Free Vehicle Depreciation calculator with clear step-by-step results.
Applies a steep first-year drop followed by a lower geometric rate, which matches how vehicles actually lose value - the largest single loss happens the moment the car is registered. Expressing the total per kilometre puts depreciation on the same footing as fuel.
Value after n years
Value = price x (1 - first year drop) x (1 - later rate)^(years - 1)
Depreciation per kilometre
Per km = total depreciation / (annual distance x years)
The new-car premium disappears on registration, and warranty and finance incentives that supported the new price do not transfer. Twenty percent or more is normal.
Models with constrained supply, strong reliability records and low option-heavy specification. Buying at two to three years old avoids most of the steepest loss.