Used vs New Car Depreciation Race
Used vs New Car Depreciation Calculator
What this calculator does
New cars depreciate faster. This calculator shows the value of a new car and a used car over 60 months.
The math, with a worked example
New car loses about 1% per month. Used car loses about 0.5% per month. The chart plots both curves. A $35,000 new car may be worth about $19,150 after 5 years. An $18,000 used car may be worth about $13,325.
Why this matters
Depreciation is the biggest single cost of a new car, and it's invisible until resale day. The curves make it concrete: $35,000 new becomes about $19,150 in 5 years, while the used car loses half as fast from a lower base.
Methodology and transparency
The chart applies about 1% value loss per month to the new car and 0.5% to the used one, compounding monthly for 60 months. Those flat rates are the simplification most likely to be wrong: real new-car depreciation is steepest in year 1 (the drive-off-the-lot drop) and varies widely by model, so treat the curves as the shape of the difference, not a resale quote for your VIN. Everything runs in your browser; no data is sent or stored.
Last reviewed: 2026-08-08
Common questions
Is this exact depreciation?
No. It is a simplified linear approximation. Real depreciation varies by brand and market.
Why does used hold value better?
The steepest depreciation happens in the first few years, which a used car has already experienced.