Moneyzine
/Autos/Car Depreciation Calculator

Car Depreciation Calculator

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
October 4th, 2023
Advertiser Disclosure

You can use this car depreciation calculator to estimate the first year and total depreciation on a car you're thinking about buying or already own. The calculator uses an accelerated rate of depreciation for cars that are brand new and provides the user with a range of possible depreciation rates: from low to high. This calculator provides depreciation based on expected market values, it is not intended for use as a tax depreciation calculator.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Purchase Price of Car ($)

This is the purchase price of the car that you have negotiated with the dealership or private seller. This figure should not include rebates or trade-in allowances.

Current Vehicle Age (Years)

This is the current age of the vehicle you're thinking about buying. For new cars, simply enter zero. For used cars, round up or down to the nearest whole number.

Time the Vehicle is Owned (Years)

This is an estimate of the number of years you will own the car.

Final Vehicle Age (Years)

This is the age of the vehicle at the end of the depreciation cycle. This value is simply calculated by adding the current vehicle age to the time the vehicle is owned.

Rate of Depreciation (Low, Average, High)

This calculator provides three estimates of car depreciation rates: low, average, and high. According to published sources such as Kelley Blue Book and Edmunds.com, automobiles that have experienced low rates of depreciation (slower declines in value) include the Ford Fiesta, Honda Accord, Nissan Leaf, Cadillac CTS, Kia Rio, MINI Cooper Countryman, Audi A4, Ford Ranger, Honda Ridgeline, Dodge Ram Pickup 2500, Jeep Patriot, Chevrolet Equinox, Honda Pilot and Acura MDX.

First Year Depreciation ($)

This is the first year's estimated depreciation for the vehicle. As a general rule, new cars tend to lose more value in their first year of ownership versus used cars.

Total Depreciation ($)

This is the total depreciation, or decline in the car's market value, during the time the vehicle is owned. Keep in mind that this is an estimate based entirely on the age of the vehicle. Other factors such as the condition of the car and the number of miles on the vehicle can significantly impact its value.


Car Depreciation Calculator


Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Related Content

Are You a Financial Disaster? The Real State of Your Finances
Have you ever heard the saying, “If you don’t have a goal, then you’ll wind up hitting it with amazing accuracy.”? In other words, if you have no idea where you want to be in your future life, then it really doesn’t matter what you do because wherever you end up will match your goal…which apparently was never important enough for you to think about in the first place.
March 13th, 2024
11 Steps to Transform Your Finances (For Good This Time!!)
The money comes in…the money goes out…and at the end of each month you have very little to show for all your efforts. Then, after buckling down for a bit and saving here and there, it feels like you’ve gained a little traction…until another unexpected bill comes along and takes your bank account down to nothing (or probably more likely, racks your credit card back up to the max instead of down to zero like you were fighting for). It’s time to change this. Now is the time to transform your finances.
March 11th, 2024
5 Kiyosaki Hacks to Make You Rich: Are You Missing Out?
Have you ever considered the way you think about money could be the key to building your wealth?
February 22nd, 2024
50/30/20 Budget Spreadsheet: How To Use the 50/30/20 Rule
Do you ever run out of money before the end of the month? Or stare in disbelief at your dwindling balance and wonder where it’s all gone?
February 26th, 2024
Joe Biden’s Net Worth in 2024: President’s Path to a Millionaire
Although estimates vary, Forbes most recently put the US president’s net worth at $10 million — less than one-quarter of the $41 million some Republican supporters claimed the president was worth. Biden’s net worth had gone up since he assumed office, but rather than a pay increase, Forbes’s analysts say it had to do with his real estate portfolio growing in value in recent years.
January 31st, 2024

Contributors

Moneyzine 2024. All Rights Reserved.