How Fast Does Your Car Lose Value?
Every vehicle depreciates. The question is how fast and when the curve flattens. See the depreciation curve for your vehicle category and find the sweet spot where buying used saves you the most.
Vehicle Details
Select a category and optionally a specific model. Enter the original purchase price (or MSRP for new) to see dollar amounts.
Select a vehicle category and click "Show Depreciation Curve" to visualize how your vehicle loses value over time.
Depreciation Curve
Percentage of original value retained at each year
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Straight Answers
On average, a new car loses 15-28% of its value in the first year depending on the category. Trucks retain the most (about 85%), while luxury vehicles depreciate the fastest (about 72% retained). This first-year drop is the single largest depreciation hit a vehicle takes.
Years 3-4 are generally the depreciation sweet spot. By this point the vehicle has already absorbed the steepest depreciation (40-50% of total lifetime loss), but still has significant useful life remaining. You avoid the biggest value drops while getting a relatively modern vehicle with current safety features.
Trucks and body-on-frame SUVs tend to hold value best. The Toyota Tacoma, Toyota 4Runner, and Porsche 911 are consistently among the top value holders across categories. Vehicles with limited supply, strong demand, and loyal followings retain value better than high-volume sedans and mass-market luxury cars.
Currently, yes. EVs depreciate faster than average due to rapid technology improvements, battery degradation concerns, and changing government incentives. A new EV typically retains about 75% of its value after year one compared to 80-85% for gas trucks and SUVs. That said, the gap is narrowing as the market matures.
Yes, directly. If your vehicle depreciates faster than you pay down the loan, you end up "underwater", owing more than the car is worth. This is especially common with long-term loans (72-84 months) on fast-depreciating vehicles. It limits your ability to trade in, sell, or even change insurance coverage without paying out of pocket.
Know the Depreciation Curve. Now Get the Right Price.
A Holdback consultation reviews your price, financing, trade-in, and every product the finance office puts in front of you. When repair costs start approaching your vehicle's depreciated value, our Repair or Replace Calculator can help you decide.
Questions? Email hello@holdback.ca
You only buy a car every four to six years. They sell one every day.
Worried about resale? Buy the right curve.
A Buyer’s Brief picks the model and trim that holds value over your ownership horizon.