Car depreciation calculator
As the mileage on your car goes up, the value of it goes down. Car depreciation is the rate at which your vehicle loses its value over time. 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.
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How much will my car depreciate?
According to iSeeCars, in 2023 the average car lost 38.8% of its value over five years. However, different cars depreciate at different rates, with SUVs and trucks generally holding their value longer than other types of vehicles. Used cars also depreciate more slowly than new ones, keeping more of their resale value in comparison.
How to calculate car depreciation
Car depreciation varies by make and model, but you can ballpark your car's depreciated value by looking up its current market value and subtracting it from the price you originally paid for it. Kelley Blue Book, Consumer Reports, and other websites offer quick ways to look up a vehicle's market value. Having this info handy can be useful if you plan to trade in your car.
If you're shopping for a brand-new car, you could also research prices for older models of the one you want to get an idea of what it'll be worth in a few years. Progressive Car Shopping Services provided by TrueCar can help you get started, whether you're buying new or used.
Use our car depreciation calculator to estimate how much your vehicle could decrease in value each year over the next six years.
Car Depreciation Calculator
This calculator is for illustrative and educational purposes only. Its accuracy and applicability to your circumstances is not guaranteed. You may wish to consult your own adviser regarding your circumstances.
What factors affect car depreciation?
Keep these factors in mind when estimating your vehicle's value:
- Make and model: If you own a popular make and model of a car, it will likely retain its value longer than one with fewer fans.
- Condition: A vehicle with normal wear and tear will retain its value better than one that has been involved in accidents or used for work. For example, a truck that routinely goes off-road will suffer more damage than a car used for pleasure or commute to and from the office.
- Age: The older your vehicle is, the lower its value — with certain exceptions, such as classic car values.
- Mileage: Vehicles have a practical upper limit on the number of miles they can accumulate without major, expensive repairs. The more miles on a vehicle, the lower its value is likely to be. Learn what's considered good mileage for a used car.
Other factors, such as ownership history and even the vehicle's color, can sometimes play a part in depreciation. A custom paint job will likely depreciate a car more than a solid black or grey paint job, for instance.
Do accidents affect the value of a car?
Yes, vehicles damaged in an accident generally lose value. But the depreciated value of the vehicle depends on the make and model, severity of the damage, the type and amount of parts replaced, and the quality of the repairs.
How can I limit my car's depreciation?
Although you can't prevent car depreciation, there are steps you can take to limit how much value your vehicle loses:
- Limit how much you drive: If possible, putting less than 10,000 miles per year on your vehicle not only keeps the odometer reading low, but it also reduces the risk of accidents and damage.
- Keep your car in a garage or covered spot: Reducing exposure to the elements will preserve the paint job and limit damage from severe weather like hail.
- Perform regular maintenance on your vehicle: Follow the manufacturer's suggestions on when to receive oil changes, tire rotations, and more. Avoid neglecting the engine, and the vehicle will be worth far more, especially if it's a sought-after model and buyers want all original parts.
What cars have the highest and lowest depreciation rates?
The Maserati Quattroporte and the BMW 7 series topped iSeeCars' list of vehicles with the highest depreciation in 2023, at 64.5% and 61.8% over five years, respectively. According to their study, luxury sedans and SUVs tended to drop the most in value. Learn more about insurance for BMWs.
According to iSeeCars, the Porsche 911 coupe had the lowest depreciation rate in 2023, losing just 9.3% of its value over five years. In general, in-demand cars tend to hold their value better, and the Porsche 911 is one of the most popular sports cars in the used market. Other vehicles iSeeCars identified as having a low depreciation rate included best-sellers like the Toyota Tacoma and Jeep Wrangler. Learn more about insurance for Jeeps.
Pro tip:
If you purchase a used vehicle, it won't depreciate as fast as a new one will. However, its overall value may be lower.
Will my car's depreciation impact my car insurance premium?
If you have an accident or reason to make an insurance claim for your vehicle, you'll receive a lower amount than your car's original purchase price because the insurer deducts depreciation from the claim amount.
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