloat(document.getElementById("carAge").value); var type = document.getElementById("vehicleType").value; var condition = document.getElementById("condition").value; var resultsDiv = document.getElementById("results"); if (isNaN(price) || isNaN(age) || price <= 0 || age 0) if (age > 0) { currentValue = currentValue * 0.92; } var totalLoss = price – currentValue; var percentageRetained = (currentValue / price) * 100; document.getElementById("currentValueDisplay").innerText = "$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalLossDisplay").innerText = "$" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("percentageDisplay").innerText = percentageRetained.toFixed(1) + "%"; resultsDiv.style.display = "block"; }

Understanding Car Depreciation: Why Your Vehicle Loses Value

Car depreciation is the difference between the amount you paid for your vehicle and its current market value. For most consumers, depreciation is the single largest "hidden" cost of car ownership, often exceeding fuel, insurance, or maintenance costs over the first five years.

The 20/15 Rule of Thumb

Automotive experts generally agree on a standard depreciation curve. Most brand-new cars lose approximately 20% of their value in the first year. Following that, vehicles typically depreciate at a rate of 15% per year until they reach about 10 years of age, at which point the value plateaus based on utility and condition.

Factors That Influence Your Car's Resale Value

• Brand Reputation: Brands known for reliability (like Toyota or Honda) tend to hold their value significantly better than luxury brands with high maintenance costs.
• Mileage: The average driver covers 12,000 to 15,000 miles per year. Exceeding this "normal" range accelerates depreciation rapidly.
• Vehicle Class: Full-size pickup trucks often retain more value because they are viewed as tools, whereas high-end luxury sedans depreciate faster as technology becomes dated.
• Market Trends: The shift toward Electric Vehicles (EVs) or sudden spikes in gas prices can temporarily shift the depreciation rates of SUVs vs. hybrids.

How to Minimize Vehicle Depreciation

While you cannot stop depreciation, you can mitigate its effects through smart ownership habits:

1. Buy Used: By purchasing a 2-3 year old vehicle, you let the previous owner take the massive 30-40% "initial hit."
2. Maintain Detailed Records: A car with a fully documented service history can command a 10-15% premium over one with no records.
3. Choose Popular Colors: Neutral colors like white, black, and silver are easier to resell than "statement" colors like neon green or bright orange.
4. Keep Mileage in Check: Limit unnecessary long-distance trips if you plan on trading the car in within 3 years.

Real-World Depreciation Examples

Vehicle Type	Initial Price	Value After 3 Years	Retention %
Standard SUV	$40,000	$24,500	61%
Luxury Sedan	$65,000	$33,800	52%
Reliable Truck	$50,000	$35,500	71%