The moment you drive a new car off the lot, it starts losing value. Here's exactly how much, and what you can do about it.
Most new cars lose 15–25% of their value in the first year. On a $35,000 car, that's $5,250–$8,750 in lost value in year one. Part of this drop happens the instant you take delivery — simply because the car is now "used."
After 5 years, the average car retains 37–45% of its original value.
Buying a 1-year-old car instead of brand new lets someone else absorb the steepest depreciation. You get essentially the same car for 15–25% less.
Three factors drive first-year depreciation: the "new car premium" disappears once the title transfers, the car enters the used-car market where buyers expect a discount, and the factory warranty is partially consumed.
Toyota and Honda vehicles consistently show the lowest depreciation. The Toyota Tacoma, Honda Civic, and Toyota 4Runner are known for retaining value exceptionally well. Luxury and exotic cars depreciate much faster.
See what your specific car will be worth in 1–10 years.
Depreciation Calculator →