X

Car Depreciation Calculator

Car Depreciation Calculator

The eCalculator car depreciation calculator is a useful tool that allows you to approximate the worth of your car after it is used.

You likely know that a car’s value drops radically just after the time you buy it, depreciating with each passing year.

You can use this vehicle depreciation calculator to either determine how much your car is valued or verify whether the cost for a used car you plan to buy is fair.

What is Depreciation?

In a nutshell, depreciation is the reduction in value. It is the value that decreases once an item has been bought and is no more brand new. Consider this, and you bought a new car for $25,000. After a few years have passed, the car is not worth the same money it was worth when you bought it.

You’d likely agree that re-selling it for $25,000 again would not be fair enough as instinctually, you already know that it’s not worth its original price anymore and the buyer would probably know that too. This is why things that are used sell for less than their original values.

It is called depreciation when your car starts losing its value in money once you buy it and then use it. The more you use it, the more the reduction in value.

The primary reasons for this depreciation are car design, mileage, wear and ageing. Going for even formal definition for depreciation, it can be considered as the process of calculating the price of an asset/item over its lifespan.

How to Calculate Car Depreciation?

Let's suppose you are offered a deal where you can buy a five-year-old car for $10,000, and you want to determine its original value when it was brand new and the subsequent depreciation.

All you have to do is, input the value “5 years” into the “current vehicle age” box, the currency “$” in the “currency type box” and the value “10,000” into the “purchase price box” in our calculator. Then select the relative depreciation rate whether high, low, average or custom, which varies with regions and can be determined through car depreciation chart. After these values are provided for, press “Calculate” and our car value estimator would determine the following for you based on car depreciation formula.

The average rate of depreciation Example

First-year depreciation $1,872.00
Total depreciation $0.00
Total depreciation percentage 0.00 %
Value of the vehicle at the end of the ownership period $12,000.00

 

Let’s now suppose you have plans of your own. In that, you want to know how much the value be further depreciated in your ownership, in case you want to resell the car after a specific number of years.

With our depreciation calculator for car, you can determine that too. All you have to do is just put the number of years you plan to own the car in the related box.

Let’s say; you want to own the car in question for 5 years. Just input “5” in the “years you will own the car” box along with the rest of the values given in the previous example, you’d get the following results:

The average rate of depreciation

Average annual value lost         $4,576.24

First-year depreciation  $1,872.00

Total depreciation            $6,860.82

Total depreciation percentage 57.17 %

Value of the vehicle at the end of ownership period       $5,139.18

That’s it. Our tool is easy to use.

Additionally, it is a cost free calculator, feel free. Here at eCalculator, we focus on facilitating convenience for our users. This is why, our tool does not require users to subscribe or register to our site.

Car ownership costs

It is general knowledge that buying a car is quite an expense. In 2018, the industry-wide approximated average price of a new car was roughly around $36,000.

Let’s put aside by which means you buy a car, you also need to understand that other than the cost of a car acquisition, using it comes at certain costs too.

The primary ones among these are as followed:

  • Costs of Registration,
  • Vehicle insurance,
  • taxes (most significantly, the sales tax),
  • fuel prices,
  • Regular maintenance (tuning or service),
  • Parking (throughout the year).

Also, bear in mind that a particular, indirect charge of having a car is also its depreciation.

However, these expenses are tolerable and worth owning a car. Some of these additional costs are only one time expenses while others are insignificant, like parking.

 

Need Custom Calculator?

With Over Online Tools, eCalculator.co Helping Millions of Students, Teachers, Businessmen & Nutritionists Every Month.

Related Articles