Calculate Loan Payments in Months

Car Depreciation Calculator

Estimated Valuation

Estimated Market Value: $0.00

Total Depreciation: $0.00

Value Retained: 0%

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('carAge').value); var type = document.getElementById('vehicleType').value; var mileage = parseFloat(document.getElementById('annualMileage').value); if (isNaN(price) || isNaN(age) || isNaN(mileage) || price = 1) { currentValue = price * (1 – firstYearDrop); // Subsequence years for (var i = 1; i 0) { // Pro-rated first year currentValue = price * (1 – (firstYearDrop * age)); } // Mileage adjustment (standard is 12000 miles/year) var expectedMileage = age * 12000; var actualMileage = age * mileage; var mileageDiff = actualMileage – expectedMileage; // Adjust value by 1% for every 10,000 miles over/under average var mileageAdjustment = (mileageDiff / 10000) * 0.01; currentValue = currentValue * (1 – mileageAdjustment); // Ensure value doesn't drop below 5% (scrap value) if (currentValue < (price * 0.05)) currentValue = price * 0.05; var totalLoss = price – currentValue; var percentRetained = (currentValue / price) * 100; document.getElementById('resCurrentValue').innerText = "$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalLoss').innerText = "$" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resPercentage').innerText = percentRetained.toFixed(1) + "%"; document.getElementById('resultsArea').style.display = "block"; }

Understanding Car Depreciation

Car depreciation is the difference between the price you paid for your vehicle and what it is worth today. Most cars lose value the moment they are driven off the lot, and understanding this decline is vital for calculating your total cost of ownership or planning a future trade-in.

Key Factors Affecting Resale Value

• Age: Generally, a new car loses 20% of its value in the first year and 15% each year thereafter.
• Mileage: Higher mileage indicates more wear and tear. Standard annual mileage is considered to be around 12,000 to 15,000 miles.
• Vehicle Class: Luxury vehicles often depreciate faster because the high maintenance costs make them less desirable to second-hand buyers. Trucks and SUVs tend to hold their value better due to durability and demand.
• Fuel Technology: Electric Vehicles (EVs) have historically seen steeper depreciation curves due to rapid advancements in battery technology, though this is stabilizing.

Example Calculation

Imagine you purchased a brand-new Sedan for $40,000. Here is a typical depreciation schedule:

Year	Estimated Value	Total Loss
Year 1 (20% Drop)	$32,000	$8,000
Year 3 (15% YoY)	$23,120	$16,880
Year 5 (15% YoY)	$16,712	$23,288

How to Minimize Depreciation

While you cannot stop depreciation entirely, you can slow it down. Maintain a detailed service history, keep the interior clean, and park in a garage to protect the exterior finish. Choosing a vehicle with high reliability ratings and a neutral color (like white, silver, or black) also helps maintain a higher resale value.