How much does a car depreciate per year?

A new car depreciates approximately 20% in the first year of ownership, then about 10–15% per year in subsequent years. By year 5, most cars have lost roughly 50–60% of their original value. However, depreciation rates vary significantly by brand and model — some vehicles (like the Toyota 4Runner or Honda Civic) retain value much better than average.

What car depreciates the fastest?

Luxury sedans, certain domestic brands, and first-year models of new electric vehicles tend to depreciate fastest. Models frequently cited as having the fastest depreciation include the BMW 5 Series, Mercedes E-Class, Jaguar, and some Maserati models, which can lose 50% of their value within 3 years. High initial MSRP combined with high maintenance costs drives rapid depreciation.

What cars hold their value the best?

According to Kelley Blue Book and iSeeCars data, pickup trucks (Toyota Tacoma, Ford F-150, Chevrolet Silverado), Jeep Wrangler, Toyota 4Runner, Porsche 911, and Toyota Land Cruiser consistently top depreciation charts with the best value retention. These models typically retain 60–70% of their value after 5 years.

At what age does car depreciation slow down?

Depreciation is steepest in the first 3–5 years and slows significantly after that. By year 5–6, most cars have settled into a slower 8–10% per year decline. Very old vehicles (10+ years) depreciate even more slowly and may eventually find a floor value, especially for classic cars or trucks in good condition.

Does mileage affect car depreciation?

Yes — mileage is one of the strongest predictors of resale value alongside age and condition. The industry benchmark is approximately 12,000–15,000 miles per year. A car with significantly higher mileage will depreciate faster than average, while a low-mileage vehicle of the same age typically commands a premium at resale. As a rule of thumb, each 10,000 excess miles may reduce value by $1,000–$2,000.

Car Depreciation Calculator

Calculate how much your car will be worth each year using industry-standard depreciation curves. See your vehicle's projected value and total loss over 10 years.

Original Purchase Price

Current Vehicle Age (Years)

Vehicle Type

Annual Mileage

Display Currency

Car Depreciation Calculator

Enter your vehicle's purchase price, age, and type to see a year-by-year depreciation schedule and projected resale value.

Mathematical Audit

Car Depreciation Formula

Uses industry-standard declining-balance depreciation rates derived from NADA and Kelley Blue Book resale data. Rates vary by year of ownership.

Year 1 Value = Purchase Price × (1 − 0.20)

Year 2 Value = Year 1 Value × (1 − 0.15)

Year 3 Value = Year 2 Value × (1 − 0.13)

Year 4 Value = Year 3 Value × (1 − 0.12)

Year 5+ Value = Previous Year Value × (1 − 0.10)

Total Depreciation = Purchase Price − Value at Year N

These are average industry rates. Luxury brands, EVs, and trucks depreciate differently. High-demand vehicles and low-mileage cars may retain more value. Mileage adjustment: add 1% depreciation per 5,000 miles above 12,000 annually.

Operational Guide

How to Use the Car Depreciation Calculator

Enter the purchase price

Enter the original purchase price (MSRP or price paid) of the vehicle.

Set the vehicle's current age

If the car is already 2 years old, set starting age to 2. The calculator will apply depreciation from that point forward.

Select a vehicle type

Choose the vehicle type (standard, truck/SUV, luxury, EV) to apply the appropriate depreciation rate curve.

Enter annual mileage

Higher-than-average mileage accelerates depreciation. The baseline is 12,000 miles/year.

Click Calculate

View a year-by-year depreciation table and chart showing projected value through year 10.

Real-World Scenario Example

"A new $38,000 standard sedan purchased today, driven 14,000 miles per year."

Inputs

purchasePrice:38000

currentAgeYears:0

vehicleType:standard

annualMileage:14000

Result

After 5 years, the sedan is worth approximately $18,300 (48% of original value), representing $19,700 in total depreciation.

Important Disclaimer

These depreciation estimates are based on industry averages and are for educational purposes only. Actual vehicle values depend on condition, mileage, market demand, and regional factors. For an accurate valuation, consult Kelley Blue Book or a licensed appraiser.

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Sources & References

Vehicle Depreciation Guide — Carfax

https://www.carfax.com/blog/car-depreciation

Calculator Inputs

Calculation Results

Car Depreciation Calculator

Car Depreciation Formula

How to Use the Car Depreciation Calculator

Enter the purchase price

Set the vehicle's current age

Select a vehicle type

Enter annual mileage

Click Calculate

Real-World Scenario Example

Important Disclaimer

How much does a car depreciate per year?

What car depreciates the fastest?

What cars hold their value the best?

At what age does car depreciation slow down?

Does mileage affect car depreciation?

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Calculation Results

Car Depreciation Calculator