Car Depreciation Calculator
Estimate your car's current value and total depreciation based on purchase price, age, and annual depreciation rate. Includes a year-by-year value breakdown.
Vehicle details
Typical: 15–20% per year
Depreciation summary
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Current value
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Value lost so far
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% of original lost
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Value in X years
| Year | Start value | Depreciation | End value | Total lost |
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Understanding Car Depreciation
Depreciation is the single biggest cost of car ownership — often exceeding fuel, insurance, and servicing combined. A typical new car loses around 60% of its value in five years.
Factors That Affect Depreciation
- Brand reliability reputation: Toyota, Honda, and Lexus hold value better than average.
- Mileage: High annual mileage (15,000+ miles) accelerates value loss.
- Fuel type: Diesel cars have depreciated faster in the UK since clean air zone regulations.
- Colour: Unusual colours depreciate faster; silver, grey, and white retain value best.
- Service history: A full documented service history is worth significantly more at resale.
Frequently Asked Questions
A new car typically loses 15–25% of its value in the first year and a further 10–20% per year thereafter. This calculator uses the declining balance method: each year's depreciation is calculated as a percentage of the current value, not the original price.
The average new car loses about 60% of its value over 5 years. The rate varies widely: luxury cars and sports cars often depreciate faster, while some brands (Toyota, Honda, Subaru) hold value better. Diesel cars have seen accelerated depreciation in recent years due to emission regulations.
Residual value (or resale value) is the estimated worth of a vehicle at a future date. Lenders use this to calculate lease payments. A higher residual value means lower monthly lease payments.
New cars depreciate significantly more in year one (often 20–30%) compared to subsequent years. For a more accurate estimate on a new car, adjust the first-year rate. This calculator uses a consistent annual rate for simplicity.