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Economy/Sedan (Standard) SUV / Truck (Holds value better) Luxury Vehicle (Fast depreciation) Electric Vehicle (Early tech curve)

Estimated Vehicle Valuation

Estimated Current Value:

Total Depreciation:

Percentage Value Retained:

function calculateDepreciation() { var price = parseFloat(document.getElementById("purchasePrice").value); var age = parseFloat(document.getElementById("ageOfCar").value); var rate = parseFloat(document.getElementById("vehicleType").value); var mileage = parseFloat(document.getElementById("annualMileage").value); if (isNaN(price) || isNaN(age) || isNaN(mileage) || price <= 0 || age = 1) { // Year 1 hit remainingValue = price * 0.80; // Subsequent years compound depreciation if (age > 1) { remainingValue = remainingValue * Math.pow((1 – rate), (age – 1)); } } else if (age > 0 && age standardMileage && age > 0) { var excessMiles = (mileage * age) – standardMileage; var penaltyPercent = (excessMiles / 2000) * 0.01; remainingValue = remainingValue * (1 – penaltyPercent); } // Minimum floor (scrap value) if (remainingValue < price * 0.1) { remainingValue = price * 0.1; } var totalLoss = price – remainingValue; var pctRetained = (remainingValue / price) * 100; document.getElementById("currentValue").innerText = "$" + remainingValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalDepreciation").innerText = "$" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("percentageRetained").innerText = pctRetained.toFixed(1) + "%"; document.getElementById("resultArea").style.display = "block"; }

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How Car Depreciation Works

Car depreciation is the difference between the amount you spent on a vehicle and the amount you get back when you sell or trade it in. It is generally the single largest cost of owning a new vehicle, often exceeding fuel, insurance, or maintenance costs. Most new cars lose roughly 20% of their value in the first year alone.

Key Factors Influencing Your Car's Resale Value

• The First Year Hit: The moment you drive a new car off the lot, it transitions from "new" to "used," resulting in an immediate drop in market value.
• Mileage: Vehicles are mechanical assets with a finite lifespan. High mileage suggests more wear and tear on the engine and transmission, leading to faster depreciation.
• Vehicle Segment: Luxury cars often depreciate faster than economy cars because the secondary market for expensive out-of-warranty repairs is smaller. Conversely, trucks and SUVs currently hold their value better due to high market demand.
• Condition and History: A well-documented service history and a clean accident report (Carfax/AutoCheck) are critical for maintaining value.

Realistic Example of Depreciation

If you purchase a mid-sized sedan for $30,000:

• After 1 Minute: Value drops to roughly $27,000 (90%).
• After 1 Year: Value drops to roughly $24,000 (80%).
• After 5 Years: Value typically sits around $12,000 – $15,000 (40-50%).

Tips to Minimize Vehicle Value Loss

While you cannot stop depreciation entirely, you can slow it down. First, consider buying a "near-new" used vehicle (2-3 years old) to let the previous owner take the initial 30-40% depreciation hit. Second, keep your mileage within the national average of 12,000 to 15,000 miles per year. Finally, choose popular colors (white, black, silver) and maintain a meticulous service record to make the car more attractive to future buyers.

Why Use Our Depreciation Calculator?

Our tool uses industry-standard decay curves adjusted for specific vehicle types and mileage penalties. Whether you are planning to trade in your vehicle for a new model or simply managing your personal balance sheet, knowing the future value of your car helps you make smarter financial decisions regarding insurance coverage and selling timelines.