Car Depreciation Calculator

How to Use This Calculator

Car depreciation is the single largest cost of vehicle ownership, often exceeding fuel, insurance, and maintenance combined. A new car loses approximately 20% of its value in the first year and roughly 60% over the first five years. This calculator uses industry-standard depreciation curves to estimate your vehicle's current value based on its original purchase price and age, then projects future values so you can plan when to sell or trade in for maximum return. Understanding depreciation helps you make smarter buying decisions. Vehicles that hold their value well (Toyota, Honda, Subaru, Porsche) depreciate more slowly, meaning lower total cost of ownership. Buying a car that is 2-3 years old lets you avoid the steepest depreciation while still getting a relatively new vehicle with modern features and remaining warranty coverage. The depreciation curve flattens significantly after year five, which is why older cars lose value more slowly in percentage terms. This information is also crucial for determining whether you are underwater on your car loan (owing more than the car is worth), deciding when to sell or trade in, and calculating the true cost of ownership for budgeting purposes.

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