Pmi Interest Rate Calculator

Car Depreciation Calculator

Standard Sedan / Economy (15% avg/yr) Luxury Vehicle (22% avg/yr) Truck / SUV (12% avg/yr) Electric Vehicle (18% avg/yr)

Estimation Results

Estimated Current Value: $0

Total Value Lost: $0

This estimate assumes standard mileage (approx. 12,000 – 15,000 miles per year) and good maintenance condition.

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseInt(document.getElementById('carAge').value); var rate = parseFloat(document.getElementById('vehicleType').value); var resultDiv = document.getElementById('depreciationResult'); if (isNaN(price) || isNaN(age) || price <= 0 || age = 1) { // Year 1 hit (approx 20% flat for new cars) currentValue = price * 0.80; // Subsequent years calculation for (var i = 1; i < age; i++) { currentValue = currentValue * (1 – rate); } } var totalDepreciation = price – currentValue; document.getElementById('currentVal').innerHTML = "$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalLost').innerHTML = "$" + totalDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); resultDiv.style.display = "block"; }

Understanding Car Depreciation

Car depreciation is the difference between the amount you spent when you bought your vehicle and the amount you can get for it when you sell or trade it in. For most consumers, depreciation is the single largest expense of owning a new vehicle, often exceeding the cost of fuel, insurance, or maintenance.

How Car Depreciation Works

A new car typically loses about 20% of its value within the first year. After the first year, depreciation usually slows down to roughly 10% to 15% per year, depending on the make, model, and market demand. By the time a car is five years old, it has often lost 60% or more of its initial sticker price.

Key Factors Influencing Your Car's Value

• Mileage: The more you drive, the faster the value drops. High mileage suggests more wear and tear on the engine and suspension.
• Vehicle Type: Trucks and SUVs often hold their value better than luxury sedans or discontinued models.
• Condition: Scratches, dents, interior stains, and mechanical issues significantly reduce resale value.
• Brand Reputation: Brands known for reliability (like Toyota or Honda) typically depreciate slower than brands with higher maintenance costs.

Example Calculation

Imagine you purchased a luxury sedan for $55,000. Using the typical luxury depreciation rate of 22%:

• Year 1 (Initial Drop): $55,000 – 20% = $44,000
• Year 2 (Annual Rate): $44,000 – 22% = $34,320
• Year 3 (Annual Rate): $34,320 – 22% = $26,769

In just three years, a $55,000 investment could decrease to an estimated $26,769, representing a total loss of over $28,000.

Tips to Minimize Depreciation

While you cannot stop depreciation, you can slow it down. Keep detailed service records to prove the car was well-maintained. Opt for popular colors (like silver, white, or black) which are easier to resell, and try to keep your annual mileage under 12,000 miles to maintain "clean" status in valuation guides.