Car Depreciation Calculator
Estimate how much your car will be worth in future years, with a full year-by-year value breakdown.
Depreciation rates are general estimates by fuel type. Actual resale value depends heavily on make, model, mileage, condition and market demand.
Vehicle Details
How Car Depreciation Is Calculated
This calculator uses a declining-balance method: a (usually larger) first-year depreciation rate is applied to new cars, then a steadier annual rate is applied to the reduced value each following year. For example, a £28,000 new petrol car losing 21% in year one is worth £22,120 - then loses 15% of that reduced value in year two, and so on.
Typical Depreciation by Fuel Type
| Fuel Type | Year 1 | After Year 1 |
|---|---|---|
| Petrol | 21% | 15%/yr |
| Diesel | 23% | 15%/yr |
| Hybrid | 19% | 13%/yr |
| Electric | 25% | 12%/yr |
Figures are general estimates - individual models vary widely.
Tips to Reduce Depreciation
- Choose makes/models known for strong resale value
- Keep mileage low and maintain a full service history
- Keep the car clean and well maintained
- Avoid heavy or unusual customisation
Frequently Asked Questions
New cars typically lose 15-35% of their value in the first year alone, and around 50-60% of their value by the end of year three. After that, depreciation usually slows to a steadier annual rate of around 10-15%. Exact rates vary a lot by make, model, mileage and condition.
Historically, some electric vehicles have depreciated faster in the first couple of years due to rapidly improving battery technology and new model releases pushing down used prices. However, this varies significantly by model and is narrowing as the EV market matures - always check specific model data rather than relying on averages.
New cars suffer the steepest drop in value the moment they are driven away from the dealership (sometimes called "drive-away depreciation"), followed by continued fast depreciation in year one. Used cars have already absorbed that initial hit, so they typically depreciate at a steadier, slower rate going forward.
Choosing a make and model known for strong residual values, keeping mileage low, maintaining a full service history, keeping the car in good condition, and avoiding heavy customisation can all help a car hold its value better than average.
This calculator applies a general declining-balance depreciation rate based on fuel type, which is useful for budgeting and comparison purposes. For a precise valuation of a specific make, model and mileage, use a dedicated vehicle valuation service or check current used listings for comparable cars.