Work out your car's depreciation
How much does a car depreciate each year?
A car loses most of its value in its first year, then less each year after. The table shows how much of its price a car keeps at each age on the three curves this calculator uses.
| Age | Holds its value well | Typical car | Loses value fast |
|---|---|---|---|
| 1 year | 85% | 73% | 65% |
| 2 years | 78% | 63% | 52% |
| 3 years | 72% | 54% | 42% |
| 4 years | 64% | 48% | 37% |
| 5 years | 57% | 43% | 33% |
| 6 years | 51% | 39% | 30% |
| 8 years | 42% | 31% | 24% |
| 10 years | 34% | 25% | 19% |
On the typical curve, a £20,000 new car is worth about £10800 after 3 years and £8600 after 5.
How this calculator works
We don't hold used-car prices, so the calculator doesn't pretend to value your car. It applies these yearly rates, from published UK figures, to the price you enter:
| Year of the car's life | Holds value | Typical | Fast | Based on |
|---|---|---|---|---|
| Year 1 | 15% | 26.7% | 35% | The average first-year loss of the UK's 100 most in-demand new cars, 26.7% (Leasing.com, 2026); 15% to 35% is the range UK guides give |
| Years 2 and 3 | 8% | 14% | 20% | The AA's average used prices at one and three years old: the best-holding models lost about 15% over the two years, the worst about 36% |
| Years 4 and 5 | 11% | 11% | 11% | The same AA figures from three to five years old |
| Year 6 on | 10% | 10% | 10% | Our assumption: there is no published average for older cars, whose value depends mostly on condition and mileage |
For a car you already own, only the years still ahead of it count: a 4-year-old car is past its steepest drop. Mileage picks the curve we point to: well above the model's average (from our MOT data, 492,751 vehicles), the fast curve; well below it, the slow one.
Sources: Leasing.com via Motoring Research, 6 May 2026: average first-year depreciation of the UK's 100 most in-demand new cars; The AA, "Crash landing": average used prices of popular models at one, three and five years old.
What makes a car lose value faster
- High mileage for its age, and gaps in the service history.
- An insurance write-off (Cat S or Cat N) on record: such cars usually sell for much less. Check with our write-off check.
- Outstanding finance the seller hasn't settled, which can make the car the lender's: see the outstanding finance check.
- Many previous keepers, a clocked mileage or a poor MOT history: our free MOT history check shows the mileage at every test.
- Model reputation: models with a high MOT failure rate tend to be in less demand. Compare models on our MOT and reliability stats by model.
Related calculators
- Car running costs calculator: add depreciation to fuel, insurance, tax and servicing for the cost a month and a mile.
- Car tax calculator: how much road tax a car pays.
Check a used car before you agree a price
A write-off, outstanding finance or a mileage discrepancy can cut a car's value by thousands. The free check shows the MOT history and mileage; the full report adds finance, write-off and stolen checks and the previous keepers.
See what the full report covers in the sample car history report.
Frequently asked questions
How much does a car depreciate per year?
Most in the first year: the average new car lost 26.7% of its value in its first 12 months in a 2026 study of the UK's 100 most in-demand new cars. After that the yearly loss slows, to roughly 8% to 20% a year in years two and three and about 11% a year in years four and five, depending on the model.
How do I calculate my car's depreciation?
Enter what you paid (or what the car is worth now), its age and how long you'll keep it. The calculator applies published UK depreciation rates for each year of the car's life and shows the value at the end of each year, the amount lost and the cost a month. The method and sources are listed under the calculator.
How much will my car be worth in 3 years?
On the typical curve, a car bought new keeps about 54% of its price after 3 years; one that holds its value well about 72%, and one that loses value fast about 42%. For a used car the yearly rate is lower, because the steepest drop has already happened.
Does mileage affect depreciation?
Yes. A car that covers more miles than average is usually worth less than the same car with low miles, so pick the faster curve if you drive a lot more than the UK average. Our MOT data puts the average at about 7,500 miles a year.
Which cars hold their value best?
Cars in demand on the used market, with a reputation for reliability, tend to lose value more slowly. Our make and model pages show each model's MOT pass rate and the faults it fails on most, from DVSA MOT data.
Is this a valuation?
No. It is an estimate from average depreciation rates. A car's real price depends on its condition, history, specification and the market. A history check shows things that cut a car's value, such as outstanding finance or an insurance write-off.