Owning a car these days is expensive, there are many expenses like, fueling the car, getting it serviced from time to time, accessorizing it and so on. But did you know, your new car will start losing its value as soon as you drive it out of the parking lot of a dealership? This Car Depreciation Calculator allows you to calculate how much your car will devalue over the period that you own it.
|The approximate value of the car after years is|
The process in which the car loses its value is defined as car depreciation. This value is mainly important when you want to sell your existing car or when you are buying a new car. Let's have a brief look at the concept of car depreciation and how it affects your car.
A car loses almost 10% of its value at the very moment it is purchased and taken home from the market. A study reflects a new car loses approximately 60% of its value within 5 years, used cars also lose value over time.
Depreciation can be defined as one of the major factors of the true cost of owning a car. Depreciation is the reduction in the value of a car that happens due to aging of car design, wear and tear as a defined term by the economists.
As a general trend, it is considered that a car's value decreases to 80% after a year of its useful life. It drops to approximately 69% at the end of second year, almost to 58% in the third year and it goes down to 49% and to 40% by the end of fourth and fifth year respectively.
This data would not be accurate for all kinds of cars, different cars depreciate differently. However, it may be assumed that after almost 10 to 11 years, a car would lose its value entirely. Sure, you might be able to sell it to individual buyers, but we are talking about market value here.
There are many websites available to help you sell or purchase an old car, but wouldn't it be better to know the approximate value of the car after expensing the depreciation value? Well, there is an easy way to calculate it, and that is by using an online calculator such as the Car Depreciation calculator by iCalculator.
Let's take a look at how to use the Car Depreciation Calculator.
In order to use the calculator you will be required to make the following inputs to the calculator:
On the basis of inputs made by you the Car Depreciation Calculator will provide you with the results that will show you the approximate resale value of your car.
This is to be kept in mind that the value shown in the results is only the approximate value and does not reflect the actual value that you might get at the time of resale.
Using the calculator can benefit you in several ways that are discussed further.
The calculator is an online tool and pretty simple to use, it can be accessed anytime on all kinds of devices without having to login or sign up on the iCalculator's website.
You may check the depreciation expenses of any kind of car of any value, and all you have to do is edit the values in the calculator.
The results from the calculator can be used to compare the prices offered by the used car dealers.
The calculator can be used by both sellers and buyers to get the approximate value of a used car.
To get a good resale value of your car, you may want to take some precautions as discussed below.
You may reduce the money lost due to depreciation by doing a little research and choosing the right kind of make & model for your new car. The brands that are reliable and known for low maintenance models are more likely to have a good resale value.
Cars that come in standard colors such as black, white, silver and gray have good resale value. It is also beneficial to opt for a transferable warranty at the time of the purchase of a car.
Additionally, you might want to do your own research and buy a car that already has good resale value in order to get the best resale price possible when you sell the car later or trade your care in for a new model.
You may also find the following Finance calculators useful.