Car Depreciation Calculator
What Is Car Depreciation?
A car loses some of its value each year through the everyday wear and tear that comes with aging. This loss in value is known as depreciation. While depreciation is inescapable, you can at least forecast your car's worth over time by using our car depreciation calculator, making it easy to see what it might sell for down the road.For more tools and information, see our Cost to Own section and Car Values page.
New cars often shed about 55% of their original purchase price within the first five years.
Calculate CarDepreciation
On average, new cars depreciate about 30% over the first 2 years, and continue to depreciate 8-12% each year after that. Use the calculator to see your expected vehicle depreciation.
Year | Depreciation | Residual Value | ||
|---|---|---|---|---|
Year 0 | - | 100% | ||
Year 1 | 16% | 84% | ||
Year 2 | 12% | 72% | ||
Year 3 | 11% | 61% | ||
Year 4 | 9% | 52% | ||
Year 5 | 7% | 45% |
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FAQs
Depreciation rates vary depending on the vehicle's year, make, and model. The first year experiences the biggest hit to the car's market value, with most vehicles losing about 20% or more of their original value. The loss continues to decline from there. Cars often shed about 60% of their original purchase price within the first five years.
Ready to sell your car? Get your Kelley Blue Book® Value.
Certain brands depreciate faster than others. The ones that do are usually luxury or performance brands or ones with a less-than-stellar reputation for reliability. On a similar note, our projections using Kelley Blue Book data indicate that the two brands with the lowest 5-year cost to own are Toyota and Lexus. For a list of the standout cars, trucks, and SUV's, take a look at the Kelley Blue Book 5-Year Cost to Own Award winners.