How Fast Do Cars Depreciate? By Year & Vehicle Type (2026)
A new car can lose 15-20% of its value the moment you drive it off the lot. Here's exactly how depreciation works, which cars lose value fastest, and how to use this to your advantage.
A new car loses about 20% of its value in the first year, then roughly 10-15% per year for years 2-5. By year 5, the average car has lost about 50-60% of its original value. Trucks and certain SUVs hold value significantly better than sedans.
Use our Car Depreciation Calculator for instant, personalized results.
Car Depreciation Rate by Year
| Year | Approx. Value Remaining | Value Lost That Year |
|---|---|---|
| New (off lot) | 100% | — |
| 1 year old | 80% | ~20% |
| 2 years old | 66% | ~14% |
| 3 years old | 57% | ~9% |
| 5 years old | 42% | ~7-8%/yr |
| 10 years old | ~23% | ~5%/yr |
Which Cars Hold Their Value Best?
Trucks (especially Toyota Tacoma, Ford F-150) and certain SUVs consistently rank among the best for resale value. Luxury vehicles often depreciate the fastest — a $70,000 luxury sedan can lose $30,000+ in the first 3 years.
How to Use Depreciation to Your Advantage
Buying a 2-3 year old car lets someone else absorb the steepest depreciation curve while you still get a relatively modern, warranted vehicle. A car that sold new for $35,000 might be available for $20,000-22,000 with 25,000-35,000 miles — still 80%+ of its useful life remaining.
Use our Car Depreciation Calculator — instant results, no signup required.