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Car Depreciation Calculator

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

Estimation Results

Estimated Current Value: $0

Total Depreciation: $0

Value Retained: 0%

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var years = parseFloat(document.getElementById('carAge').value); var annualMileage = parseFloat(document.getElementById('annualMileage').value); var baseRate = parseFloat(document.getElementById('carType').value); if (isNaN(price) || isNaN(years) || isNaN(annualMileage)) { alert("Please enter valid numbers in all fields."); return; } // Calculation Logic: // 1. Initial hit: 20% in the first year usually, then consistent decay // 2. Mileage adjustment: standard is 12,000. // Every 1,000 miles over 12k adds 0.5% to the annual depreciation rate var mileageAdjustment = 0; if (annualMileage > 12000) { mileageAdjustment = ((annualMileage – 12000) / 1000) * 0.005; } var effectiveRate = baseRate + mileageAdjustment; // Formula: Value = Price * (1 – rate)^years var calculatedValue = price * Math.pow((1 – effectiveRate), years); // Ensure value doesn't drop below 5% of original (scrap value) if (calculatedValue < (price * 0.05)) { calculatedValue = price * 0.05; } var totalDepreciation = price – calculatedValue; var retainedPercent = (calculatedValue / price) * 100; document.getElementById('currentValue').innerText = "$" + calculatedValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalLost').innerText = "$" + totalDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('percentRetained').innerText = retainedPercent.toFixed(1) + "%"; document.getElementById('result-container').style.display = 'block'; }

Understanding Car Depreciation: How Much Is Your Vehicle Worth?

Car depreciation is the difference between the amount you paid for your vehicle and what it is worth today. For most car owners, depreciation is the single largest expense of vehicle ownership—often exceeding the costs of fuel, insurance, and maintenance combined.

How Car Depreciation Works

A new car typically loses about 20% of its value within the first 12 months. After the initial first-year drop, the rate of depreciation usually stabilizes to between 10% and 15% per year. By the five-year mark, many vehicles have lost roughly 60% of their original purchase price.

Key Factors Affecting Depreciation

• Mileage: The more you drive, the faster your car depreciates. Standard calculations assume 12,000 to 15,000 miles per year. Exceeding this "normal" range increases wear and tear, reducing resale value.
• Vehicle Type: SUVs and trucks generally hold their value better than luxury sedans. Luxury cars depreciate faster because high maintenance costs make them less attractive to second-hand buyers.
• Condition and History: A well-documented service history and a clean accident report (Carfax/AutoCheck) are essential for maintaining value.
• Brand Reputation: Brands known for reliability (like Toyota or Honda) typically see much lower depreciation rates than brands with perceived reliability issues.

Real-World Example Calculation

Imagine you purchased a Standard Sedan for $30,000. If you drive a standard 12,000 miles per year, here is what the math looks like after 3 years:

• Initial Price: $30,000
• Annual Depreciation Rate: 15%
• Year 1 Value: $25,500
• Year 2 Value: $21,675
• Year 3 Value: $18,423

In this scenario, the vehicle lost over $11,500 in just three years. Using our Car Depreciation Calculator above, you can input your specific vehicle type and mileage to get a more accurate estimate for your situation.

Tips to Minimize Depreciation

While you cannot stop depreciation entirely, you can slow it down. Consider purchasing a 2-3 year old used car to let the first owner take the biggest "value hit." Additionally, keeping your mileage low, performing regular maintenance, and choosing popular "neutral" colors (like white, silver, or black) can make your car easier to sell for a higher price later.