How much does a new car depreciate year one?

Typically 15-35%, averaging 20-25%. Premium brands often hold value better.

When does depreciation slow down?

Years 1-3 are steepest. By year 5-7, about 60-70% of value is lost. After 10 years, depreciation becomes minimal in absolute terms.

What factors affect depreciation?

Brand reputation, reliability, fuel type, mileage, colour, specification, market demand, and overall condition all play a role.

Which cars depreciate the least?

Porsche, Land Rover Defender, Toyota Land Cruiser, and certain limited-edition models hold value best. In general, cars with strong brand loyalty, proven reliability, and high demand on the used market depreciate the least. Electric cars currently depreciate faster due to rapid technology improvements.

How does mileage affect depreciation?

Higher mileage accelerates depreciation. The UK average is about 7,400 miles per year. Cars with significantly above-average mileage for their age lose value faster, while low-mileage examples command a premium. The effect is strongest in the first 3 years.

CarCalcs

Depreciation Calculator

Estimate car value loss over time using reducing balance method.

Purchase Price

Years

Year 1 Depreciation

Year 2+ Depreciation

How We Calculate This

Uses reducing balance depreciation where a percentage of the remaining value is lost each year.

Formula

Value after year n = Previous value x (1 - depreciation rate)

Frequently Asked Questions

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Last updated: February 2026

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