How fast do cars depreciate?

New cars typically lose 20-25% of their value in the first year, then depreciate about 15-20% per year for the next few years. After 5 years, a car is often worth 40-50% of its original price.

What affects car depreciation?

Factors include make and model, mileage, condition, accident history, market demand, and brand reputation. Luxury vehicles and some domestic brands tend to depreciate faster than economy cars and Japanese brands.

How can I slow down depreciation?

Keep mileage low, maintain the vehicle properly, keep records of maintenance, protect the exterior and interior, and avoid modifications. Buying used instead of new also helps you avoid the steepest depreciation curve.

Free Tool

Car Depreciation Calculator

Estimate how much your vehicle will lose in value over time. Understand depreciation to make smarter buying and selling decisions.

Vehicle Details

First year: -18%, then -14% annually

$35,000

0 years old

5 years

Current Value

$35,000

Based on 0 years of depreciation

Value in 5 Years

$15,699

-$19,301 (55%)

Year-by-Year Projection

Year 1

$28,700(-$6,300)

Year 2

$24,682(-$4,018)

Year 3

$21,227(-$3,455)

Year 4

$18,255(-$2,972)

Year 5

$15,699(-$2,556)

Check Before You Buy

Accident history and title issues can significantly reduce a vehicle's value beyond normal depreciation.

Get Vehicle History

Depreciation FAQs

Yes, significantly. A vehicle with accident history can be worth 10-25% less than a comparable clean-title vehicle. This is why checking a vehicle history report before buying used is essential.

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