True cost of ownership
What is your car
actually costing you?
The sticker price is one thing. Depreciation is what the car costs to own over time — and most buyers never see that number. Enter your vehicle below to see the full picture.
Depreciation explained
What is car depreciation?
Depreciation is the difference between what you paid for a car and what it's worth later. A new $40,000 vehicle might be worth $28,000 in three years — that $12,000 gap is the cost of ownership beyond fuel, insurance, and maintenance.
Why does year one hurt the most?
New cars lose the most value immediately after purchase — sometimes 15–25% in the first year alone. This reflects the premium you pay for being the first owner, the moment the car becomes 'used,' and the psychological discount buyers apply to pre-owned vehicles.
Which vehicles hold value best?
Pickup trucks and some SUVs historically hold value better than sedans and luxury cars. Japanese brands like Toyota and Honda tend to depreciate more slowly than European luxury brands. Electric vehicles vary widely — some models have high depreciation due to battery uncertainty, while popular models in tight supply hold value better.
How do I minimize depreciation?
Buy used — let the first owner absorb the steepest drop. Look for vehicles with strong resale reputations. Keep mileage reasonable. Maintain the vehicle. And avoid luxury-brand vehicles unless you plan to keep them well past the depreciation curve.