Car Depreciation Calculator
Estimate what your car will be worth after a number of years, based on typical depreciation patterns.
Why the first year hits hardest
New cars typically lose around 20% of their value in the first year alone — driving off the lot converts a 'new' car into a 'used' one in the eyes of the market, which triggers a steep initial value drop regardless of actual condition or mileage. This calculator models that steeper first-year drop before switching to a more gradual annual rate.
After the first year, depreciation typically slows to a more gradual pace, commonly cited in the 10-18% range annually depending on the make, model, and reliability reputation — luxury brands and vehicles with historically poor reliability often depreciate faster than economy brands known for longevity.
Factors that affect depreciation beyond this estimate
Actual depreciation varies significantly by brand reputation, mileage, condition, local market demand, and broader economic factors like fuel prices (which can affect demand for larger vehicles) — this calculator provides a general estimate using typical industry patterns, not a precise valuation for your specific vehicle.
For an actual current value, tools that reference real transaction data for your specific make, model, mileage, and condition will be more accurate than a generalized depreciation curve like this one.
Frequently asked questions
Why do new cars lose so much value in the first year?
Once a car is purchased and driven, it's classified as 'used' regardless of condition or mileage, which causes a steep initial value drop — commonly around 20% in the first year alone, before depreciation slows to a more gradual pace.
Do all cars depreciate at the same rate?
No — depreciation rates vary significantly by brand, model, reliability reputation, and market demand. Luxury vehicles and less reliable models often depreciate faster than economy brands known for durability.