What is the Average Car Depreciation Rate?
The accepted average car depreciation rate is roughly 15% per year. This rate will vary depending on the make and model of the vehicle. New cars depreciate about 20% the moment you drive them off the lot. The second and third year the vehicle will probably depreciate roughly 15% a year. After year five, depreciation rates slow down. There are websites such as MoneyZine that offer a car depreciation calculator. You can input your vehicle information and it will give you an average rate of depreciation, as well as the current value of the vehicle. This calculator is very easy to use and provides beneficial information. For more info, see How are Car Depreciation Rates Determined?
