Estimate a new car's value after years of depreciation.
Depreciation compounds, so value is the purchase price times the annual retention factor to the power of the ownership years. New cars shed a large share of value in the first years, which is the main cost of buying new instead of lightly used.
Car Depreciation
Value = purchase price x (1 - annual depreciation%)^years
Value = purchase price x (1 - annual depreciation%)^years Depreciation compounds, so value is the purchase price times the annual retention factor to the power of the ownership years.
New cars shed a large share of value in the first years, which is the main cost of buying new instead of lightly used.
This calculator takes 3 inputs: Purchase price, Years owned, Annual depreciation. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.