See how much your vehicle loses value over time
| Year | Value | Depreciation | Cumulative Loss |
|---|
A new car typically loses 20-30% of its value in the first year and about 15% per year after that. After 5 years, most cars have lost 50-60% of their original value.
Toyota, Honda, and Porsche models tend to hold value best. Luxury vehicles and electric cars often depreciate faster.
Car depreciation is typically calculated as a percentage of the current value each year. Our calculator uses declining balance depreciation.
Yes, higher mileage accelerates depreciation. Cars with over 12,000 miles per year tend to lose value faster.
Cars depreciate the most in the first year (20-30%), then the rate slows. The biggest hit happens the moment you drive off the lot.
For business vehicles, yes. You can deduct depreciation using methods like MACRS. Personal vehicles are not tax deductible.
Excellent condition cars retain more value. Accident history, maintenance records, and overall wear all impact depreciation.
Buying a 2-3 year old car lets someone else absorb the steepest depreciation while you still get a reliable vehicle with warranty.