Lexus Finance Calculator

Car Depreciation Calculator

Estimated Valuation

Current Estimated Value

Total Depreciation

Retained Value %

Monthly Cost of Ownership

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('carAge').value); var rate = parseFloat(document.getElementById('vehicleType').value); var mileage = parseFloat(document.getElementById('annualMileage').value); if (isNaN(price) || isNaN(age) || isNaN(mileage) || price 0) { // Year 1 hit (Heavy) currentValue = price * 0.80; // Subsequent years if (age > 1) { for (var i = 1; i 0) { var penalty = (mileageDiff / 1000) * 0.01; currentValue = currentValue * (1 – penalty); } else { var bonus = Math.abs(mileageDiff / 1000) * 0.005; if (bonus > 0.15) bonus = 0.15; // Cap the bonus at 15% currentValue = currentValue * (1 + bonus); } // Ensure value doesn't go below scrap value (approx 5% or $500) var scrapValue = Math.max(price * 0.05, 500); if (currentValue 0 ? (totalLost / (age * 12)) : 0; document.getElementById('currentValue').innerText = "$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalLost').innerText = "$" + totalLost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('retainedPercent').innerText = retainedPercent.toFixed(1) + "%"; document.getElementById('monthlyDep').innerText = "$" + monthlyCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultsArea').style.display = 'block'; }

Understanding Car Depreciation: How Much Is Your Car Worth?

Car depreciation is the difference between the amount you spent on 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 "hidden" cost of vehicle ownership, often exceeding the costs of fuel, insurance, and maintenance combined.

How This Calculator Works

Our Car Depreciation Calculator uses industry-standard algorithms to estimate your vehicle's current market value. It considers four primary factors:

• The First-Year Hit: New cars typically lose 20% of their value in the first 12 months.
• Vehicle Category: Luxury cars and high-end EVs often depreciate faster (up to 22% annually) than reliable pickup trucks or economy sedans (which may lose only 12-15% annually).
• Age: Depreciation is exponential. The older the car gets, the slower the rate of value loss becomes in dollar terms.
• The Mileage Penalty: The average driver covers 12,000 miles per year. If you drive significantly more, your car's value drops faster due to wear and tear.

Example Calculation

Imagine you purchased a Mid-range SUV for $40,000. After 3 years of driving 15,000 miles per year:

1. Year 1: Value drops to $32,000 (20% loss).
2. Years 2-3: Value drops by roughly 18% each year.
3. Mileage: Since you drove 9,000 miles over the standard limit (3,000 extra per year), an additional penalty is applied.
4. Result: Your car might be worth approximately $21,000, representing a total depreciation of $19,000.

How to Minimize Depreciation

While you cannot stop depreciation, you can slow it down. To preserve your car's resale value, follow these tips:

1. Keep Maintenance Records: A fully documented service history can increase resale value by thousands.
2. Limit Mileage: Keep annual mileage close to or below 12,000 miles.
3. Choose Popular Colors: Neutral colors like white, black, and silver are easier to resell than bright, niche colors.
4. Maintain Condition: Regular detailing and fixing minor dents prevents "visual depreciation."