Car Depreciation Calculator
Estimate the future resale value of your vehicle based on market trends.
Excellent (Showroom quality)
Good (Minor wear)
Fair (Visible scratches/wear)
Poor (Mechanical issues)
Sedan (Average)
SUV/Truck (Holds value well)
Luxury (High depreciation)
Electric (Rapidly evolving)
1 Owner
2 Owners
3+ Owners
Estimated Resale Value:
$0.00
Total Value Lost:
$0.00
Percentage Retained:
0%
Understanding Car Depreciation
Car depreciation is the difference between the amount you spent when you bought your vehicle and the amount you can get when you sell or trade it in. For most consumers, depreciation is the single largest cost of owning a vehicle, often exceeding the costs of fuel, insurance, and maintenance combined.
How Does the Calculation Work?
Our calculator uses a diminishing balance method combined with specific market modifiers. Most vehicles lose 15% to 20% of their value in the first year and roughly 15% each year thereafter. However, several factors can accelerate or slow this process:
- Mileage: The average driver covers 12,000 to 15,000 miles per year. Exceeding this significantly lowers your car's value.
- Condition: A well-maintained vehicle with a clean service history fetches a premium on the used market.
- Brand and Type: Historically, SUVs and trucks retain value better than luxury sedans or discontinued models.
Example Scenario:
If you buy a new SUV for $40,000 and keep it for 3 years with "Good" condition and average mileage, it typically retains about 60-65% of its value.
Calculated Result: You might expect a resale value of approximately $25,400, meaning the car "cost" you $14,600 in depreciation alone.
If you buy a new SUV for $40,000 and keep it for 3 years with "Good" condition and average mileage, it typically retains about 60-65% of its value.
Calculated Result: You might expect a resale value of approximately $25,400, meaning the car "cost" you $14,600 in depreciation alone.
Tips to Minimize Depreciation
While you cannot stop depreciation, you can minimize its impact by following these strategies:
- Buy Slightly Used: The steepest drop in value happens the moment you drive a new car off the lot. Buying a 2-3 year old vehicle lets the first owner take the biggest financial hit.
- Keep Maintenance Records: A physical or digital folder of every oil change and repair proves to the next buyer that the car was cared for.
- Limit Customization: While you might love a custom neon wrap or an aftermarket spoiler, these often decrease the pool of potential buyers and lower the value.
- Choose Neutral Colors: White, black, and silver remain the most popular colors on the used market and are easier to resell than bright orange or purple.