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Car Depreciation Calculator

Calculator

Estimate how much your car will be worth over time

Free to useNo data storedAI insightsUpdated: February 2026

Cars lose value over time - it's the biggest hidden cost of car ownership. This calculator estimates your car's future value based on typical depreciation patterns for different vehicle types.

Enter Your Details

Enter Your Details

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Real-World Examples

New SUV Depreciation

$50,000 new SUV projecting 5 years at 15,000km/year.

Inputs Used:

price:50,000type:SUVyears:5

Year 1: $42,500 (-15%). Year 3: $32,500 (-35%). Year 5: $25,000 (-50%). Total depreciation: $25,000 over 5 years.

Used Car Value Retention

$30,000 for a 3-year-old medium car, projecting 3 more years.

Inputs Used:

price:30,000type:Medium Carage:3years:3

Year 1: $27,000 (-10%). Year 3: $22,500 (-25%). Much slower depreciation as the steep early drop already occurred.

Frequently Asked Questions

Glossary

Depreciation
The loss in value of a car over time due to age, wear, and market factors.
Residual Value
The estimated value of a car at a future point in time.
Straight-Line Depreciation
A simplified model where value decreases by equal amounts each year.

How to Use

  1. 1Enter the purchase price
  2. 2Select the vehicle type
  3. 3Indicate if buying new or used
  4. 4Add your expected annual kilometers
  5. 5Set how many years to project

Key Information

  • New cars lose 15-25% in the first year alone
  • By year 5, most cars are worth 40-50% of new price
  • Utes and 4WDs typically depreciate slower than sedans
  • High kilometers increase depreciation
  • Popular models hold value better than obscure ones

Pro Tips

  • Buy 2-3 years old to avoid the steepest depreciation
  • Choose colors and specs that are popular for resale
  • Keep service records - proven maintenance helps value
  • Toyota and Mazda typically have best resale in mainstream market

Avoid These Mistakes

  • Underestimating how much value a new car loses
  • Not factoring depreciation into total cost of ownership
  • Assuming your car is 'worth more' than market rates
  • Over-capitalizing modifications that don't add resale value

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

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