GarageCalc How the estimate works
The model applies a steep first-year drop (the moment a car stops being new) and a steady percentage decline of the remaining value each year after. That matches how real resale curves behave: fast at first, flattening with age. The presets reflect typical market segments; if you know your model holds value unusually well or poorly, use the custom rates.
Using this before you buy
Compare the same purchase at different ages: a new car at $35,000 versus the same model at three years old. The difference in depreciation you actually pay over your ownership window is usually the single biggest number in the whole cost comparison, ahead of fuel and insurance. Speaking of fuel, price your typical year of driving with the fuel cost calculator.
Frequently asked questions
How much does a car depreciate per year?
A typical new car loses around 20 percent of its value in the first year and roughly 10 to 15 percent of the remaining value each year after that. After five years an average car is worth about 40 to 45 percent of its original price. Brand, reliability reputation, fuel type and market conditions move these numbers substantially.
Which cars depreciate the slowest?
Historically: body-on-frame trucks and SUVs (Toyota Tacoma, 4Runner, Jeep Wrangler), reliable mainstream brands (Toyota, Honda, Subaru), and sports cars with enthusiast followings. These can lose as little as 8 to 10 percent per year after the first.
Which cars depreciate the fastest?
Luxury sedans and large luxury SUVs, most EVs to date, and any model with weak reliability ratings or heavy incentives on new inventory. First-year losses of 25 to 35 percent are common in these segments.
Is depreciation really the biggest cost of owning a car?
For newer cars, yes. Over the first five years, depreciation typically exceeds fuel, insurance and maintenance individually, and often approaches them combined. That is why buying a 2-3 year old car, after the steepest part of the curve, is the classic value play.