Car Depreciation Calculator
Economy / Sedan
SUV / Pickup Truck
Luxury Vehicle
Electric Vehicle (EV)
Estimated Current Value:
$0
Total Depreciation:
$0
Percentage Lost:
0%
Understanding Car Depreciation: How Much Is Your Vehicle Worth?
Depreciation is the difference between the amount you spent when you bought your car and what you can get for it when you sell or trade it in. For most vehicle owners, depreciation is the single largest cost of ownership—often exceeding fuel, insurance, or maintenance expenses.
Key Factors That Influence Depreciation
- Vehicle Age: The moment you drive a new car off the lot, it can lose up to 10-20% of its value. By the end of the first year, a 20-30% drop is common.
- Mileage: High mileage suggests more wear and tear on the engine and suspension. Most calculators use 12,000 miles per year as the standard benchmark.
- Vehicle Type: Luxury cars often depreciate faster because their maintenance costs are higher for second-hand owners. Trucks and SUVs tend to hold their value better due to high demand and durability.
- Condition: Scratches, interior stains, and mechanical issues significantly reduce the resale price compared to "excellent" condition vehicles.
How to Use the Car Depreciation Calculator
To get an accurate estimate of your car's current market value, follow these steps:
- Purchase Price: Enter the total amount you paid (including taxes and fees).
- Age: Enter how many years you have owned the vehicle.
- Annual Mileage: Be honest about how many miles you drive per year, as this is a heavy weight in the calculation.
- Vehicle Category: Select the category that best fits your car, as depreciation curves vary significantly between a compact sedan and a high-end luxury SUV.
Example Calculation
Imagine you purchased a brand new SUV for $40,000. You've owned it for 3 years and drive approximately 15,000 miles per year.
- Year 1: Value drops by 15% (New Value: $34,000)
- Year 2 & 3: Value drops by 12% annually (New Value: ~$26,300)
- Mileage Penalty: Since you drove 9,000 miles over the standard 36,000-mile limit (3,000 extra per year), an additional adjustment is made.
- Final Estimated Value: Approximately $25,200.
Strategies to Minimize Depreciation
While you cannot stop depreciation entirely, you can slow it down. Maintain a full service history (stamped books or digital records), keep the mileage below average, and choose popular colors like silver, white, or black. Additionally, purchasing a 2-3 year old "Certified Pre-Owned" vehicle allows the first owner to take the largest depreciation hit, saving you thousands in the long run.