Car Depreciation: How Much Is My Car Worth?

Written by Lauren Clifford

Edited by Amanda Push

Updated on:

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Key takeaways

Car depreciation happens when a car loses value over time. All cars lose value, but there are things you can do to slow the depreciation process.
New cars are worth around 20% less after one year and 60% less within five.
Cars depreciate at different rates depending on factors like the car’s mileage and condition, the manufacturer’s reputation and how much people are willing to pay for a particular model.

How much does a car depreciate per year?

A brand new car usually drops about 20% in value after one year. Within five years, it will be worth around 60% less than the price you paid.

These numbers are just estimates. How much your car depreciates will depend on factors like how desirable the particular car model is and how well you’ve maintained your car.

Here’s how it works for some of the most popular new and used car models.

New car depreciation

	2025 MSRP	Value after 1 year*	Value after 5 years*
Ford F-150	$38,810	$26,088	$18,035
Chevrolet Silverado	$37,000	$25,959	$20,128
Toyota RAV4	$29,250	$26,062	$20,305
Tesla Model Y	$48,990**	$34,362	$19,537
Honda CR-V	$30,100	$29,649	$20,170

*Values calculated using CarEdge depreciation calculator

**Not including Federal Tax Credit of $7,500

Used car depreciation

	Fair purchase price for 2020 model*	Value after 1 year**	Value after 5 years**
Tesla Model 3	$23,721	$22,845	$10,117
Chevrolet Equinox	$14,227	$12,980	$9,492
Nissan Rogue	$15,021	$14,495	$10,028
Ford Escape	$12,175	$11,762	$8,520
Ford Explorer	$17,521	$16,023	$11,156

*Prices calculated using Kelley Blue Book car value calculator

**Values calculated using CarEdge depreciation calculator

How does car depreciation work?

Once you buy a car and drive off the lot, depreciation is unavoidable. Your car is only worth what someone is willing to pay for it, and people pay less for used cars than new ones.

Here are the key factors that determine how quickly your car will lose value:

Model year: People are willing to pay the full manufacturer’s suggested retail price (MSRP) for a new ride, but older cars sell for less. Like all other machines, cars break down over time, and people want reliable transportation with the latest technology.
Make and model: If you have a popular car, you’re in luck. It’s a matter of simple supply and demand — the more people who want your model of car, the more value it has.
Mileage and maintenance: Your car’s resale value depends on how well you maintain it and how many miles you rack up. Cars with less mileage and records of regular maintenance will hold their value for longer.
Accident history: Accident-free cars fetch higher prices at auction because buyers are wary of cars that have had significant damage. While it’s possible to get a used car inspection to make sure it’s in good shape, consumers may pay more for a car with a clean vehicle history report to avoid the hassle.
Manufacturer reputation: Cars made by manufacturers with a reputation for reliability will have a better resale value.
Market conditions: Things entirely outside your control — like gas prices, supply chain issues and even global health crises — can influence car values. You can’t change market conditions, but if you’re deciding what car to buy, it’s smart to consider how the market might affect your car’s resale value in the future.

How do you calculate depreciation on a car?

To estimate your car’s value, you’ll need an internet connection and a few minutes to do some digging.

Comparing similar used cars

A basic search for vehicles of the same make, model and year on any used car website will give you a rough estimate of how much your car is worth in the current market. For the most accurate results, look for cars in similar condition with about the same mileage as yours.

This method won’t give you a precise number, but it’s quick. Plus, you won’t have to fill out forms or provide your contact information in exchange for the info you want.

Car depreciation calculators

Another option is to use a free car depreciation calculator from an online appraisal site like Kelley Blue Book or Edmunds. This will give you a customized estimate of how much your car is worth.

You’ll need your car’s vehicle identification number (VIN) in order to get the most accurate appraisal, so check for your VIN on your windshield, under your hood or in the driver’s side door jamb.

Online quotes

You can also get a real quote from a car-buying website like Carvana or CarMax. For this, you’ll fill out a quick online form and answer questions about the car’s features, condition and history.

If you’re looking to sell or trade in your car, online car-buying sites are a convenient option. Just know that you’ll likely get more money for your car by listing your car online and handling the sale yourself.

What are some cars that hold their value?

Cars hold their value when they’re less expensive to maintain and have a reputation for reliability.

In 2025, Kelley Blue Book named Toyota and Lexus as the car brands with the best overall car resale value. Here are their top picks for the least depreciating cars in 2025:

Car model	Average resale value after 5 years*
2025 Toyota Tacoma	64.1%
2025 Chevrolet Corvette	61.0%
2025 Toyota Tundra	60.9%
2025 Toyota 4Runner	60.0%
2025 Ford Bronco	57.0%

*Based on data from Kelley Blue Book

Frequently asked questions

New vehicles depreciate quickly, losing 20% of their value in the first year.

According to Carfax, the average car loses between $500 and $2,100 in value after an accident, depending on the severity of the crash.

According to a study by iSeeCars, electric vehicles lose their value at a faster rate than traditional vehicles. Their research also shows that luxury cars have fast depreciation rates — which makes sense, since people who want a high-end car might be less likely to settle for a used model.

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On this page

How much does a car depreciate per year?
How does car depreciation work?
How do you calculate depreciation on a car?
What are some cars that hold their value?
Frequently asked questions

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