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Quick answer
- check_circleA new car loses 20–30% in year 1, then 15–20% per year after that. After 5 years, most cars are worth 37–50% of their original price.
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1. Car depreciation chart by year
| Year | Remaining Value | Value (from $30,000) | Lost This Year |
|---|---|---|---|
| New (purchase) | 100% | $30,000 | — |
| Year 1 | 80% | $24,000 | $6,000 |
| Year 2 | 66% | $19,200 | $4,800 |
| Year 3 | 55% | $15,360 | $3,840 |
| Year 5 | 40% | $9,830 | $2,458 |
| Year 10 | 17% | $3,221 | — |
2. Which cars hold their value best in 2026?
| Vehicle | 5-Year Retained Value | Category |
|---|---|---|
| Toyota Tacoma | ~67% | Pickup truck |
| Jeep Wrangler | ~63% | SUV/Off-road |
| Toyota 4Runner | ~62% | SUV |
| Subaru Outback | ~52% | Crossover |
| Honda CR-V | ~51% | Crossover |
Do cars depreciate faster in the first year?expand_more
Yes. The moment a new car leaves the dealership it loses 10–15% immediately. By end of year one, total depreciation is typically 20–30%. Buying a 1–2 year old used car avoids this initial drop.
Does high mileage increase depreciation?expand_more
Yes. The standard assumption is 12,000–15,000 miles per year. Each 10,000 miles above average typically reduces resale value by $500–$1,500.