Depreciation Rates: How Cars Lose Value and What You Can Do About It

When you drive a new car off the lot, it starts losing value immediately—that’s depreciation rates, the speed at which a vehicle loses its market value over time. Also known as vehicle value loss, it’s the silent cost of car ownership that hits harder than insurance or gas. Most cars drop 20% in the first year and up to 60% within five years. That’s not just a number—it’s thousands of dollars gone before you even think about selling.

Not all cars depreciate the same. used car worth, how much a vehicle retains in resale value after years of use depends on brand, reliability, demand, and even color. Toyotas and Hondas hold value because they’re known to last. Luxury brands like BMW or Mercedes drop faster because repairs are expensive and demand fades after the warranty ends. car ownership costs, the total money spent to keep a vehicle running, including depreciation aren’t just about fuel and oil changes. Depreciation is the biggest part—often bigger than your monthly payment.

What affects depreciation rates? Mileage is obvious, but so are maintenance records. A car with full service history keeps more value. Accidents? Even minor ones can slash resale value by 10–20%. Color matters too—neutral tones like black, white, or silver sell faster than bright green or purple. And don’t forget technology. Cars with outdated infotainment or no safety features lose value quicker than those with modern driver aids.

You can’t stop depreciation, but you can slow it down. Keep your car clean. Stick to the maintenance schedule. Avoid custom mods that turn off buyers. Drive it like you mean to sell it. If you plan to trade in or sell later, treat every dent and scratch like a dollar bill burning in your pocket.

That’s why posts here cover everything from used car total cost of ownership to how warranty claims and maintenance records affect resale. You’ll find real advice on which vehicles hold value, how to protect your investment, and what to avoid when buying used. Whether you’re trading up, selling privately, or just trying to understand why your car’s worth dropped so fast, this collection gives you the facts—not fluff.