How much value does a new car lose in year one?
The Direct Answer: 15-25% in Year One — the steepest depreciation in a car's lifetime, starting the moment it leaves the showroom. Typical cumulative: ~20% after 1 year, 35-45% after 3 years, 50-60% after 5 years. Rate varies by brand: reliable brands with available parts hold value much better.
💡 Turn This to Your Advantage: Buy at 2-3 years old (someone else paid the steep loss), sell before maintenance costs spike (typically 120-150K km) — this minimizes your true "Total Cost of Ownership," the right metric, not purchase price.
🧮 Calculate Your Car's Expected Value After Any Number of Years
Related Questions in Purchase Decisions:
Source: Modakharaty (modakharaty.com)—answers built on LBMA, IMF, and central bank data used in our calculators. Not personal investment advice.