Example
Input: $30k, 3 Years
Result: $18,400 Value
Step-by-Step Guide
- 1 Price
- New Value.
- 2 Age
- Years owned.
- 3 Result
- Future Value.
What is Car Depreciation Calculator?
Estimates a car's resale value over time using standard decay rates.
How it Works
Applies a compounding annual depreciation rate (typically 15-20%) to the purchase price.
FAQ
Average rate?
15-20% per year.
Which cars hold value?
Trucks and Toyotas/Hondas typically depreciate slower.
Luxury cars?
Depreciate faster due to high maintenance costs.
EV depreciation?
Historically faster due to battery tech, but stabilizing.
Gap insurance?
Covers the difference if you owe more than the car is worth.
Conclusion
Cars are liabilities, not assets. A new car loses ~20% value the moment you drive it off the lot. Buying used (3 years old) lets the first owner take the biggest depreciation hit.