The variables used in our online calculator are defined in detail below, including how to interpret the results.
Purchase Price of Car ($)
This is the purchase price of the car that you have negotiated with the dealership or private seller. This figure should not include rebates or trade-in allowances.
Current Vehicle Age (Years)
This is the current age of the vehicle your thinking about buying. For new cars, simply enter zero. For used cars, round up or down to the nearest whole number.
Time the Vehicle is Owned (Years)
This is an estimate of the number of years you will own the car.
Final Vehicle Age (Years)
This is the age of the vehicle at the end of the depreciation cycle. This value is simply calculated by adding the current vehicle age to the time the vehicle is owned.
Rate of Depreciation (Low, Average, High)
This calculator provides three estimates of car depreciation rates: low, average, and high. According to published sources such as Kelley Blue Book and Edmunds.com, automobiles
that have experienced low rates of depreciation (slower declines in value) include the Ford Fiesta, Honda Accord, Nissan Leaf, Cadillac CTS, Kia Rio, MINI Cooper Countryman, Audi A4, Ford Ranger, Honda Ridgeline, Dodge Ram Pickup 2500, Jeep Patriot, Chevrolet Equinox, Honda Pilot and Acura MDX.
First Year Depreciation ($)
This is the first year's estimated depreciation for the vehicle. As a general rule, new cars tend to lose more value in their first year of ownership versus used cars.
Total Depreciation ($)
This is the total depreciation, or decline in the car's market value, during the time the vehicle is owned. Keep in mind that this is an estimate based entirely on the age of the vehicle. Other factors such as the condition of the car and the number of miles on the vehicle can significantly impact its value.
Car Depreciation Calculator - Copyright © 2005 - 2015 Money-Zine.com (Last Reviewed on January 16, 2015)
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.