Car Depreciation Calculator UK: New and Used Cars
Estimate future car value loss using your purchase price or current value, vehicle age, ownership period and annual mileage. Compare an illustrative age-based curve with your own annual rate. This planning tool is not a live vehicle valuation.
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Depreciation measures value loss, while finance instalments measure cash paid. For ownership cost, compare depreciation plus interest, fees and running costs. Do not add the principal part of a loan payment to depreciation as a separate cost.
For a used car, enter the price you actually pay, not its original new list price. For a car you already own, use a current value estimate and its current age. Check possible resale prices against similar vehicles before relying on a scenario.
How much could a £25,000 car lose in three years?
In the default new-car scenario at 8,000 miles a year, the end value is £11,050: a £13,950 loss, averaging £388 a month. This uses illustrative rates of 35%, 20% and 15% on the remaining value, not a UK market average.
Vehicle Details
Rates follow vehicle age each year. These are editorial assumptions, not a live valuation.
Used for cost per mile. Preset mileage adjustments are illustrative; see the methodology below.
Total Depreciation
56% of starting value lost in this scenario
Average Annual Depreciation
£4,650
£388/month
Cost Per Mile
58.1p
Over 24,000 miles
Scenario End Value
£11,050
After 3 years
44% retained
Year-by-Year Breakdown
| Year | Rate | Loss | End value |
|---|---|---|---|
| 1Age 0 | 35.0% | £8,750 | £16,250 |
| 2Age 1 | 20.0% | £3,250 | £13,000 |
| 3Age 2 | 15.0% | £1,950 | £11,050 |
Planning estimate: This scenario averages £388/month in value loss. It is not a monthly bill or a sale quote. Compare it with running costs and finance interest; do not add loan principal repayments to depreciation as if they were separate economic costs.
What this depreciation curve means for you
The age-based scenario reduces its assumed percentage as the car gets older. Actual loss varies by model, purchase price, mileage, condition and market demand. Comparing an older car with a new one also means comparing repair risk, warranty and finance terms.
Use the yearly breakdown to budget a range of outcomes. Try a custom rate supported by comparable vehicles and check what you would receive after any finance settlement. The calculator does not identify a guaranteed best time to sell.
How to calculate car depreciation
Car depreciation is the difference between the value you start with and the value when you sell. For a used car, start with its actual purchase price. For a car you already own, start with a current value estimate and use its current age to model future loss.
Total loss = starting value − resale value. Average annual loss = total loss ÷ years owned.
For example, buying at £25,000 and selling for £16,000 after three years gives £9,000 loss, £3,000 a year or £250 a month. Over 24,000 miles that is 37.5p per mile. This arithmetic example uses an assumed sale price; it does not predict one.
Annual percentages compound: a £25,000 car losing 20% then 15% ends at £17,000 (£25,000 × 0.80 × 0.85). Subtracting both percentages from the original price would incorrectly give £16,250.
New and used car depreciation: worked scenarios
Each example starts at £25,000, covers three years and assumes 8,000 miles a year. Only the age changes. Equal starting prices illustrate the model; they do not imply that these vehicles are equivalent purchases.
| Age at start | Annual rates | End value | Value lost |
|---|---|---|---|
| 0 years | 35%, 20%, 15% | £11,050 | £13,950 |
| 3 years | 12%, 10%, 8% | £18,216 | £6,784 |
| 5 years | 8%, 7%, 6% | £20,107 | £4,893 |
Older-car scenarios use lower percentage losses, but that does not establish the cheapest purchase. Repairs, insurance, fuel, finance terms and the price you actually negotiate also matter. Use the car ownership calculator for a broader budget.
Calculator methodology and assumptions
The age-based model applies a rate using the vehicle's age at the start of each projected year. Ages 0–12 use 35%, 20%, 15%, 12%, 10%, 8%, 7%, 6%, 6%, 5%, 4%, 4%, 3% respectively; ages 13 and above continue at 3%. The purchase/current value is the starting balance, so previous depreciation is not deducted again.
These rates are editorial planning assumptions. They are not supplied by the AA, MoneyHelper or a valuation database. The external sources below support the general explanations of depreciation and budgeting, not this exact curve.
Manual profile rates
- new: 35%, 20%, 15%, 12%, 10% across ownership years 1–5; the final rate repeats thereafter.
- nearly-new: 18%, 15%, 12%, 10%, 8% across ownership years 1–5; the final rate repeats thereafter.
- used-3-5: 12%, 10%, 9%, 8%, 7% across ownership years 1–5; the final rate repeats thereafter.
- used-5-10: 8%, 7%, 6%, 6%, 5% across ownership years 1–5; the final rate repeats thereafter.
- older: 5%, 5%, 4%, 4%, 3% across ownership years 1–5; the final rate repeats thereafter.
Manual profiles override the age-based curve. A custom rate stays constant each year and can range from 0% to 100%; it receives no mileage adjustment.
Preset mileage adjustment: above 12,000 miles/year, add (miles − 12,000) ÷ 5,000 percentage points, capped at 3. Below 6,000, subtract (6,000 − miles) ÷ 2,000 points, capped at 2. Preset rates have a 1% floor. These are illustrative adjustments, not an estimate of a particular odometer's market penalty.
Amounts display to the nearest pound; percentages are applied before rounding. Average monthly loss is annual average loss divided by 12. Zero mileage gives no per-mile result. The tool excludes appreciation, inflation, accidents, condition, service history, existing mileage, specific EV battery condition and changes in used-car demand.
Check an expected resale value before buying
Compare listings for the same model, trim and similar condition at the age and mileage you expect to sell. Advertised prices can differ from achieved sale prices, trade-in offers and dealer buying quotes. Review the scenario with more than one plausible rate rather than treating its end value as guaranteed.
A lower depreciation percentage does not necessarily mean a lower cost in pounds. A 10% loss on £40,000 is £4,000; 15% on £20,000 is £3,000. Compare the total ownership cost and the cash you need, including any finance settlement.
For cash flow, budget actual finance instalments and any balloon payment. For economic ownership cost, compare depreciation plus interest/fees and running costs. Counting both principal repayments and depreciation as separate costs overstates the loss. A lease comparison should include the initial rental, all monthly rentals, mileage limits and end-of-contract charges.
Compare leasing and buying, estimate fuel costs or explore insurance assumptions.
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