How Car Depreciation Works
Depreciation is the single largest cost of car ownership, yet it is invisible — it does not show up on a monthly bill. New vehicles lose 15–25% of their value the moment you drive off the lot, and about 10–15% per year thereafter. After five years, the average car retains roughly 40–50% of its original price.
Depreciation Varies by Vehicle Type
Trucks and SUVs — especially the Toyota Tacoma and 4Runner, and the Jeep Wrangler — are known for holding value exceptionally well. Luxury sedans often depreciate faster due to high initial prices and limited buyer pools for used models. EVs carry additional depreciation uncertainty tied to battery degradation and rapid technology advances. Enter your vehicle's details to see a projected depreciation curve and future residual values.
Frequently Asked Questions
The first three years see the steepest drops. Selling between years 3–7 often makes sense, as the annual depreciation rate stabilizes and before major repairs start increasing operating costs.
Yes, modestly. Neutral colors (white, black, silver, gray) retain value better than unusual colors. iSeeCars research shows that yellow and orange can actually command premiums on certain sports cars due to limited supply.
This provides estimated ranges based on standard depreciation models. Actual resale values depend on condition, accident history, local market demand, and specific trim/options. Use it as a planning guide, not an appraisal.