Car Depreciation Calculator
Visualize how your vehicle loses value over time. Compare depreciation curves for Economy, Luxury, and SUV classes to find the best time to sell.
About
A new car is often the second largest purchase a person makes, yet it is a depreciating asset that loses value the moment it leaves the lot. This Car Depreciation Calculator helps owners visualize the financial trajectory of their vehicle over a 10-year period.
Depreciation rates vary significantly by vehicle class. Luxury cars often plummet in value initially, while trucks and popular economy models may hold value better. Use this tool to estimate your car's future resale value and determine the "sweet spot" for selling or trading in.
Formulas
This calculator applies a Compound Depreciation model based on market segment averages.
Typical Year 1 drop is roughly 20%, stabilizing to 10-15% in subsequent years.
Reference Data
| Year of Ownership | Average Value Retained | Average Depreciation |
|---|---|---|
| Year 1 | 81% | -19% |
| Year 2 | 69% | -12% |
| Year 3 | 58% | -11% |
| Year 4 | 49% | -9% |
| Year 5 | 40% | -9% |
| Year 6 | 34% | -6% |
| Year 7 | 29% | -5% |
| Year 8 | 25% | -4% |
| Year 9 | 21% | -4% |
| Year 10 | 18% | -3% |