Vehicle Depreciation Schedule Calculator
Project a car’s value year by year using a steep first-year drop and a gentler decline after, with a full depreciation table.
How it works
Year 1: value × (1 − firstYear%) · Later years: value × (1 − annual%) applied to the running value
Cars depreciate on a declining-balance curve, not a straight line: the biggest drop happens the moment a new car is driven off the lot, then the percentage loss eases in later years. This model applies a steep first-year rate and a gentler rate thereafter, compounding on the remaining value each year. Actual depreciation depends heavily on make, mileage, condition and demand — some models hold value far better than others — so treat the curve as a planning estimate.
Worked example
A $35,000 car losing 20% in year one is worth $28,000. Losing 15% a year after that gives $23,800, $20,230, $17,196 and $14,616 by the end of year five — about 41.8% retained.
Frequently asked questions
Why is the first year so steep?
A new car becomes a used car the instant it is titled, and buyers pay less for used. Combined with the loss of that “new” premium, first-year depreciation of 15–25% is common, far more than any later single year.
Do all cars depreciate at the same rate?
No. Reliable, in-demand models and trucks can retain well over half their value after five years, while luxury sedans and cars with high supply can lose far more. Mileage, condition, color and options all move the number.
How can I reduce depreciation losses?
Buy a model with a strong resale reputation, keep mileage and wear moderate, maintain service records, or buy a 2–3 year old car and let the first owner absorb the steepest drop.
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Educational estimate — real figures vary by vehicle, lender, dealer and local rules.