How much value does a new car lose in year one?
Direct Answer: 15–25% in Year One — the steepest loss of a car's lifetime, partly from the lot. Typical curve: ~20% after 1 year, 35–45% after 3 years, 50–60% after 5 years. Depreciates faster or slower by brand—reliable names with available parts hold value far better.
💡 Turn it to your advantage: Buy at 2–3 years old (someone else paid the big loss), sell before maintenance costs spike (usually 120–150K km) — this shrinks your true "Total Cost of Ownership," the right metric, not purchase price.
🧮 Calculate Your Car's Expected Value After Any Number of Years
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Source: Modakharaty (modakharaty.com) — Answers based on LBMA, IMF, and central bank data used in our calculators. Not personal investment advice.
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