Car Depreciation Calculator

Buying Smarter: Using Depreciation Data to Reduce Lifetime Vehicle Cost

The total cost of car ownership is poorly understood because depreciation is invisible until you try to sell. Using depreciation benchmarks to choose vehicles and timing can save $10,000–$20,000 over a decade of driving.

Best Resale Value Vehicles (2026)

Strong demand, brand loyalty, and supply constraints create vehicles that retain exceptional value.

Paying a $2,000–$4,000 premium for a high-retention vehicle often saves money over five years because the lower depreciation more than offsets the higher purchase price.

The Two-to-Three Year Sweet Spot

New car depreciation is fastest in years one through three, then slows significantly. Buying a two-year-old vehicle from the high-retention list above gives you a nearly new car, often with certified pre-owned warranty, while someone else absorbed the steepest depreciation. The two-year-old premium over a five-year-old vehicle is typically $4,000–$8,000, but the mechanical risk difference is substantial — especially for European luxury brands where out-of-warranty repair costs average $3,000–$6,000 annually.

Cost Per Mile: The Only Fair Comparison

A $15,000 used car with $4,000 in annual repairs, driven 8,000 miles per year, may cost more per mile than a $35,000 reliable vehicle driven 15,000 miles. Total five-year cost divided by total miles gives a fair comparison across vehicles. Reliable mainstream brands at moderate mileage almost always win this analysis against cheap-purchase-price vehicles with high maintenance costs.

For planning your vehicle purchase within your overall budget, use our Savings Goal Calculator.