How this number is made
Cars do not lose value in a straight line. They lose more in the first year. This page still draws a straight line from the price to the share you think will be left, so you can see the average year. The share left is your estimate.
- Forty percent left after five years means the car is worth 40 cents on the dollar, not that it fell 40%.
- Change the share before you treat the yearly number as a forecast.
Formula
Value lost = price × (1 − share left). Per year = value lost ÷ years.
Worked example
With the figures already in the form, average value lost per year is $3,360.
Questions
Why not a real depreciation curve?
Because a curve pretends to know the car. A percent you type is honest about being a guess.
Does mileage matter?
Yes, and it is inside the share you typed, or it is missing. The page has no mileage table.