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Use our free car depreciation calculator to estimate your vehicle's current market value and project how it will depreciate over time. Covering 60+ makes and 800+ models, this tool accounts for mileage, condition, body type, and brand tier to give you an accurate year-by-year breakdown with interactive charts. No sign-up, no data stored.
- A new car loses 20% of its value in the first year of ownership.
- After 5 years, the average car is worth only 40% of its original price.
- Trucks and SUVs retain 5–8% more value than sedans and minivans.
- Electric vehicles depreciate up to 50% faster than gas-powered equivalents due to rapid battery technology changes.
- Vehicles in "Excellent" condition are worth approximately 5% more than those in "Good" condition.
- Every 1,000 miles above average adds roughly 0.5% additional depreciation.
Enter Your Car Details
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How to Check Your Car's Value
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Select your vehicle
Choose your car's make, model, and the year you purchased it from the dropdown menus.
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Enter price and mileage
Enter the original purchase price and your current odometer reading.
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Set condition and body type
Select your vehicle's current condition (Excellent to Salvage) and body type for more accurate results.
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View your results
Click "Calculate Depreciation" to see your car's estimated value, total loss, year-by-year breakdown, and interactive chart.
Frequently Asked Questions
How much does a car depreciate per year?
A new car depreciates approximately 20% in year one, then 10–15% annually in years two through five. After 5 years, the average vehicle retains only about 40% of its original purchase price. Trucks and SUVs hold value 5–8% better than sedans, while electric vehicles lose up to 30% in the first year. For a $35,000 car, that means roughly $7,000 lost in the first year alone.
What factors affect car depreciation?
The six main factors that determine car depreciation are: (1) Brand tier — luxury brands lose 62% in 5 years vs. 54% for mainstream; (2) Mileage — each 1,000 miles above average adds ~0.5% depreciation; (3) Condition — salvage-title vehicles are worth 60% less than clean-title equivalents; (4) Body type — trucks retain 8% more value than sedans; (5) Vehicle age — the steepest depreciation happens in years 1–2; and (6) Market demand — popular models like the Toyota Tacoma or Porsche 911 depreciate well below average.
How do I calculate my car's current value?
To estimate your car's current value, you need five data points: make and model, purchase year, original price, current mileage, and condition. Enter these into our free calculator above. It applies tiered depreciation curves specific to your vehicle's brand category (mainstream, premium, luxury, exotic, or EV), then adjusts for mileage deviation from the 12,000 miles/year average, condition rating, and body type. Results include current estimated value, total dollar loss, percentage depreciated, and a year-by-year forecast.
Which cars depreciate the fastest?
Electric vehicles depreciate fastest, losing an average of 30% in year one and up to 66% over five years. Luxury sedans from BMW, Mercedes-Benz, and Audi also depreciate heavily — a $60,000 BMW 5 Series can lose over $37,000 in value by year five. Discontinued brands like Pontiac, Saturn, and Saab lose value rapidly due to parts scarcity and declining service network support. Minivans are the fastest-depreciating body type, losing approximately 8% more than sedans.
Which cars hold their value best?
Trucks and body-on-frame SUVs hold their value best, retaining approximately 56% of their original price after 5 years. Specific models like the Toyota Tacoma, Jeep Wrangler, and Porsche 911 are known for exceptionally strong resale values. Exotic and ultra-luxury vehicles (Ferrari, Rolls-Royce, Bentley) lose only about 29–44% over five years due to limited production and collector demand. Among mainstream brands, Toyota and Honda consistently rank highest for long-term value retention.
How much value does a car lose when you drive it off the lot?
A new car typically loses 9–11% of its value the moment you drive it off the dealer lot. This immediate depreciation occurs because the car transitions from "new" to "used" status. Combined with the remaining first-year depreciation, a vehicle purchased for $35,000 will be worth approximately $28,000 by the end of year one — a loss of about $7,000. This is why buying a certified pre-owned vehicle that is 1–2 years old is often recommended as the best value strategy.
Is car depreciation tax deductible?
Car depreciation is tax deductible only if the vehicle is used for business purposes. Under IRS Section 179, business owners can deduct the depreciation of vehicles used more than 50% for business. For 2026, the first-year depreciation limit for passenger vehicles is approximately $20,400 with bonus depreciation. Personal-use vehicles are not eligible for depreciation deductions. Consult a tax professional for specific guidance based on your situation.
Car Depreciation Rates by Brand Tier
Not all vehicles depreciate at the same rate. Depreciation varies significantly based on the brand's market position. The table below shows average annual depreciation rates for each brand tier during the first five years of ownership.
| Brand Tier | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | 5-Yr Total Loss |
|---|---|---|---|---|---|---|
| Mainstream (Toyota, Honda, Ford) | 20% | 15% | 13% | 12% | 11% | ~54% |
| Premium (Acura, Volvo, Buick) | 22% | 16% | 14% | 13% | 12% | ~57% |
| Luxury (BMW, Mercedes, Audi) | 25% | 18% | 15% | 14% | 13% | ~62% |
| Ultra-Luxury (Rolls-Royce, Bentley) | 15% | 12% | 10% | 9% | 8% | ~44% |
| Exotic (Ferrari, Lamborghini) | 10% | 8% | 6% | 5% | 4% | ~29% |
| EV / Electric (Tesla, Rivian, Lucid) | 30% | 20% | 17% | 15% | 13% | ~66% |
| Trucks & Heavy-Duty (RAM, GMC) | 15% | 12% | 10% | 9% | 8% | ~44% |
| Discontinued (Pontiac, Saturn, Saab) | 28% | 20% | 18% | 16% | 14% | ~66% |
These rates are industry averages. Individual models can deviate significantly. For example, the Toyota Tacoma (mainstream tier) retains value better than many luxury vehicles, while a high-mileage BMW 7 Series can depreciate faster than average.
How Vehicle Condition Affects Value
Condition is one of the most impactful factors in a car's resale value. A vehicle rated "Excellent" by appraisal standards is worth approximately 5% more than one rated "Good," while a "Fair" condition vehicle loses about 10% compared to "Good." Vehicles in "Poor" condition trade at a 25% discount, and salvage-title vehicles typically sell for only 40% of their clean-title equivalent.
| Condition | Value Multiplier | Description |
|---|---|---|
| Excellent | +5% | No mechanical issues, minimal cosmetic wear, complete service history |
| Good | Baseline | Minor wear, well-maintained, no significant mechanical problems |
| Fair | −10% | Some mechanical or cosmetic issues, may need minor repairs |
| Poor | −25% | Significant mechanical problems, extensive cosmetic damage |
| Salvage | −60% | Salvage title due to insurance write-off, flood, or major accident |
Body Type and Resale Value
Body type plays a measurable role in how well a vehicle holds its value. Trucks retain the most value — approximately 8% more than a comparable sedan — driven by strong demand in both new and used markets. SUVs and crossovers hold about 5% better than sedans. On the other end, minivans depreciate the fastest by body type, losing roughly 8% more than sedans due to lower demand in the used market.
Mileage: The Hidden Depreciation Multiplier
The average American drives approximately 12,000 miles per year. Vehicles with mileage significantly above this average face accelerated depreciation. Our model applies 0.5% additional depreciation for every 1,000 miles over average. Conversely, low-mileage vehicles retain extra value — a 5-year-old car with only 30,000 miles (vs. the 60,000-mile average) can be worth 15% more than a typical example.
Luxury vs. Mainstream: The Depreciation Gap
Luxury vehicles from brands like BMW, Mercedes-Benz, and Audi typically lose 62% of their value in 5 years, compared to about 54% for mainstream brands like Toyota, Honda, and Ford. This gap is driven by higher maintenance costs, faster technology obsolescence, and larger price drops when new model years launch. However, ultra-luxury brands like Rolls-Royce and Bentley buck this trend, retaining about 56% of their value thanks to limited production and collector demand.
Electric Vehicle Depreciation in 2026
Electric vehicles face the steepest depreciation curve of any vehicle category, losing an average of 30% in the first year alone. By year five, the typical EV retains only about 34% of its original purchase price. This is primarily driven by rapid battery technology improvements that make older models less competitive, combined with federal and state incentives that reduce the effective price of new EVs. However, some models like the Tesla Model Y and Model 3 depreciate more slowly than the EV average due to strong brand loyalty and Supercharger network access.
When Is the Best Time to Buy a Used Car?
Based on typical depreciation curves, the sweet spot for used car value is between 3 and 5 years old. At this point, the vehicle has already absorbed the steepest depreciation (years 1–2) but still has significant useful life remaining. A 3-year-old mainstream vehicle typically costs about 45% less than its original sticker price while still being well within its warranty period for many manufacturers.