CarcostmeterCar depreciation calculator
Depreciation is the value a car loses while you own it, usually the largest cost of owning a newer car. See it year by year.
The car
$
years
years
After 8 years
Value$9,10728% of the price
Value lost$22,893
Lost per year$2,862
| Year | Car age | Drop that year | Value at year end |
|---|---|---|---|
| 1 | 1 | $6,400 (20%) | $25,600 |
| 2 | 2 | $3,840 (15%) | $21,760 |
| 3 | 3 | $3,264 (15%) | $18,496 |
| 4 | 4 | $2,774 (15%) | $15,722 |
| 5 | 5 | $2,358 (15%) | $13,363 |
| 6 | 6 | $1,604 (12%) | $11,760 |
| 7 | 7 | $1,411 (12%) | $10,349 |
| 8 | 8 | $1,242 (12%) | $9,107 |
How fast do cars lose value?
A typical new car loses about 20% of its value in the first year and around 15% a year for the next few years. The yearly drop slows as the car ages: roughly 12% between five and eight years old and 9% after that. Brands and models known for reliability lose value more slowly; luxury cars and many electric cars have lost value faster.
Why it matters
Buying a car that is two or three years old lets the first owner take the steepest part of the drop. Keeping a car longer spreads its lost value over more years, so the cost per year falls.
Compare the full cost of owning two or three cars, including fuel, insurance and maintenance.