See how your vehicle's value changes over time with standard depreciation curves.
To estimate vehicle depreciation:
The calculator applies industry-standard depreciation rates to show current value, future value, and total depreciation.
Depreciation uses a declining-balance model with standard annual rates:
Value(year) = Value(year−1) × (1 − depreciationRate)
Example: A $35,000 new car after 5 years:
$35,000 × 0.80 = $28,000$28,000 × 0.85 = $23,800$23,800 × 0.87 = $20,706$20,706 × 0.88 = $18,221$18,221 × 0.88 = $16,035Total depreciation: roughly $18,965 (54% of the purchase price).
The biggest drop happens in the first year — typically 20% of the original price. By the end of year three, most cars have lost about 40–45% of their value. Depreciation slows significantly after year five.
Buy a 2–3 year old car to avoid the steepest initial drop. Choose brands with strong resale value (Toyota, Honda, Subaru). Keep mileage moderate, maintain service records, and avoid modifications.
Historically EVs depreciated faster due to rapid technology improvements and range anxiety. However, popular models like Tesla have shown stronger resale values in recent years as demand for used EVs grows.