Car Depreciation Calculator
Excellent (Showroom quality)
Good (Minor wear)
Fair (Visible scratches/dings)
Poor (Mechanical/Body issues)
Understanding Car Depreciation
Car depreciation is the difference between the amount you paid for your vehicle and what it is worth when you decide to sell or trade it in. For most car owners, depreciation is actually the single largest expense of owning a vehicle—often costing more than fuel, insurance, or maintenance.
How We Calculate Your Car's Value
This calculator uses industry-standard depreciation curves combined with mileage and condition adjustments to provide an estimate:
- The "Drive-Off" Effect: Most new cars lose 15-20% of their value in the first year alone.
- The Yearly Slide: After the first year, cars typically lose about 10-15% of their remaining value annually.
- The Mileage Penalty: The average driver covers 12,000 to 15,000 miles per year. If your mileage exceeds these averages, the calculator applies a penalty of approximately $0.15 per excess mile.
- Condition Factor: Physical and mechanical condition can swing the value by as much as 30% in either direction.
Example Calculation:
If you bought a SUV for $40,000 and kept it for 3 years with 36,000 miles (standard use) and kept it in Good condition:
– Year 1 Value: $32,000 (20% loss)
– Year 2 Value: $27,200 (15% loss)
– Year 3 Value: $23,120 (15% loss)
– Condition adjustment (Good): ~$21,964
If you bought a SUV for $40,000 and kept it for 3 years with 36,000 miles (standard use) and kept it in Good condition:
– Year 1 Value: $32,000 (20% loss)
– Year 2 Value: $27,200 (15% loss)
– Year 3 Value: $23,120 (15% loss)
– Condition adjustment (Good): ~$21,964
Tips to Minimize Depreciation
While you can't stop depreciation entirely, you can slow it down. Choosing brands known for reliability (like Toyota or Honda), keeping meticulous service records, and maintaining a low annual mileage will ensure you get the best possible price when it comes time to sell.