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Car Depreciation Calculator

Economy Sedan (12% avg) Standard SUV (15% avg) Luxury Vehicle (20% avg) Electric Vehicle (10% – Battery Adjusted) Commercial Truck (8% avg)

Excellent (Low Miles) Average Poor (High Wear)

Calculation Results

Estimated Resale Value: $0

Total Depreciation Loss: $0

Average Yearly Cost: $0

Retained Value: 0%

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Understanding Car Depreciation: How Much Is Your Car Actually Losing?

Depreciation is the single largest expense of car ownership, often exceeding fuel, insurance, or maintenance costs. From the moment you drive a new vehicle off the dealership lot, its market value begins to decline. This calculator helps you estimate the future trade-in or private-party value of your vehicle based on industry-standard decay rates.

Key Factors Influencing Vehicle Depreciation

While every car is different, several core factors determine how quickly your vehicle loses its value:

• Mileage: High mileage is the primary driver of value loss. Most buyers perceive a "cliff" every 30,000 miles.
• Brand Reliability: Brands known for longevity, such as Toyota and Honda, typically retain value much better than high-end luxury brands like BMW or Mercedes-Benz, which face high out-of-warranty repair costs.
• Market Demand: Currently, SUVs and trucks hold their value significantly better than sedans or coupes.
• The "New Car Smell" Drop: A new car can lose up to 20% of its value in the first 12 months alone.

Example Calculation: Economy vs. Luxury

Consider a $30,000 Economy Sedan. Over 5 years with a 12% annual depreciation rate, the car would be worth approximately $15,831. The owner loses roughly $2,833 per year in equity.

In contrast, a $60,000 Luxury SUV with a 20% annual depreciation rate would be worth only $19,660 after 5 years. The owner loses over $8,000 per year just by owning the vehicle.

How to Minimize Your Losses

To keep your car's resale value high, consider the following strategies:

1. Buy Slightly Used: Purchasing a 2-3 year old vehicle avoids the steepest part of the depreciation curve.
2. Keep Maintenance Records: A documented service history can increase private sale value by 10-15%.
3. Limit Customization: While you may love a custom paint job or aftermarket spoiler, these often decrease the pool of potential buyers and lower the value.