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Car Depreciation Calculator

Sedan / Standard SUV / Truck Luxury Vehicle Electric Vehicle (EV)

Estimated Valuation

Estimated Market Value: $0.00
Total Depreciation: $0.00
Value Retained: 0%

Understanding Car Depreciation

Car depreciation is the difference between the amount you spent on your vehicle and its current market value. Most brand-new cars lose approximately 15% to 20% of their value in the first year alone. By the end of year five, a typical car may only be worth 40% of its original sticker price.

Key Factors Influencing Your Car's Value

  • Mileage: The higher the odometer reading, the lower the value. Average drivers cover about 12,000 to 15,000 miles per year. Exceeding this increases wear and tear.
  • Vehicle Class: SUVs and Trucks typically hold their value better than luxury sedans or older electric vehicle models due to high demand and durability perceptions.
  • Condition & Maintenance: A documented service history and a clean exterior/interior can help retain thousands of dollars in resale value.

Example Depreciation Scenario

If you purchase a luxury sedan for $50,000 and drive it for 3 years at 12,000 miles per year, with a luxury depreciation rate of 20%:

  • Year 1: Value drops to $40,000 (20% loss)
  • Year 2: Value drops to $32,000 (20% loss of remaining value)
  • Year 3: Value drops to $25,600 (20% loss of remaining value)

In this scenario, you have "lost" $24,400 in wealth simply by owning and using the asset.

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('carAge').value); var rate = parseFloat(document.getElementById('vehicleType').value); var mileage = parseFloat(document.getElementById('annualMileage').value); var resultsDiv = document.getElementById('resultsArea'); if (isNaN(price) || price <= 0) { alert("Please enter a valid purchase price."); return; } if (isNaN(age) || age < 0) { age = 0; } if (isNaN(mileage) || mileage 12000) { mileageSurcharge = ((mileage – 12000) / 5000) * 0.01; } var adjustedRate = rate + mileageSurcharge; // Compound depreciation formula: Current Value = Price * (1 – Rate)^Years var calculatedValue = price * Math.pow((1 – adjustedRate), age); // Floor value at 10% of purchase price (scrap value/minimum) if (calculatedValue < (price * 0.10)) { calculatedValue = price * 0.10; } var totalLoss = price – calculatedValue; var retentionPercent = (calculatedValue / price) * 100; document.getElementById('currentValue').innerText = '$' + calculatedValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalLoss').innerText = '$' + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('percentRetained').innerText = retentionPercent.toFixed(1) + '%'; resultsDiv.style.display = 'block'; resultsDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

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