Car Depreciation Calculator

How Much Is Your Car Worth?

Depreciation is the largest cost of car ownership — larger than fuel, insurance, or maintenance combined. A new car loses approximately 20% of its value in year one and 15% per year for the next four years. After 5 years, a typical car retains only 35–40% of its original value. After 10 years, roughly 15–25%.

Our calculator estimates your vehicle's current value and projects future depreciation based on original purchase price, age, mileage, and condition. It also shows the total cost of depreciation — the difference between what you paid and what the car is worth today.

The depreciation curve: Year 1: -20%. Year 2: -15%. Year 3: -13%. Year 4: -12%. Year 5: -11%. Years 6+: 5–8% per year. A $35,000 car is worth approximately $28,000 after 1 year, $23,800 after 2 years, $20,700 after 3 years, $18,200 after 4 years, and $16,200 after 5 years.

Factors That Accelerate or Slow Depreciation

Brand and model reputation. Toyota, Honda, Porsche, and Jeep Wrangler consistently show the lowest depreciation. Luxury sedans (BMW 7-Series, Mercedes S-Class, Jaguar) and some EVs with rapidly evolving technology depreciate fastest. Trucks and SUVs generally hold value better than sedans.

Mileage. The average American drives 12,000–15,000 miles/year. Cars with below-average mileage for their age retain more value. Cars significantly above average (20,000+ miles/year) depreciate faster. However, extremely low mileage on an older car can also raise concerns about sitting damage.

Condition and maintenance history. A well-maintained vehicle with complete service records commands 10–15% more than an identical vehicle without documentation. Body damage, interior wear, and mechanical issues all accelerate depreciation beyond the standard curve.

Market forces. Gas prices affect truck and SUV values (high gas = lower truck values). New model redesigns can decrease previous-generation values. Supply shortages (as seen during 2021–2023) can temporarily inflate used car values above normal curves.

Color. Neutral colors (white, black, gray, silver) hold value best because they appeal to the widest buyer pool. Unusual colors (bright yellow, purple, orange) can depress resale by 5–10% because they limit the buyer market.

The Financial Case for Buying Used

The steepest depreciation happens in years 1–3. Buying a 2–3 year old vehicle lets the original owner absorb that 35–40% loss while you get a relatively new car with modern features and remaining warranty coverage.

A 3-year-old certified pre-owned vehicle typically costs 35–40% less than new while having 60–70% of its useful life remaining. This represents the optimal value proposition in the car market — and why financial advisors consistently recommend buying used over new for cost-conscious buyers.

Certified Pre-Owned (CPO) programs from manufacturers extend the warranty and include multi-point inspections. The premium over a regular used car (5–10%) is usually worth the warranty coverage and peace of mind.