10% (Low – High Resale Value)
15% (Average/Standard)
20% (High – Luxury/Electric)
25% (Extreme – High Mileage)
Estimation Results
Estimated Current Value:
Total Value Lost:
Retained Value Percentage:
How Car Depreciation Works
Car depreciation is the difference between the amount you spent on a vehicle and the amount you can get for it when you sell or trade it in. Most new cars lose 15% to 20% of their value in the first year and roughly 15% each year thereafter.
Factors Influencing Vehicle Value
1. Mileage
The more miles on the odometer, the lower the value. High mileage signals wear and tear on engine components.
2. Brand Reputation
Brands like Toyota and Honda typically depreciate slower than luxury European brands like BMW or Mercedes-Benz.
3. Condition
Both mechanical health and cosmetic appearance (dents, scratches, interior stains) play a massive role.
4. Fuel Efficiency
In periods of high gas prices, fuel-efficient hybrids often hold their value better than heavy SUVs.
Example Calculation
If you purchase a car for $30,000 and it depreciates at a standard rate of 15% per year, after 3 years the value is calculated as:
Year 1: $30,000 × 0.85 = $25,500
Year 2: $25,500 × 0.85 = $21,675
Year 3: $21,675 × 0.85 = $18,423
Total depreciation over 3 years would be $11,577.
function calculateDepreciation() {
var price = document.getElementById("purchasePrice").value;
var age = document.getElementById("carAge").value;
var rate = document.getElementById("depreciationRate").value;
if (price === "" || age === "" || price <= 0 || age < 0) {
alert("Please enter valid positive numbers for price and age.");
return;
}
var purchasePrice = parseFloat(price);
var carAge = parseInt(age);
var annualRate = parseFloat(rate) / 100;
// Formula: Current Value = Purchase Price * (1 – r)^t
var currentValue = purchasePrice * Math.pow((1 – annualRate), carAge);
var totalLost = purchasePrice – currentValue;
var retainedPercent = (currentValue / purchasePrice) * 100;
// Format as currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById("currentValue").innerHTML = formatter.format(currentValue);
document.getElementById("totalLost").innerHTML = formatter.format(totalLost);
document.getElementById("retainedPercent").innerHTML = retainedPercent.toFixed(1) + "%";
document.getElementById("resultBox").style.display = "block";
// Smooth scroll to results
document.getElementById("resultBox").scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}