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What is depreciation?
Car depreciation refers to the rate at which your car loses its value from the first year you bought it. In fact, the cost of your new car drops as soon as you drive it off the dealership lot. By using this car depreciation calculator, you can get an estimate of what your vehicle may be worth in the future and take steps to make informed decisions about repairs, trade-ins, insurance coverage, and more.
How is car depreciation calculated?
While it varies by a vehicle’s make and model, depreciation is calculated by taking the initial value of a vehicle and applying the average percentage decrease to it each year you plan to own it. Cars depreciate over time, but other factors like accidents are also taken into consideration. Generally speaking, alternative fuel vehicles and luxury vehicles tend to lose their value at a higher rate than more durable vehicles like pickup trucks.
Now that you've estimated your car’s potential depreciated value, learn about the different car insurance options from Nationwide.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply.