Car Depreciation Calculator
Economy / Sedan (Lower Depreciation)
SUV / Crossover (Average)
Luxury Vehicle (Higher Depreciation)
Electric Vehicle (Rapid Tech Change)
Pickup Truck (Best Value Retention)
Estimated Current Market Value:
Total Value Lost:
Percentage of Value Retained:
How Car Depreciation Works
Depreciation is the difference between the amount you spent when you bought your car and the amount you get back when you sell or trade it in. It is typically the largest expense associated with owning a new vehicle, often exceeding the costs of fuel, insurance, or maintenance.
The "Drive-Off" Effect
A new car loses a significant portion of its value the moment it leaves the dealership lot. On average, a new vehicle loses approximately 10% to 15% of its value immediately. By the end of the first year, a car may have lost up to 20% of its initial purchase price.
Key Factors Influencing Your Car's Resale Value
- Mileage: The more you drive, the lower the value. Average annual mileage is considered to be around 12,000 to 15,000 miles. Exceeding this significantly increases wear and tear in the eyes of buyers.
- Vehicle Type: Trucks and specialized SUVs tend to hold their value better than luxury sedans or electric vehicles with aging battery technology.
- Condition: Mechanical health and cosmetic appearance are vital. A well-documented service history can add thousands to your resale price.
- Number of Owners: Generally, vehicles with a single owner command a higher price than those that have changed hands multiple times.
Example Calculation
If you purchase a luxury SUV for $60,000 and it depreciates at an average rate of 15% per year, after 3 years the value would be calculated as:
Year 1: $60,000 – 15% = $51,000
Year 2: $51,000 – 15% = $43,350
Year 3: $43,350 – 15% = $36,847
In this scenario, you have lost over $23,000 in value simply through ownership and time.