About the Vehicle Depreciation Calculator
Depreciation is usually a car's largest ownership cost, and most of it happens early. This projects resale value year by year, with a steeper first-year drop and a steadier decline after.
How it’s calculated
Value after year 1 = price × (1 − first-year drop). Later years = year-1 value × (1 − annual drop)^(years − 1).
Example calculation
A $35,000 car losing 20% the first year then 15% a year is worth about $14,600 after five years — roughly 42% retained.
Frequently asked questions
Why buy used?
Because the first owner absorbs the steepest depreciation. A 1–3 year old car has already taken the biggest value hit, so more of your money goes to the car and less to depreciation.
Which cars hold value best?
It varies widely by make and model — trucks and some SUVs tend to retain value well, while luxury sedans often depreciate faster. Check estimates for the specific vehicle.
This tool provides estimates for general informational and educational purposes only. Results are based on the values you enter and standard formulas, and may not reflect your specific circumstances.