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Depreciation Over Time
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Figure out what your car is actually worth. Because the moment you drive off the lot, your car starts losing value—and it's the biggest cost of car ownership that nobody talks about.
Current Value
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Total Lost
$0
Depreciation
0%
Per Mile Lost
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| Year | Value | Annual Loss | % Lost |
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Fill in your vehicle details above and see how much value you've lost.
Most people think gas or insurance is their biggest car expense. Nope. Let's break down the real costs of owning a $35,000 car for 7 years:
That's $2,857 per year. It's silent. It's invisible. But when you go to sell or trade in, boom—reality hits.
Total annual cost: $7,457 — and depreciation is 38% of that. You feel the gas bill. You feel the insurance. But depreciation? It's the one that sneaks up on you.
$40,000 new car → worth $28,000 after 2 years
Your loss: $12,000 (30% depreciation)
That fancy new car smell? It costs you $500/month in invisible depreciation.
$28,000 used car → worth $22,000 after 2 more years
Your loss: $6,000 (21% depreciation)
You save $6,000 upfront and lose half as much value. Someone else ate the new-car depreciation hit.
The truth: Dealerships love talking about monthly payments because it hides the real cost. A new car loses more value in the first year than most people spend on gas and insurance combined.
Not all cars depreciate equally. Some hold value like they're made of gold. Others lose it faster than ice cream on a summer day.
Because the moment it's sold, it's "used." Supply exceeds demand for used cars, and new features come out constantly. Plus, dealers need profit margins. It's basic economics.
Absolutely. Every mile over 12,000/year costs you about $0.10-$0.15 in resale value. Drive 20,000 miles/year instead of 12,000? You're losing an extra $800-$1,200/year in value.
There's a point where maintenance costs exceed depreciation savings. For most cars, this happens around 10-12 years or 150,000 miles. Keep if it's ultra-reliable (Toyota/Honda) and you can DIY repairs.
Usually yes. Dealers offer 10-20% below market value for their profit margin. Private party gets you $2,000-$4,000 more, but it takes 2-4 weeks. Most people should do it if they're not in a rush.