Home › Auto › Car Depreciation Calculator

Car Depreciation Calculator: See Your Car's Future Value

The average new car loses 20% in year one and 40–50% by year five. Enter your car's details to see exactly how much value you'll lose — or have already lost.

Updated Mar 2026Auto$3K–$30K+ lost in 5 yr
Car Depreciation Calculator
Enter your vehicle details to see projected value over 10 years

Depreciation by Car Brand (5-Year Value Retention)

Brand5-Year Retention$40K Car at Year 5Rating
Porsche58–63%$23,200–$25,200Best
Toyota55–62%$22,000–$24,800Excellent
Lexus52–58%$20,800–$23,200Excellent
Jeep (Wrangler)55–65%$22,000–$26,000Excellent
Honda50–56%$20,000–$22,400Good
Subaru48–54%$19,200–$21,600Good
Ford (trucks)50–58%$20,000–$23,200Good
Hyundai / Kia42–50%$16,800–$20,000Average
Tesla (3/Y)45–55%$18,000–$22,000Average
BMW35–45%$14,000–$18,000Below Avg
Mercedes-Benz35–43%$14,000–$17,200Below Avg
Audi33–42%$13,200–$16,800Below Avg
Maserati25–35%$10,000–$14,000Worst
🏆 Best Value Holders
Toyota Tacoma, Jeep Wrangler, and Porsche 911 consistently top depreciation charts. A 5-year-old Tacoma often retains 65–70% of its original value — better than most 3-year-old cars from other brands.

Average Depreciation by Year

AgeValue RemainingOn a $40,000 CarWhat This Means
Drive off lot90%$36,00010% lost immediately
Year 180–85%$32,000–$34,000Steepest single year
Year 268–75%$27,200–$30,000Still depreciating fast
Year 358–65%$23,200–$26,000CPO sweet spot
Year 540–52%$16,000–$20,800Curve flattening
Year 730–40%$12,000–$16,000Good used value zone
Year 1020–30%$8,000–$12,000Minimal annual loss

The critical takeaway: buying a 2–3 year old car saves you the steepest 30–40% depreciation hit while getting a vehicle that's still practically new. On a $40,000 car, that's $12,000–$16,000 saved just by letting someone else absorb the initial depreciation.

7 Strategies to Beat Depreciation

🚗 Buy 2–3 years old (CPO) — Skip the 30–40% first-owner depreciation hit while getting remaining warranty coverage.
🏷️ Choose brands that hold value — Toyota, Lexus, Porsche, and trucks retain 50–65% at 5 years vs. 30–40% for luxury sedans.
📏 Keep mileage reasonable — Every 10,000 miles above average reduces value by ~$1,500–$3,000. Work from home? Your car holds value better.
🔧 Keep maintenance records — A complete service history adds 10–15% to resale value. Save every receipt.
🎨 Pick popular colors — White, black, gray, and silver resell for 2–5% more than unusual colors.
⏰ Drive it 10+ years — The cheapest car is the one you already own. After year 7, depreciation is minimal.
📈 Time your sale — Sell trucks/SUVs before winter. Sell convertibles in spring. Trade before major maintenance milestones.

New vs. Used vs. Lease: Depreciation Cost Comparison

Strategy5-Year Depreciation LossMonthly CostBest For
Buy new, sell at 5 years$16,000–$24,000$267–$400/moWant latest features
Buy 3-yr-old, keep to 8$6,000–$10,000$100–$167/moBest value
Lease 36 months$12,000–$18,000$333–$500/moNew car every 3 yrs
Buy 5-yr-old, drive to 15$4,000–$8,000$33–$67/moMaximum savings
💡 The Math That Changes Everything
A $40,000 new car costs ~$333/month in depreciation alone over 5 years. A 3-year-old version ($26,000) costs ~$130/month in depreciation kept another 5 years. That $200/month savings invested at 8% grows to $36,000+ over 10 years.

Frequently Asked Questions

How much does a new car depreciate in the first year?▼
A new car typically loses 15–25% of its value in the first year. On a $40,000 car, that's $6,000–$10,000. About 10% is lost driving off the lot. Trucks and Toyotas lose less (12–18%), while luxury sedans can lose 25–30%.
Which cars depreciate the fastest?▼
Luxury sedans depreciate fastest: Maserati Ghibli (60–70% loss in 5 years), BMW 7 Series (55–65%), Mercedes S-Class (50–60%). This makes them excellent used values — a 3-year-old BMW 5 Series often costs less than a new Camry.
Do electric cars depreciate faster than gas cars?▼
It depends. Tesla Model 3/Y hold value well (45–55% at 5 years), competitive with gas cars. Non-Tesla EVs historically depreciated faster due to range concerns and rapid tech improvements, but this gap is closing as EV infrastructure matures.
Does mileage or age affect depreciation more?▼
Age matters more for the first 3–5 years, then mileage takes over. A 3-year-old car with 20,000 miles is worth significantly more than one with 60,000 miles. Each 10,000 extra miles costs roughly $1,500–$3,000 in value.
What's the cheapest way to own a car?▼
Buy a 5–7 year old reliable car (Toyota Corolla, Honda Civic, Mazda3) for $12,000–$18,000 and drive it 8–10+ more years. Depreciation drops to roughly $50–$100/month vs. $300–$400 for a new car, plus lower insurance and registration.
Related Calculators
Car Insurance Car Loan Lease vs. Buy New vs. Used Gas vs. Electric Tesla Monthly Cost
Reviewed by Connor Price · Cost Research
📊 Data Sources & Methodology
Depreciation rates based on Kelley Blue Book, Edmunds, iSeeCars, and NADA data for 2019–2026 model years. Brand retention rates represent averages across model lines. Updated March 2026. For your specific vehicle, check KBB.com or Edmunds.com.