How to Estimate Used Car Fair Market Value
Used car pricing is driven by vehicle age, mileage, original price, condition, and accident history. This estimator applies standard depreciation curves and mileage adjustments to provide a realistic price range for buying or negotiating.
Depreciation is steepest in the first year — a new car typically loses 15–20% of its value in year one. By year three, most vehicles retain about 60% of original value. After five years, it drops to around 50%.
Mileage above 100,000 miles tends to reduce value noticeably, while low-mileage examples can command a premium. For real-world pricing, cross-reference with current listings on CarGurus, KBB, or Autotrader.
Frequently Asked Questions
Age, mileage, condition, accident history, and original price are the main factors. Depreciation is fastest in years 1–3 and slows significantly after year 5.
Low-mileage vehicles typically command 8–10% more. High mileage (150k+ miles) can reduce value by 30% or more compared to average-mileage examples of the same age and model.
Dealers price higher (near the upper range) but offer warranties and financing. Private sales are typically closer to fair value but require more due diligence on condition and history.