Free · Year-by-year estimate
Car Depreciation
Calculator
See how much your car loses in value every year — with resale values, total loss and a visual chart.
10-year value chart
Resale estimate
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Your car
Depreciation is the biggest hidden cost of owning a new car — often larger than fuel over 3–5 years.
Value over time
Value after
5 yrs
$11,120
Total loss
-$18,880
% retained
37%
| Year | Value | Loss / year |
|---|
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The first year hurts most
A new car loses 15–25% the moment you drive it off the lot. Buying 1–3 year old used cars avoids the steepest drop.
What holds value
Reliable, in-demand brands (Toyota, Lexus, Honda) and low-mileage, well-serviced cars depreciate slowest.
EVs are stabilizing
Early EVs depreciated fast on battery fears, but strong demand and better batteries now help many models retain value.
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FAQ
Depreciation FAQ
What is a typical car depreciation rate?
New cars lose 15–25% of value in the first year and roughly 10–15% per year after. Most cars retain only about 40–50% of their original price after 5 years.
Which cars depreciate the least?
Reliable, in-demand models with low running costs — typically Toyota, Lexus, Honda and some EVs now hold value better. Luxury and sports cars usually depreciate fastest.
Do electric cars depreciate faster?
It varies. Battery-tech uncertainty hurt early EVs, but strong demand and improving batteries now help many models retain value. Check real used prices for the model you want.
How is car depreciation calculated?
Each year the value drops by the depreciation rate applied to the previous year's value. After 5 years at 18%/year, a $30,000 car is worth about $30,000 × 0.82⁵ ≈ $11,120.
What is the biggest depreciation hit?
The first year. A new car loses 15–25% as soon as it is driven off the lot. Buying a 1–3 year old used car avoids the steepest part of the curve.
Does mileage affect depreciation?
Yes, along with condition and service history. Above-average mileage accelerates depreciation; a full maintenance record and clean condition slow it.
How do I know the real resale value?
Check current asking prices for the same make/model/year/mileage on used-car platforms. This calculator gives an estimate — real values vary by market.
Does depreciation matter if I keep the car for 10 years?
Less, because depreciation is front-loaded. Over 10+ years, running costs dominate; over 3–5 years, depreciation is usually your single biggest ownership cost.
Fuel cost→
Add running costs to the full ownership picture.
Lease vs buy→
Does leasing avoid depreciation? Compare.
EV vs petrol→
Total ownership costs, including resale.
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