Vehicle Depreciation Calculator
Calculate how much value your car has lost — or will lose — using the latest iSeeCars 2026 depreciation curves. The industry average is 41.8% over 5 years, but EVs lose 57.2% and trucks lose just 34.2%. Pick your segment for accurate numbers.
Last updated: April 2026 · Source: iSeeCars 2026 5-Year Depreciation Study (950,000 vehicles analyzed)
2026 depreciation: the iSeeCars findings
iSeeCars analyzed over 950,000 5-year-old used cars sold between March 2025 and February 2026 to determine actual depreciation rates by segment and model. The headline finding for 2026: industry average 5-year depreciation came in at 41.8%, an improvement of 3.8 percentage points from 2025\'s 45.6%. Used car prices have ticked back up after the post-pandemic correction, driven by sustained demand and constrained new car supply.
"This recent reduction in 5-year depreciation rates suggests rising used car demand and insufficient supply over the past 12 months," said Karl Brauer, iSeeCars Executive Analyst. "We are not back to pandemic levels, but with used cars retaining more value in every major vehicle segment, there has clearly been a shift in overall used car value."
The segment-by-segment story is dramatic. Trucks now retain the most value at just 34.2% depreciation over 5 years. Hybrids — which were one of the worst segments back in 2019 at 56.7% depreciation — have flipped to 35.4% as fuel prices and EV battery anxiety push buyers toward fuel-efficient gas-electric options. EVs remain the worst, losing 57.2% over 5 years, more than 15 percentage points worse than the industry average.
5-year depreciation by segment (iSeeCars 2026)
| Segment | 5-year loss | Value retained | vs industry avg |
|---|---|---|---|
| Truck | 34.2% | 65.8% | -7.6 pts |
| Hybrid | 35.4% | 64.6% | -6.4 pts |
| Sedan | ~39.5% | ~60.5% | -2.3 pts |
| SUV | ~41.0% | ~59.0% | -0.8 pts |
| Industry average | 41.8% | 58.2% | baseline |
| Luxury | ~51.5% | ~48.5% | +9.7 pts |
| Electric (EV) | 57.2% | 42.8% | +15.4 pts |
Source: iSeeCars 2026 5-Year Depreciation Study. Sedan, SUV, and Luxury figures are interpolated industry estimates.
Best and worst individual models
Best resale (lowest 5-year loss)
- Porsche 718 Cayman
- Porsche 911
- Chevrolet Corvette
- Toyota Tacoma
- Toyota Tundra
- Honda Civic
- Toyota Tundra Hybrid
- Subaru BRZ
- Toyota Prius
- Honda HR-V
Toyota holds 10 of the top 25 spots. The two Porsches plus a Lexus coupe are the only luxury vehicles in the top 25.
Worst resale (highest 5-year loss)
- Jaguar I-Pace (72.2%)
- BMW 7 Series (67.1%)
- Maserati Levante
- Nissan Leaf (63.1%)
- BMW i4
- Audi A8
- Tesla Model S (older)
- Mercedes-Benz S-Class
- Porsche Taycan
- Audi e-tron
18 of the 25 worst depreciators are luxury models. Eight are EVs. Five EVs appear in the top 10 worst.
Three real-world depreciation scenarios
1. The Toyota Tacoma that barely depreciated
Mark bought a $42,000 Toyota Tacoma TRD Off-Road in 2020. Five years later, with 65,000 miles, it sells for $33,500 — a loss of just 20.2%. He drove it for free for 5 years if you only count depreciation, then walked away with most of the value intact. The truck segment\'s 34.2% average loss is good. Specific Toyota trucks do even better.
2. The Jaguar I-Pace cautionary tale
A 2019 Jaguar I-Pace EV400 First Edition originally cost $86,895. According to KBB, the fair purchase price today is about $21,617 — a 75.1% loss in roughly 6 years. The original owner lost $65,278 in value. Reasons: rapidly improving competing EVs, Jaguar pausing production, battery technology aging, and lack of model updates. This is the worst case for EV depreciation, but BMW i4, Audi e-tron, and Porsche Taycan are not far behind.
3. The smart used buyer
Lisa wanted a Lexus RX 350 but the new MSRP of $52,000 was too steep. She found a 3-year-old Lexus RX 350 with 35,000 miles for $36,000 — buying after the original owner absorbed the steepest part of the curve. She drives it for 5 years, then sells for $23,000. Total cost of ownership over 5 years: $13,000 in depreciation, vs the new buyer\'s roughly $24,000 over the same period. Buying 3 years used cut her depreciation cost by nearly half.
Common mistakes in thinking about depreciation
1. Thinking depreciation is "fake" because no cash leaves your pocket
Depreciation is the largest single cost of car ownership — bigger than fuel, insurance, and maintenance combined. Just because you do not write a check for it does not mean it is not real money.
2. Buying a luxury brand for "prestige"
18 of the 25 worst-depreciating models are luxury vehicles. The premium you pay above a comparable mainstream brand is mostly evaporated within 3 years.
3. Assuming all EVs depreciate equally
Tesla Model Y has held value far better than the Nissan Leaf or Jaguar I-Pace. Brand and battery reputation matter enormously within the EV segment.
4. Ignoring color and option choices
Bright orange manual-transmission sedans are harder to sell. White, silver, and gray sell fastest with smallest discounts. Popular options matter; obscure ones rarely add resale value.
5. Tracking the wrong number
What matters is the trade-in or private-sale value, not the optimistic dealer "retail" price. Always check Kelley Blue Book\'s "fair purchase price" or "trade-in value" — those are realistic.
Frequently asked questions
What is the average car depreciation rate in 2026?
According to the iSeeCars 2026 study (which analyzed over 950,000 5-year-old used cars sold from March 2025 to February 2026), the industry average 5-year depreciation rate is 41.8%. That is an improvement of 3.8 percentage points from 2025's 45.6%, driven by sustained used car demand and constrained supply. Translation: a $40,000 new car is worth about $23,300 after 5 years on average.
Which vehicle types lose the most value over 5 years?
Electric vehicles depreciate fastest at 57.2% over 5 years according to iSeeCars 2026. Luxury vehicles average around 51%. The fastest-depreciating individual model is the Jaguar I-Pace at 72.2% — meaning an $86,000 I-Pace from 2019 is worth roughly $24,000 today. Other major losers: BMW 7 Series at 67.1% and Nissan Leaf at 63.1%. Eight of the 25 worst-depreciating vehicles are EVs and 18 are luxury models.
Which vehicles hold their value best?
Trucks lead all segments at 34.2% 5-year depreciation, followed by hybrids at 35.4%. Among individual models, the Porsche 718 Cayman and Porsche 911 retain the most value (some Porsche 911 trims lose under 10% over 5 years). The Chevy Corvette, Toyota Tacoma, Toyota Tundra, and Honda Civic round out the top 5. Toyota is the most prominent brand on the best-resale list, holding 10 of the top 25 spots.
Why do EVs depreciate so fast?
A combination of factors: rapid technology improvement (every new model year is meaningfully better, making older EVs feel outdated), battery degradation concerns, frequent price cuts on new EVs by manufacturers (especially Tesla and now legacy automakers), the federal tax credit only applying to new vehicles in most cases, and lease-end inventory flooding the used market. Karl Brauer of iSeeCars notes EVs have outpaced the industry average depreciation by over 15 percentage points for several years running.
How is car depreciation calculated?
Depreciation is the difference between the original MSRP and the current resale value, expressed as a percentage. iSeeCars calculates it by comparing inflation-adjusted MSRPs (using BLS data) to actual asking prices for 5-year-old used cars. For an individual buyer, the simple formula is: ((Original price - Current value) / Original price) × 100. The calculator above uses iSeeCars 2026 segment averages applied to a realistic front-loaded curve.
What is the 20% first year rule?
The traditional rule of thumb is that a new car loses about 20% of its value in the first year and roughly 15% per year for the next 4 years. This gets you to about 60% total loss over 5 years. The actual 2026 data is gentler — the industry average is now 41.8% over 5 years thanks to sustained used car demand. But the front-loaded shape of the curve is real: cars still lose the biggest chunk of their value in year one.
Does mileage affect depreciation?
Yes, significantly. Most depreciation curves assume 12,000-15,000 miles per year. Cars driven much more depreciate faster, and cars driven much less depreciate slower. A common adjustment: subtract about $0.10 per mile over the average from the value, or add $0.10 per mile under the average. A 5-year-old car with 100,000 miles vs the same car with 60,000 miles can be worth $3,000-$5,000 less.
Why do cars depreciate at all?
A new car is worth less the moment you drive it off the lot because the dealer profit margin and any sales tax are no longer recoverable. After that, depreciation is driven by: physical wear and tear, mechanical aging, the release of newer models with better technology and styling, and the basic economics of supply and demand in the used car market. Used buyers can simply choose to buy a 1-year-old version for thousands less.
How can I minimize depreciation when buying a new car?
Pick a brand and model with strong historical resale value (Toyota, Honda, Lexus, Subaru, certain Porsches). Avoid luxury brands that depreciate fast (BMW 7 Series, Mercedes S-Class, Audi A8, Maserati). Avoid first-generation EVs unless you plan to keep them 10+ years. Skip unnecessary options that do not transfer to resale value. Keep up with maintenance and document it. Avoid odd colors that limit the buyer pool.
Is buying a 2-3 year old used car a smart move?
Almost always yes. The first owner has absorbed the steepest part of the depreciation curve (about 28% in year 1, accumulating to ~45% by year 3 for an average car). You get a vehicle with most of its useful life ahead of it at a fraction of the new price. Look for off-lease vehicles, certified pre-owned with manufacturer warranties, and segments that hold value well so you avoid buying into a steeper future depreciation curve.
How does depreciation affect leasing?
Lease payments are essentially you paying for the car's depreciation during the lease term, plus interest. A car with strong residual value (low depreciation) is cheaper to lease than a car with poor residual value, even at the same MSRP. This is why a $40,000 Honda CR-V often has a similar lease payment to a $30,000 vehicle from a brand with worse residuals — Honda holds its value, so the depreciation portion is smaller.
Where does the iSeeCars data come from?
iSeeCars is a data-driven car search and research company that analyzes millions of vehicle transactions per year. Their 2026 depreciation study examined over 950,000 5-year-old used cars sold between March 2025 and February 2026. MSRPs are inflation-adjusted to 2026 dollars using US Bureau of Labor Statistics data, and the difference between original MSRP and current asking price is mathematically modeled to determine actual depreciation. Karl Brauer, their executive analyst, is a frequent industry commentator.
Data sources: iSeeCars 2026 5-Year Depreciation Study (950,000 vehicles analyzed March 2025-February 2026); iSeeCars Best Resale Value 2026 rankings; Karl Brauer (iSeeCars Executive Analyst) commentary; Kelley Blue Book fair purchase price data; US Bureau of Labor Statistics inflation adjustments.
Last updated: April 2026. Depreciation curves are based on segment averages and approximate the typical front-loaded shape. Individual model results vary significantly.
Disclaimer: This calculator provides estimates for educational purposes only and is not a vehicle appraisal. For an accurate value on your specific car, use Kelley Blue Book or Edmunds with your VIN, mileage, and condition.