Car Depreciation Calculator UK

Depreciation is the single biggest cost of car ownership, typically dwarfing fuel, insurance, and maintenance combined. A new car loses 15-35% of its value in the first year alone, and by year three most cars are worth only 40-60% of their original price.

The rate of depreciation depends on several factors. Fuel type matters more than ever: diesel cars depreciate 2-4% faster per year than petrol due to ULEZ restrictions and falling demand, while electric vehicles are bucking the trend and holding value better than combustion equivalents. Mileage plays a significant role too — cars driven over 12,000 miles per year lose value noticeably faster.

For car traders and flippers, understanding depreciation is essential. The most profitable strategy is buying at the point where depreciation starts to flatten — typically 2-4 years old — and selling before major maintenance costs kick in. This lets you minimise your holding cost and maximise the spread between buy and sell prices.

Want to see how much profit you can make on a specific car? Use our car flip profit calculator to model the full deal. For platform-specific fees, check the auction fee calculator. And for our complete guide to buying and selling cars for profit, read car flipping UK: the complete guide.