Car Depreciation Calculator
Calculate vehicle depreciation over 1 to 10 years. Predict residual car value, total depreciation lost, cost per mile.
Vehicle Purchase Details
Predicted Resale Value
⚖️ Decision Verdict: Steepest Loss Behind You After Year 3
Over the first 3 years, the car loses 40.8% of its value (£11,435). If you continue holding through Year 5, annual depreciation slows significantly to ~8% to 10% per year, reducing your cost per mile.
Year-by-Year Depreciation Curve
| Year | Vehicle Age | Estimated Value | Year Loss | Cumulative Loss | Value Retained |
|---|
About this tool
How to use it
- Enter the vehicle purchase price and select whether the car is brand new or pre-owned (age at purchase).
- Specify your expected annual mileage and select the vehicle category / brand reliability tier.
- Adjust the ownership timeline slider (1 to 10 years) to match how long you plan to keep the vehicle.
- Click 'Calculate Depreciation' to view the predicted future resale value and total money lost.
- Inspect the cost-per-mile, cost-per-month, and full 10-year depreciation schedule table.
Why it matters
Depreciation is the single largest hidden cost of car ownership—frequently exceeding the combined cost of fuel, car insurance, road tax, and servicing. Brand new vehicles typically lose 15% to 25% of their value in their first 12 months alone, and roughly 40% to 50% over their first 3 years. Calculating your vehicle's depreciation curve allows you to time your resale or trade-in strategically before values drop steeply.
When to use it
Use this calculator when deciding between buying new vs nearly-new (pre-owned), budgeting the true monthly cost of vehicle ownership, calculating business mileage deductions, or evaluating finance balloon payments (PCP).
Good to know
Mileage Multiplier: Vehicles driven significantly more than the national average (10,000 miles/year) experience accelerated market depreciation due to accelerated component wear and higher odometer readings.
Common questions
How fast does a new car depreciate?
On average, a brand new car loses roughly 10% of its value the minute it is driven off the dealership forecourt, and approximately 20% by the end of Year 1. By Year 3, most mainstream passenger vehicles retain 50% to 60% of their original sticker price.
Which cars hold their value the best?
Trucks, body-on-frame SUVs, and reliable Japanese models (Toyota, Honda, Lexus) consistently demonstrate the lowest depreciation rates due to strong secondary-market buyer demand and long-term mechanical durability.
Why do luxury cars depreciate faster?
High-end luxury vehicles (BMW, Mercedes-Benz, Audi, Jaguar) depreciate significantly faster (often losing 60%+ in 3 years) due to expensive out-of-warranty maintenance, complex electronics, and rapid technological obsolescence.
Is buying a 3-year-old car the smartest financial choice?
Financially, yes. An 'off-lease' 3-year-old vehicle has already absorbed its steepest depreciation hit while typically retaining low mileage and modern safety technology.
How does mileage affect car depreciation?
High mileage accelerates depreciation. For every 10,000 miles driven above the standard annual average, residual value drops by roughly 5% to 8% compared to equivalent low-mileage peers.