Primary Resale Estimate
Annual Rate: 15.0%ESTIMATED 5-YEAR RESALE VALUE
$15,530
Original Vehicle Price: $35,000
$35,000
Year 0 Baseline$15,530
End of Year 5-$19,470
Total Cumulative Drop44.4%
Residual ShareMulti-Year Resale Benchmarks
3 YEARS
$21,494
4 YEARS
$18,269
5 YEARS
$15,529
Year-By-Year Depreciation Schedule
| Timeline | Estimated Value ($) | Cumulative Loss ($) | Value Retained (%) |
|---|
How Vehicle Depreciation Works in the US Automotive Market
What is Vehicle Depreciation?
Depreciation is the difference between a vehicle's original purchase price and its value when resold or traded in. In the United States, new vehicles experience their steepest value loss during the first 3 years of ownership.
Key Factors Influencing Resale Value
While compound depreciation formulas provide strong statistical baselines, real-world valuation depends on vehicle segment, annual mileage, maintenance history, and local market demand.