Car Depreciation Calculator
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What Your Result Means
- Current value: The estimated worth of the vehicle today, based on the standard depreciation curve applied to its age. This is a rough approximation — actual market value depends on make, model, condition, mileage, and local demand.
- Total depreciation: How much value the car has lost since purchase, shown in dollars and as a percentage. New cars typically lose 20% in year one and about 60% by year five.
- Projected values: Estimates of what the car will be worth in 1, 3, and 5 additional years from now. These projections assume the same depreciation curve continues — actual results vary by vehicle.
How This Calculator Works
You enter the original purchase price, the car's current age in years, and annual mileage. The tool applies a stepped depreciation curve: 20% loss in year one, 15% per year for years two through five, and roughly 10% per year after that. Mileage is collected for context but the current formula uses age as the primary depreciation driver, consistent with industry rule-of-thumb averages. The result is a starting estimate — for a precise trade-in value, check resources like Kelley Blue Book or Edmunds.
Quick Questions
Why do new cars lose so much value in year one?
The moment a new car is driven off the lot, it becomes "used" in the market's eyes. The first-year drop (typically 15–25%) reflects the difference between new-car retail pricing and the used-car market. This is the single largest depreciation hit in a vehicle's life.
Do some cars depreciate slower than others?
Yes. Trucks, SUVs, and certain brands (Toyota, Lexus, Porsche) tend to hold value better than average. Luxury sedans and high-volume economy cars often depreciate faster. This calculator uses an average curve — your specific vehicle may differ significantly.
Does mileage affect depreciation?
High mileage accelerates depreciation beyond the age-based curve. The average U.S. driver puts on about 12,000–15,000 miles per year. Vehicles well above that average lose value faster; low-mileage vehicles hold up better. This tool uses age only — for mileage-adjusted estimates, consult a pricing guide.
Is this accurate enough for a trade-in negotiation?
It gives a reasonable ballpark, but you should verify with Kelley Blue Book, Edmunds, or a local dealer appraisal before negotiating. Condition, accident history, service records, and local demand all affect the final trade-in offer.
Sources
- Edmunds — How Fast Does a New Car Lose Value? (depreciation curves by vehicle type)
- Kelley Blue Book (industry-standard vehicle valuation)
- IRS Publication 463 — Travel, Gift, and Car Expenses (depreciation rules for business vehicles)
Method & review
Estimate only. Results reflect your inputs and standard formulas. Double-check important decisions independently.