Car Depreciation Calculator
Calculate how your car's value decreases over time. Estimate future vehicle worth for trade-ins, sales, and understanding true ownership costs.
How to Use This Calculator
Understand how your car's value changes over time with our depreciation calculator:
- Enter the original purchase price or current value of the vehicle.
- Input the vehicle's age in years or select a depreciation timeline.
- Choose the depreciation rate - standard is 15-20% per year, luxury vehicles depreciate faster.
- Click 'Calculate' to see projected values over time.
Why This Matters
The average new car loses 20% of its value in the first year and about 60% over five years. Understanding depreciation helps you make smarter buying decisions - sometimes a 2-3 year old car offers much better value than buying new. Depreciation also matters for insurance, trade-ins, and knowing when to sell before major value drops. For those considering leasing vs buying, depreciation is the hidden cost that makes the difference.
- Make informed decisions about buying new vs used vehicles
- Understand the true cost of ownership over time
- Time your sale or trade-in for maximum value
- Compare depreciation rates between different vehicle types
- Calculate equity in your vehicle for loan or trade decisions
Worked Examples
New Car First Year
You buy a $35,000 new car. How much value does it lose in year one?
Five-Year Projection
A $45,000 SUV with standard 15% annual depreciation after year one.
Used Car Value
Considering a 3-year-old luxury sedan originally $60,000, now listed at $32,000.
Common Mistakes to Avoid
- Assuming all cars depreciate equally - luxury cars, EVs, and certain brands hold value differently.
- Forgetting that mileage affects value independently of age - high-mileage cars depreciate faster.
- Not considering that some models hold value exceptionally well (Toyotas, Porsches) vs others.
- Ignoring condition factors - accidents, maintenance history, and wear significantly impact value.
- Using new car prices for used car calculations without adjusting for initial depreciation hit.