Car Depreciation Calculator
See how much a typical car loses in value each year. Enter a purchase price or select a common model to see a full year-by-year depreciation breakdown.
Calculate Depreciation
New Price
£25,000
Value Now (0yr)
£25,000
-0.0%
Value at 10yr
£8,895
-64.4%
Total Loss
£16,105
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Depreciation Curve
Year-by-Year Depreciation Table
Full breakdown from new to 10 years old.
| Year | Age | Value | Loss That Year | Cumulative Loss | % of Original |
|---|---|---|---|---|---|
| New | 0 yrs(now) | £25,000 | - | - | 100.0% |
| Year 1 | 1 yr | £18,750 | -£6,250 | -£6,250 | 75.0% |
| Year 2 | 2 yrs | £15,938 | -£2,812 | -£9,062 | 63.8% |
| Year 3 | 3 yrs | £14,025 | -£1,913 | -£10,975 | 56.1% |
| Year 4 | 4 yrs | £12,903 | -£1,122 | -£12,097 | 51.6% |
| Year 5 | 5 yrs | £11,871 | -£1,032 | -£13,129 | 47.5% |
| Year 6 | 6 yrs | £10,921 | -£950 | -£14,079 | 43.7% |
| Year 7 | 7 yrs | £10,375 | -£546 | -£14,625 | 41.5% |
| Year 8 | 8 yrs | £9,856 | -£519 | -£15,144 | 39.4% |
| Year 9 | 9 yrs | £9,363 | -£493 | -£15,637 | 37.5% |
| Year 10 | 10 yrs | £8,895 | -£468 | -£16,105 | 35.6% |
Depreciation Rate Breakdown
Year 1
-25%
The biggest drop. A £25,000 car loses £6,250
Years 2-3
-12% to -15%
Still steep. After 3 years, roughly 44% of value is gone
Years 4-6
-8%
The rate slows. This is when used cars become good value
Years 7-10
-5%
Much gentler. Running costs matter more than depreciation
Years 11+
-3%
Minimal depreciation. Maintenance becomes the main cost
Sweet Spot
2-3 years old
Buy at 2-3 years to skip the steepest depreciation
Frequently Asked Questions
How much does a car depreciate in the first year?
On average, a new car loses around 25% of its value in the first year alone. A car bought new for £25,000 would typically be worth around £18,750 after 12 months. This first-year drop is the biggest single depreciation hit over the car's lifetime.
When does a car stop depreciating?
Cars never completely stop depreciating, but the rate slows significantly after about 8 to 10 years. Beyond this point, annual depreciation drops to around 3% to 5% per year. Some classic or rare cars can actually appreciate in value after reaching a certain age.
Which cars hold their value best?
Porsche and Toyota often hold their value better than average. Popular SUVs and cars with limited supply also depreciate less. Electric vehicles currently depreciate faster due to rapidly improving technology, though this may change as the market matures.
How can I reduce depreciation on my car?
Buy a car that is 2 to 3 years old to avoid the steepest depreciation. Keep mileage below average (7,400 miles per year in the UK), maintain a full service history, and avoid modifications. Choosing popular colours (black, white, silver) and high-demand models also helps retain value.
Is it better to buy new or used to avoid depreciation?
Buying a car that is 1 to 3 years old is usually the sweet spot for avoiding depreciation. You skip the harsh 25% first-year drop and the 15% second-year drop, while still getting a relatively modern car with manufacturer warranty remaining. A 3-year-old car has typically lost 40% to 45% of its new value already.
Related Calculators
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About this car depreciation calculator
This car depreciation calculator works by model (pick one of the common models above to pre-fill its new price) or by any purchase price you enter. It uses a typical depreciation curve that reflects how UK cars commonly lose value over time. The rates used (25% in year 1, 15% in year 2, 12% in year 3, 8% for years 4-6, 5% for years 7-10, and 3% thereafter) are a rule of thumb, not figures for any particular make or model.
Actual depreciation varies by make, model, mileage, condition, colour, and market demand. Brands such as Porsche and Toyota tend to hold value better, while French and Italian brands often depreciate faster. High-mileage cars lose more value, and popular models in desirable colours (black, white, grey) retain value better than unusual colours.
For an estimate for a specific vehicle, enter its registration plate above. The free check gives an estimated value range for that car, based on its make, model, age and mileage, alongside its DVLA and DVSA records.