How is car depreciation calculated?

Cars typically lose around 25% in the first year, then the rate of depreciation slows each year. By year 3, a car has often lost 45-50% of its value. Factors like mileage, condition, service history, fuel type, and desirability all affect the actual rate. This calculator uses average UK depreciation curves adjusted for these factors.

What factors affect a car's value most?

The biggest factors are age and mileage. After that, condition, full service history, fuel type (diesel values dropping due to emissions concerns), colour (unusual colours lose value), number of previous owners, and brand desirability all play a role. Cars with full dealer service history typically retain 5-10% more value.

How can I slow my car's depreciation?

Keep mileage reasonable (under 10,000-12,000 miles per year), maintain full service history, keep the car in excellent condition, choose popular colours (black, white, grey), and choose models known for reliability. Avoiding modifications also helps retain value, as does choosing a well-regarded brand.

Is this an exact valuation?

This calculator provides an estimate based on average depreciation curves. Actual market values depend on supply and demand, specific model popularity, optional extras, and local market conditions. For an accurate valuation, check services like Auto Trader, CAP, or Glass's Guide, or get a dealer appraisal.

Why do diesel cars depreciate more now?

Diesel values have been falling since the VW emissions scandal in 2015 and the introduction of Clean Air Zones. Many UK cities are introducing charges for older diesels, and the government has signalled a move away from fossil fuels. This has reduced demand and increased depreciation for diesel models.

CarCalcs

Car Value Calculator — Estimate Current Worth

Estimate your car's current market value based on age, mileage, condition, and service history.

Original Purchase Price

Amount in pounds sterling

Age

Age in years

Current Mileage

Current odometer reading in miles

Condition

Service History

Service history

Fuel Type

Fuel type

How We Calculate This

How The Value Is Estimated

This calculator applies a multi-factor depreciation model:

Base depreciation: Standard curve (25% year 1, slowing each year)
Mileage adjustment: High mileage (>15k/year) adds depreciation; low mileage (<8k/year) retains value
Condition: Excellent condition retains 5% more; poor condition loses an extra 12%
Service history: Full history retains 3% more; no history loses 7%
Fuel type: Diesels depreciate slightly more; hybrids retain value better

Estimated value = Purchase price x (1 - total depreciation rate)

Frequently Asked Questions

Related Calculators

Insurance Group Calculator

Estimate your car's insurance group and understand what affects it.

No Claims Discount Calculator

Calculate how much your no claims bonus saves on your premium.

Gap Insurance Calculator

Calculate the gap between your car's value and finance outstanding.

Car Loan Calculator

Calculate monthly payments, total interest, and total cost for a car loan.

PCP Calculator

Calculate PCP monthly payments, total cost, and optional final payment.

Last updated: February 2026

All calculations are estimates. Actual figures may vary based on driving conditions, vehicle specifications, and other factors.