Car Depreciation Calculator
Enter your purchase price, ownership period, and vehicle type to estimate depreciation. See year-by-year value and total loss over your ownership period.
Frequently asked questions
How much does a car depreciate in the first year?
A mainstream car typically loses around 20% of its value in the first year. Premium and luxury cars can lose 25% or more. Electric vehicles used to depreciate fastest, but improving battery technology and demand means many EVs now lose only around 10% in year one.
Which cars hold their value best?
Electric vehicles are now among the best at holding value, alongside popular mainstream models from Toyota, Honda, and similar brands. Premium SUVs from Land Rover and Porsche also tend to depreciate more slowly. Limited-edition and performance cars can appreciate in some cases.
Does mileage affect depreciation?
Yes, significantly. Higher mileage accelerates depreciation. This calculator uses a standard declining-balance model. A car covering 20,000 miles per year will typically be worth less than the same model covering 8,000 miles per year, all else being equal.
How is depreciation calculated?
This calculator uses a declining-balance method with a front-loaded first year. Each year's depreciation is calculated as a percentage of the current value (not the original price), which reflects how real-world values drop quickly initially then slow down.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.