Estimate your vehicle's current value, total depreciation, and cost of ownership per mile.
Quick Answer:A new car loses roughly 20% of its value in year one and about 60% over 5 years. A $35,000 car purchased new is worth approximately $14,000 after 5 years with average mileage and good condition.
Estimated Current Value
Calculating... after depreciation
Total Depreciation
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Depreciation %
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Avg Annual Depreciation
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Cost Per Mile (Depr.)
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In 2026, the sweet spot for used car value is typically the 2-3 year mark, where the steepest depreciation has already occurred. Buying a certified pre-owned vehicle that is 2-3 years old can save you 35-40% off the original MSRP while still getting a car with modern safety features and remaining factory warranty. Keeping your car well-maintained and under average mileage can add 5-10% to its resale value.
A new car typically loses about 20% of its value in the first year, 15% in the second year, and 10-12% per year after that. By year 5, most cars have lost about 60% of their original value. After year 5, depreciation slows to about 6-8% per year.
The biggest factors are age, mileage, condition, brand reputation, and market demand. Cars driven significantly more than 12,000 miles per year depreciate faster. Luxury vehicles often depreciate faster in dollar terms but some brands like Toyota and Honda hold value better due to reliability reputation.
In 2026, vehicles that hold their value best include Toyota Tacoma, Jeep Wrangler, Porsche 911, Toyota 4Runner, and Tesla Model Y. Trucks and SUVs generally depreciate less than sedans. Electric vehicles from established brands are also holding value better as charging infrastructure improves.