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Car Depreciation Calculator

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Estimated Current Value:

Total Depreciation:

Percentage Lost:

function calculateCarDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('carAge').value); var miles = parseFloat(document.getElementById('annualMileage').value); var condition = document.getElementById('carCondition').value; if (isNaN(price) || isNaN(age) || isNaN(miles) || price = 1) { currentValue = price * 0.80; // First year drop if (age > 1) { for (var i = 1; i 0 && age < 1) { // Partial first year currentValue = price * (1 – (0.20 * age)); } // Mileage Adjustment (Standard is 12,000 miles per year) var expectedTotalMiles = age * 12000; var actualTotalMiles = age * miles; var mileageDifference = actualTotalMiles – expectedTotalMiles; // Subtract 1% value for every 5,000 miles over average, or add for under var mileageAdjustmentFactor = (mileageDifference / 5000) * 0.01; currentValue = currentValue * (1 – mileageAdjustmentFactor); // Condition Adjustment var conditionMultiplier = 1.0; if (condition === 'excellent') conditionMultiplier = 1.05; if (condition === 'good') conditionMultiplier = 1.0; if (condition === 'fair') conditionMultiplier = 0.85; if (condition === 'poor') conditionMultiplier = 0.65; currentValue = currentValue * conditionMultiplier; // Prevent value from going below scrap value (roughly 5% of price or $500) var scrapValue = Math.max(price * 0.05, 500); if (currentValue < scrapValue) currentValue = scrapValue; var totalDepreciation = price – currentValue; var percentLost = (totalDepreciation / price) * 100; document.getElementById('currentValueDisplay').innerText = '$' + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalDepreciationDisplay').innerText = '$' + totalDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('percentageLostDisplay').innerText = percentLost.toFixed(1) + '%'; document.getElementById('depreciationResult').style.display = 'block'; }

Understanding Car Depreciation: How Much Value Does Your Vehicle Lose?

Car depreciation is the difference between the amount you spent when you purchased your vehicle and the amount you can get for it when you sell or trade it in. For most car owners, depreciation is the single largest expense of vehicle ownership—often exceeding the costs of fuel, insurance, and maintenance combined.

The 20/15 Rule of Thumb

While every make and model behaves differently, the automotive industry generally follows a standard pattern of value loss:

• The 20% Initial Drop: A new car loses approximately 20% of its value within the first 12 months of ownership.
• The 15% Annual Fade: For the next four to five years, cars typically lose roughly 15% of their remaining value each year.
• The 50% Milestone: By the end of year five, most vehicles are worth only about 40% to 50% of their original sticker price.

Key Factors That Affect Your Car's Resale Value

Our Car Depreciation Calculator uses several variables to estimate your vehicle's current market value:

1. Mileage: High mileage is a major value-killer. The average driver covers about 12,000 to 15,000 miles per year. If your odometer shows significantly more, expect a steeper decline in value.
2. Vehicle Condition: Mechanical health and aesthetic appeal matter. A car with a "Poor" condition rating (faded paint, stained upholstery, or engine issues) can be worth 35% less than a similar "Excellent" condition car.
3. Brand Reputation: Brands like Toyota, Honda, and Subaru historically retain their value better than luxury brands or discontinued models.
4. Fuel Efficiency: As gas prices fluctuate, the demand—and thus the resale value—of fuel-efficient hybrids or EVs often increases relative to gas-guzzling SUVs.

Example Calculation

If you bought a sedan for $35,000 and drove it for 3 years at 10,000 miles per year in Good condition:

• Year 1 Value: ~$28,000 (20% loss)
• Year 2 Value: ~$23,800 (15% loss)
• Year 3 Value: ~$20,230 (15% loss)
• Adjustment: Since you drove fewer miles than average, the calculator adds a small premium, resulting in an estimated value of roughly $21,000.

How to Minimize Depreciation

You cannot stop depreciation, but you can slow it down. To preserve your vehicle's equity, consider these tips:

• Buy "Nearly New": Purchase a 2-3 year old certified pre-owned (CPO) vehicle to let the first owner take the biggest 20% hit.
• Maintain Detailed Records: A documented service history proves the car was cared for, allowing you to list it in "Excellent" condition.
• Choose Popular Colors: Neutral colors like white, black, and silver are easier to resell than bright or "trendy" colors.
• Keep the Mileage Down: If you have a long commute, consider a cheap "work car" to keep the miles off your primary high-value vehicle.