Car Depreciation Calculator
Calculate the future value of your car, total depreciation, and annual value loss based on purchase price, age, and mileage.
Car Depreciation & Value Estimator
Calculate how much value your vehicle will lose over time
The total amount paid for the car, including any optional extras.
New cars typically lose 15% to 25% of their value in the first 12 months.
The average yearly loss in value after the first year (usually 10% – 20%).
How many years into the future you want to calculate the car’s value.
Deduct a flat amount for expected excess mileage or wear and tear.
Depreciation Estimate
Projected Vehicle Value & Loss
Enter your vehicle details and click Calculate Value Loss to see your estimated future car value and depreciation.
Average Car Depreciation by Vehicle Age
Typical percentage of original value retained and lost for an average UK car over the first 10 years. Based on a 20% first-year drop and 15% annual depreciation thereafter.
| Vehicle Age | Value Retained | Total Depreciated | Annual Loss |
|---|---|---|---|
| Brand New | 100.0% | 0.0% | – |
| 1 Year Old | 80.0% | 20.0% | 20.0% |
| 2 Years Old | 68.0% | 32.0% | 12.0% |
| 3 Years Old | 57.8% | 42.2% | 10.2% |
| 4 Years Old | 49.1% | 50.9% | 8.7% |
| 5 Years Old | 41.8% | 58.2% | 7.3% |
| 6 Years Old | 35.5% | 64.5% | 6.3% |
| 7 Years Old | 30.2% | 69.8% | 5.3% |
| 8 Years Old | 25.7% | 74.3% | 4.5% |
| 9 Years Old | 21.8% | 78.2% | 3.9% |
| 10 Years Old | 18.5% | 81.5% | 3.3% |
Car Depreciation FAQ
Everything you need to know about vehicle depreciation, value retention, and selling your car in the UK.
Car depreciation is typically calculated using a compound percentage rate. In the UK, a new car typically loses 15% to 20% of its value in the first year, and then around 10% to 15% per year for the next few years. The formula is: Future Value = Purchase Price × (1 – First Year Rate) × (1 – Annual Rate)^(Years – 1). Mileage, condition, and market demand also significantly impact the actual depreciation.
The average car in the UK loses about 20% of its value in the first year and roughly 10% to 15% in each subsequent year. After three years, a typical car will have lost around 40% to 50% of its original purchase price. However, this rate varies heavily depending on the make, model, fuel type, and overall market conditions.
Historically, electric vehicles (EVs) have depreciated faster than petrol or diesel cars due to rapid advancements in battery technology, range improvements, and higher initial purchase prices. However, as the EV market matures and battery lifespans increase, the depreciation gap is narrowing. Some popular, affordable EVs now hold their value much better than early models did.
Mileage is one of the most significant factors in car depreciation. The average UK driver does about 7,000 to 10,000 miles per year. If your mileage is significantly higher than this average, your car will depreciate faster because buyers perceive high-mileage cars as having more wear and tear, leading to potential maintenance issues. Conversely, low-mileage cars often retain a higher percentage of their value.
Cars that hold their value best in the UK typically include small, efficient city cars, popular SUVs with strong reliability records, and certain premium brands like Porsche. Cars with low running costs, high reliability scores, and strong demand in the used market tend to depreciate the slowest. Conversely, luxury saloons and large executive cars often suffer the steepest depreciation.
The steepest drop in a car’s value occurs in the first year (up to 20-30%). To minimise the impact of depreciation, it is generally best to keep a car for at least three to four years. After the initial steep drop, the depreciation curve flattens out. Selling a car just before a major service is due, or before it hits a high-mileage threshold (like 60,000 or 100,000 miles), can also help maximise its resale value.
You cannot completely stop a car from depreciating, as it is a natural consequence of age and wear. However, you can minimise the rate of depreciation by keeping the car in excellent condition, maintaining a full service history, fixing minor cosmetic damage promptly, and keeping the mileage as low as reasonably possible. Choosing a car with a proven track record of holding its value is the most effective way to reduce depreciation from the start.