Find out how much your car has lost in value based on what you paid for it, how old it is, and how quickly it depreciates each year.
Depreciation is how much value your car loses over time. As soon as you buy a car, its value starts to drop, even if it is brand new. This happens as the car ages, gains mileage, and eventually wears down. It is not bad, it is just part of car ownership.
You can think of depreciation as a silent cost. You will not see it as a monthly charge, but it still affects your finances, mainly when you sell or trade-in your car later.
Cars usually lose the most value in the first few years. Here is a rough idea of what you can expect:
The above depends on the brand, model, how you drive, and how well you maintain it.
We are using a simple method in this car depreciation calculator which is: straight-line depreciation. Input the original price, your car's age, and the estimated annual depreciation rate. We apply the same percentage loss each year and show you the final result.
Here is the formula to calculate car depreciation
Formula: Value = Purchase Price × (1 - Depreciation Rate)^Years
For example:
Let's say you bought a car at the price $30000 and, you expect it to lose 15% of its value every year. After 3 years the value will be: $30,000 × (1 - 0.15)³ = $19,384. That's a $10,616 drop in value over 3 years.
Most new cars drop in value quickly. On average, they lose about 15 to 20 percent of their original price in the first year alone. After that, you can expect them to lose around 10 to 15 percent each year.
Both age and mileage affect a car's value, but mileage tends to have a bigger impact. The more miles a car has, the faster it loses value even if it's not very old.
Yes, you can. The best way to slow down depreciation is to take good care of your car — stick to regular maintenance, avoid accidents, drive fewer miles when possible, and choose a reliable model from the start.
Some older electric vehicles lost value quickly, primarily due to concerns about battery life and limited range. However, newer models, especially Teslas and well-known hybrids, hold their value much better thanks to improved technology and stronger demand in the used car market.