GarageCalc 
How the estimate works
The model applies a first-year drop and a steady percentage decline of the remaining value each year after. Presets are illustrative assumptions, not measured rates for market segments. Use custom rates to explore alternatives. See the annual car depreciation guide for a worked table and the difference between a historical market benchmark and a forecast.
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. Compare the modeled loss with actual purchase offers and plausible resale values, then add your other ownership expenses. 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?
There is no universal annual rate. This calculator defaults to an illustrative 20 percent first-year loss and 12 percent of remaining value in later years, leaving about 48 percent after five years. Those rates are scenario assumptions, not measured market averages. Use comparable vehicle data to choose your own rates.
What does the slower-loss preset mean?
It applies a 15 percent first-year loss and 9 percent of remaining value each later year. It is an alternative scenario for comparison, not a prediction for a specific brand or model.
What does the faster-loss preset mean?
It applies a 25 percent first-year loss and 16 percent of remaining value each later year. Use it to explore the effect of weaker resale values; the calculator does not assign that rate to a market segment.
Is depreciation really the biggest cost of owning a car?
It can be a major cost, but the answer depends on purchase price, resale value, ownership period and other expenses. Compare the modeled loss with fuel, insurance, maintenance and financing costs for your situation.