Estimate the future resale value of your vehicle based on market trends.
Sedan / Hatchback (Average)
SUV / Truck (Holds value better)
Luxury Vehicle (Fast depreciation)
Electric Vehicle (High Demand/Incentives)
Estimated Resale Value:
Total Depreciation Loss:
Average Yearly Loss:
Value Retained (%):
How Car Depreciation Works
Car depreciation is the difference between the amount you paid for your vehicle and what it's worth when you sell or trade it in. It is often the single largest expense of owning a car, yet it is rarely discussed because it isn't an "out-of-pocket" monthly bill.
On average, a new car loses about 20% of its value in the first year and roughly 15% each year thereafter. By the time a car is five years old, it is generally worth only about 40% of its original purchase price.
Key Factors Influencing Your Car's Resale Value
Mileage: The more you drive, the faster the value drops. High mileage suggests more wear and tear on the engine and suspension.
Brand Reputation: Brands like Toyota and Honda typically have lower depreciation rates due to their perceived reliability.
Condition: Scratches, interior stains, or a lack of maintenance records can significantly lower the trade-in value.
Fuel Economy & Tech: As gas prices rise, fuel-efficient vehicles hold value better. Similarly, cars with outdated technology suites lose value faster.
Example Calculation
If you purchase a luxury sedan for $50,000:
Year
Value Loss
Remaining Value
Year 1 (20%)
$10,000
$40,000
Year 2 (15%)
$6,000
$34,000
Year 3 (15%)
$5,100
$28,900
Tips to Minimize Depreciation
To keep your car's value as high as possible, consider buying "slightly used" (2-3 years old) to let the first owner take the biggest depreciation hit. Additionally, keep detailed maintenance records, park in a garage to protect the paint, and keep the mileage below the national average of 12,000 to 15,000 miles per year.
function calculateCarDepreciation() {
var price = parseFloat(document.getElementById('purchasePrice').value);
var currentAge = parseFloat(document.getElementById('carAge').value);
var holdPeriod = parseFloat(document.getElementById('ownershipYears').value);
var annualRate = parseFloat(document.getElementById('vehicleType').value);
if (isNaN(price) || isNaN(currentAge) || isNaN(holdPeriod) || price <= 0) {
alert("Please enter valid numbers for price and duration.");
return;
}
var currentValue = price;
// Apply initial first-year drop if the car is currently new (0 years old)
// or simulate the remaining curve if it's already used.
// Logic: First year 20% (or annualRate + 5%), subsequent years = annualRate
var firstYearRate = annualRate + 0.05;
var totalYearsToSimulate = currentAge + holdPeriod;
var runningValue = price;
for (var i = 1; i 0) {
for (var j = 1; j <= currentAge; j++) {
var rateJ = (j === 1) ? firstYearRate : annualRate;
valueNow = valueNow * (1 – rateJ);
}
}
// Value after holding
var valueFuture = valueNow;
for (var k = 1; k <= holdPeriod; k++) {
var actualYear = currentAge + k;
var rateK = (actualYear === 1) ? firstYearRate : annualRate;
valueFuture = valueFuture * (1 – rateK);
}
var totalLoss = valueNow – valueFuture;
var avgYearlyLoss = totalLoss / holdPeriod;
var percentRetained = (valueFuture / valueNow) * 100;
// Display Results
document.getElementById('finalValue').innerHTML = "$" + valueFuture.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalLoss').innerHTML = "$" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('yearlyLoss').innerHTML = "$" + avgYearlyLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('percentRetained').innerHTML = percentRetained.toFixed(1) + "%";
document.getElementById('dep-calc-result').style.display = 'block';
}