The depreciation of new cars is particularly high in the first few years. The older the used car, the lower the loss in value over the years. There are various formulas that can be used to calculate the depreciation and current value of new and used cars.
However, the possibilities for car value calculation limited by rule of thumb. Not all value-relevant criteria can be covered by a single universal formula. Because car depreciation is neither constant, nor regionally the same. On the contrary, it is very different depending on the car.
In addition, there are current developments in the vehicle market. The depreciation of diesel cars. The chip shortage in new vehicles and the impact of corona.
Due to the corona crisis and the associated weakening of purchasing power, significantly fewer new cars were sold in 2021. On the other hand, the prices of used cars will increase by an average of 15%. Especially cars with gas. The prices of used cars with gasoline engines and hybrids (gasoline/electric) also continue to rise.
The loss of value of a car is one of the most unpleasant phenomena for car owners. Every vehicle, whether new or used, loses value per year and per kilometer.
The amount of car depreciation is influenced by several factors. In addition to manufacturer and vehicle model, this also includes condition and the current supply and demand situation on the vehicle market.
A VW, mercedes or audi is more popular with most buyers than z.B. A subaru. This means that well-known car brands with high registration numbers are inherently more stable in value.
Therefore, it is also difficult to estimate the current value of his car correctly. Own estimates of the current residual value, usually turn out to be too high.
If you’re planning to sell your used car, it’s important to have reliable information on the current value of the vehicle as well as on depreciation.
The precise assessment of the possible or. the achievable sales price often determines whether a car sale is a success or a failure. And no one wants to sell their car below value.
In times of corona crisis, vehicle valuation has become even more important. Because for some cars, the effects of the corona pandemic have caused a loss in value. With other vehicles however, the prices rise.
Depreciation of diesel cars
Vehicles with diesel engines – keyword: emissions scandal are particularly affected by the loss in value. The automotive market is currently in a state of flux. Not only because of the effects of the corona pandemic. Electric cars and hybrids are increasingly becoming the focus of buyers’ attention. Even though there is still a lot of uncertainty about electric cars.
Why buy an e-car when they are still so expensive to buy?? The general conditions are simply not yet right. Why buy an electric car if electricity prices continue to rise??
For the sake of the environment? This is the only reason that speaks for e-cars at the moment (as of 01/2022).
Loss of value petrol& E-car
The government’s environmental bonus and subsidies for new car purchases are also influencing the price level. The loss in value of new and used diesel cars will increase in the future.
The loss in value is also high for electric cars. New vehicles flatten their tires at the dealership. Too few buyers and too little interest overall. E-cars are simply too expensive. The charging infrastructure is not sufficiently developed and the electricity prices are rising. Even the subsidies do not help with the purchase. Government subsidies would have to be increased significantly!
Electric, hybrid and hybrid plug-in:
The future belongs to alternative drives. Whether electric cars, hybrid vehicles and hybrid plug-ins are the future remains to be seen. Many models are still simply too expensive.
If the new prices of hybrid plug-in and pure electric vehicles continue to fall. If there is sufficient infrastructure to recharge the batteries. If electricity prices fall, the number of e-cars sold will also rise.
If you look at the average loss in value of a car (vehicles with gasoline/octomotive engines), you can see the following:
After initial registration, the current value plummets massively. After approx. 3 years, this trend stabilizes. The car depreciation formula 2022 (updated 01/2022 bewerta kfz-marktbeobachtung)
Formula: depreciation of the car in percent % (gasoline)
As a guideline, the depreciation of new cars after one year is almost one third of the original purchase price.
The average depreciation across all car classes and an annual mileage of 15.000 km:
- In the first year approx. 24%
- In the second year approx. 9%
- In the third year ca. 6%
- In the fourth and subsequent years approx. 4%
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Car valuation – current used car value
If you want to find out the current residual value of your used car in a safe and uncomplicated way, you should rely on a individual vehicle valuation set.
On our website you can get by online car valuation, the current have the vehicle value determined. The "value" can be determined as either the market value, private sales price, dealer purchase price (dealer purchase value) or residual value.
Basis of our used car valuation form data from various sources. This includes price analyses as well as data with comparative values from our own databases.
What is my car worth?
This is a question that car owners often ask themselves when they want to sell their car. The value of the car as well as the depreciation are influenced by various factors. To be able to calculate the actual car value, there are different methods.
Instructions: calculate car value
- Use of a residual value formula (z.B. dysentery head salm, dr. half wax)
- Valuation by an appraiser or expert (value appraisal)
- Use of an car valuation (z.B. Bewerta, schwacke list, dat-schwacke or ADAC)
- Orientation to current market prices (own price research)
Car depreciation per year (petrol)
New cars have the highest depreciation. After one year the car is worth 24% less on average. In the second year approx. 9% loss of value added. In the third year there are approx. 6%. Over time, the reduction in value decreases progressively. In the 4 year as well as in the following years it is approx. 4%.
The depreciation curve can even rise again. However, this only happens if the vehicle is in excellent condition and becomes a popular youngtimer or oldtimer.
In order to meet the annual car depreciation to calculate it mathematically, one falls back on formulas. But these are not exact and provide only approximate values.
A calculation about so called residual value calculator is also possible. Per schwacke-dat for vehicles of the last 12 years of construction. Per DAT – the deutsche automobil treuhand gmbh (DAT) also offers such an online tool. Determined is the approximate dealer purchase value net (without special accessories). For schwacke-dat it is the net purchase price and gross dealer selling price.
However, you can also research current sales prices of used cars yourself. A good possibility are internet car exchanges like mobile.De or autoscout24.De. Average prices can be calculated using vehicle valuations.
Car depreciation per km (kilometers)
Basically, the higher the purchase price, the higher the cost per kilometer driven. the more horsepower, the higher the cost per kilometer. Add to that factors like manufacturer, model, annual mileage, depreciation, maintenance, car insurance, car tax, fuel, new tires and car wash.
Taking all these factors into account and a fictitious annual mileage of 15.000 km, there are significant cost differences depending on vehicle class.
The average car value loss by vehicle class:
- Small cars new price 10-13.000 euro ca. 24 cents per kilometer
- Compact class new price 14-20.000 euro approx. 35 cents per kilometer
- Mid-range new price 21-25.000 euro approx. 60 cents per kilometer
- Upper mid-size new price 26-30.000 euro approx. 82 cents per kilometer
- luxury class new price 31-35.000 euro ca. 1,15 cent per kilometer
Source: bewerta.De analysis car value loss 2022
Formula for car depreciation – only rough guide value
Due to the many factors relevant to value, the formula for car depreciation calculation Weaknesses too. It can only serve as a rough guide value. Nevertheless, various formulas for calculation of depreciation, current value or market value used.
Especially car insurance companies and appraisers, use these for calculation of residual values. Here you can find more information on this topic: depreciation of motor vehicles appreciable depreciation.
Stable value cars – the residual value giants 2019
every year, eurotax schwacke gmbh, in cooperation with the auto bild newspaper, determines the models with the most stable values in 13 vehicle classes.
Among the residual value giants especially the manufacturers audi, porsche, mercedes, VW and BMW are often represented.
DAT also provides analyses of sales prices and residual values on an annual basis. At DAT residual value report the 50 most stable vehicles in terms of value are determined.
To find out exactly how much a car is worth at a certain point in time, you can carry out a car valuation both at schwacke and at dat-schwacke.
Alternative to these online vehicle valuations you can also have an expert appraisal done. Both the TuV and the dekra offer corresponding value appraisals to. The prices for these expertises are between 140 and 230 euro. Valuations of motor homes and caravans are somewhat more expensive because the time required is higher.
Cars with the lowest value loss in 2019 by vehicle class:
Pin car residual value giants – the most value-stable cars. Source: autobild, schwacke
depreciation the most important factor
The most important factor is depreciation. Unfortunately, many car buyers do not take this into account. For some models, the loss in value after four years is approx. 44%. There are, of course value-stable models such as.B the fiat 500, VW up or opel adam.
Not every vehicle class promises stable value. However, experience shows that certain vehicle classes are more stable in value than others: car depreciation by vehicle class.
- Lowest depreciation – small cars/smallest cars
- Low depreciation – compact cars/SUVs/sports cars
- Medium depreciation – mid-size& upper class
- High depreciation – large vans/compact vans
- Very high depreciation – luxury class
cars with the highest depreciation in 2019
The highest loss of value has cars that were already expensive when they were bought. The new car prices are 60.000 euros and more. The following models have lost the most value: BMW 745d, mercedes SL 500 and the lexus LS 430. BMW is represented in the list twice and mercedes three times.
Pin car residual value list. These cars lose the most value. Source: RP-online
Car value loss after an accident
After an accident, every vehicle loses value. No matter if the damage is minor or was severe. The fact alone that the vehicle is an accident vehicle, reduces the value.
Even a repair does not guarantee that the vehicle will be completely free of defects again. It is uncertain whether internal structures or components have not been affected.
Accident vehicles are virtually unsaleable on the private vehicle market. Main buyers are dealers specializing in accident vehicles. Alternatively, it is also possible to calculate depreciation in so-called salvage exchanges find a buyer.
Calculating the loss in value of a car after an accident is the job of an appraiser. To settle damages, determine for liability or comprehensive insurance, the cost of damages.
Car colors that retain their value
If you are buying a new car, you can start by choosing the color, counteracting the loss in value. Because the amount of resale value depends also on the color of the car.
Germans favor the colors gray/silver and black when buying a new car. White is increasingly becoming a trend color.
What car colors are popular in germany?
Pin the top car colors in germany. Source: KBA, ADAC
Best time to sell your car
A question that concerns many car owners is: when is the best time to sell the car??
How does the depreciation of my car develop?
As an orientation: the average age of used cars offered for sale is 7 years. Source: bewerta used car market analysis 2019.
In this period the depreciation has already "hit" well. The depreciation curve increasingly stabilizes the older the vehicle gets. After approx. 4 years is the depreciation per year almost constant.
In order to achieve the lowest possible depreciation, the car should be sold as soon as possible. About after 4 to 5 years. But not everyone can or wants to sell his car after this short time again.
On the other hand, repair costs also rise with increasing vehicle age. The likelihood of more and more defects increases. At the same time, the residual value of the vehicle continues to drop.
Pin ratio depreciation vs. Repair costs. Data ADAC graphic: VWFS / fortynine
Due to the many value-relevant factors, the formula for calculating depreciation also has its weaknesses. It can only serve as a rough orientation value. Nevertheless, various formulas are used to calculate depreciation, current value or market value.
But what is the best time to sell the car??
The answer is: the sooner the better. Expressed in years approx. 5 years after new purchase.
Sell your car before you reach 100.000 km mark. For some vehicles it is worthwhile in terms of depreciation even before reaching the age of 50.000 km mark for sale.
A mileage of 150.000 kilometers or more, is nothing unusual nowadays. The engines have become more reliable and durable. However, private car buyers tend to favor mileages below 100.000 kilometers. Dealers have less problems with high mileage and high age of the vehicle. As export goods for foreign countries, defective and accident vehicles always find a buyer in third countries.
Pin breakdown frequency in relation to vehicle age. Source: ADAC
How to get a good price for your car when selling it
First of all, your selling a car privately. This means: you advertise the car yourself and do not sell directly to a dealer. The reason: in private car sales you can get better prices. advertise in as many car exchanges as possible at the same time. Recommend mobile.De, autoscout24.De and ebay classifieds.
Instructions: sell car at the best possible price
- Clean the car thoroughly from the outside and inside
- Take enough and high resolution photos
- Renew the MOT
- Have defects, scratches, dents repaired (worthwhile before selling)
- The technical condition should be perfect
- A well-maintained checkbook, is advantageous
- Mention special equipment/accessories in the advertisement
- Write a sales text that arouses curiosity
- Timing belt, tires, fluids, brakes recently changed?
- Set the price as a basis for negotiation
- Be patient and adjust the price gradually
Used cars should be repaired before selling?
Rule of thumb for repairs: if the repair will cost more than half of the current residual value, don’t go for a repair.
Repairs are often worthwhile even on cars that are 8 years old or more. As long as the repairs are within a cost range of less than 1000 euros. When it gets more expensive, it is still often worth it, but you should do the math.
Determine the current car value – if the vehicle were free of defects. Check at what market prices, the vehicle is currently traded. Car exchanges such as mobile are suitable for research purposes.De or autoscout.
subtract about 10% from the stated sales prices, which are only desired prices of the sellers. From. This way they can get closer to the real selling price. Based on this information you can decide for or against a repair.
Damage to paintwork can be classed as accident damage
Few people are aware that paint damage can be classified as accident damage if it cannot be repaired by smart repair. The same applies to damage caused by hail. Depending on the extent, a partial or complete paint job may be required.
These defects significantly reduce the value of the car. Particularly in sales negotiations, paint defects such as scratches, dents or dings are often mentioned. For a potential buyer it is a good opportunity to push the price down. Therefore, if it is still profitable, you should remove the defects beforehand.
Number of pre-owners& depreciation
In germany cars with few previous owners are preferred. According to the DAT report, 68% of all used cars are bought first-hand.
The more previous owners, the greater the loss in value. Many previous owners are never good for a car sale. Buyers then think: the car has probably caused a lot of trouble and the previous owners want to get rid of it as quickly as possible.
Experience shows that other factors are more important to buyers than the number of previous owners. An optical& technically maintained vehicle with new TuV, is valued higher. A well-maintained checkbook and regular maintenance also have a positive effect on the depreciation of the vehicle.
Car value loss due to corona
Due to the current corona crisis, the value loss of new cars and diesel cars is the highest. In contrast, the prices of used cars with gasoline engines, gasoline hybrids and gas systems will increase significantly compared to the previous year 2021. New cars are currently slow sellers and are offered by dealers with high discounts of up to 30%. The corona virus causes prices on the vehicle market to vary – depending on the type of drive system. With the containment of covid-19, prices will increasingly stabilize. Conversely, for used car sellers it is a good time to. Never before have used cars fetched such good prices as at present. The used car market is currently virtually "empty". Cars with gas systems, gasoline engines and used hybrids are rare and sought after.
Depreciation of diesel cars
For many years, diesel cars were considered vehicles with stable values. They were more expensive to buy than gasoline-powered cars, but you could save money on fuel afterwards. When in the neighboring countries already predominantly petrol cars were driven, the Germans continue to rely on diesel cars.
Until the emissions scandal, then the demand changed significantly. The depreciation of diesel cars is still very high. the number of new registrations of diesel cars continues to decline. The forecast for the future does not look any better. On the contrary, there will be fewer and fewer diesel vehicles. electric vehicles are very likely to dominate the road scene in the next decade.
Value development& residual value of diesel cars
Pin residual value& prices of diesel cars are on the decline. Source: DAT, KBA, meinauto
Vehicle valuation for diesel cars
How much is the depreciation?
Can you still sell diesel cars?
Of course you can still sell diesel cars. As a result of the emissions scandal, however, residual values have fallen and the sales prices plummeted. Depending on the manufacturer and model, one must expect devaluations of up to 50%.
Even if demand in this country is declining, buyers can still be found. Mainly dealers specialized in car purchase.
However, it is also clear that fewer and fewer buyers are looking for diesel vehicles in vehicle exchanges. The confidence in diesel vehicles is destroyed with many. The survey of the central association of the german motor vehicle trade (ZDK) shows, most expect depreciation of 30% to 50%.
Survey: are diesel cars still for sale??
Pin survey: is it still possible to sell diesel cars?? Source: ZDK
Calculate the depreciation of the car with schwacke
With the help of the schwacke list it is possible to calculate the depreciation of the car indirectly. On the one hand by online car value calculation (the current car value). On the other hand, on the basis of list prices.
This makes it possible to calculate the prices for the last 12 years of construction. The schwacke list is divided into dealer selling price and dealer buying price. Residual values can be easily read off on the basis of annual figures. Of course, these vehicle values from dat-schwacke, are not set in stone. The schwacke list prices are updated annually.
At schwacke online calculator the car value is calculated by an algorithm. The result of the valuation provides information on the price at which a dealer would be likely to buy and sell the car. Data basis of the schwacke valuation form u.A. Comparative values, dealer surveys and dealer sales feedback.
conclusion: loss of value should be taken into account when buying a car
A formula for determining value or residual values can only provide a guide value.
There are simply too many criteria that influence the depreciation of a car. In addition to manufacturer, model, first registration and mileage, the visual and technical condition also have a major impact on the value of the vehicle. corona in particular is currently causing problems for car dealers. Too few new vehicles are being sold. High discounts and price reductions are not a long-term solution.
The amount of depreciation also depends on the vehicle manufacturer. Well-known and popular manufacturers and models perform better in terms of value loss. A glance at the registration figures and residual value statistics is all it takes to see this. Therefore, it is advisable to think about depreciation before buying a car.
How to improve the value retention
Once the car is purchased, there is still a lot that can be done to improve its value. In general, vehicles that have been regularly maintained lose less value. Regular services, maintenance and inspections, also contribute to value retention. A well-maintained checkbook, few previous owners and a fresh MOT are features that justify a higher selling price when selling a car.
Market demand and the time of sale (season) also have an influence on prices. In addition, sales prices vary from region to region. Therefore, there is no formula that can accurately calculate the depreciation of the car. Only approximate values can be determined.
a used car without air conditioning is difficult to sell on the private car market. Depending on the vehicle class, buyers expect a certain level of equipment to be available.
Looking only at the fuel variant, diesel cars are the clear losers. Due to the emissions scandal and the diesel debate, the residual values of diesel vehicles have plummeted. the depreciation of diesel cars is high and demand in germany is declining. Most europeans prefer gasoline cars anyway.
Value-enhancing factors when selling a car
The color of the car has a positive effect on the selling price. The colors gray/silver, black and the trendy white are favored by buyers in this country.
The right equipment also increases the value of a car. Especially the area of safety& comfort is becoming increasingly important. These include z.B. Automatic air conditioning, heated seats, navigation, high-quality audio systems and assistance systems such as lane departure warning, drowsiness warning, emergency brake assistance, cruise control and parking aids. These extras ensure greater value stability and reduce the loss of value when the car is sold at a later date.
This is also in line with the DAT car market analysis. According to this, percentage increases in the purchase of cars with equipment in the area of comfort and safety were measured. The trend is toward vehicles with comprehensive safety systems such as drowsiness detection, lane departure warning and emergency braking assistance. In the area of comfort, ergonomic seats, keyless access and the electrically opening tailgate are in particular demand.
Therefore, before buying a vehicle, whether it is a new car or an annual car, you should take the subsequent depreciation into account. If you choose the right manufacturer/model and equipment, you don’t have to worry about a big loss in value when you sell your car later on. Particularly important in today’s world: the engine and drivetrain. Should it be a gasoline or diesel? Or a hybrid, hybrid plug-in or e-car?
The advantages and disadvantages are well known. All vehicle variants are subject to depreciation. The greatest loss in value is currently for diesel cars, followed by e-cars and gasoline-powered cars.
Calculating car depreciation with a formula: yes or no?
Formulas are only partially suitable for calculating the depreciation of a car. It is better to be guided directly by current market prices. If you regularly research on car exchanges, you can easily find out the value development of a car follow. This raises questions such as: what is my car still worth? Or: how much is the car depreciation? Quick answer.
Frequently asked questions
Here we answer all your questions about car depreciation
What is the depreciation of a car in percent??
The average loss in value of a car is: in the first year after registration approx. 24%. In the second year approx. 9%. In the third year approx. 6%. In the following years approx. 4%.
How much is the car depreciation per year??
As a guideline, the depreciation of a new car after one year is almost one third of the original purchase price. The loss in value is lower for year-old and used cars. After 5 years, most cars are only worth half of their original price.
What is the depreciation of a car per km?
The loss in value per kilometer varies depending on vehicle class. For small cars it is about. 0.24 cents per kilometer. In the compact class ca. 0,35 cent per km. In the middle class ca. 0.60 cents per km.
What is the depreciation of diesel cars??
As a result of the emissions scandal, the residual values of diesel cars have fallen sharply. Depending on the manufacturer and model, depreciation can be up to 50%.
When does a new car lose the most value?
New cars lose most of their value in the first year. Depending on the manufacturer and model, the loss in value is about. One-fourth to one-third the value of the original purchase price.
Which cars (car classes) have the lowest loss in value?
Generally speaking, the more expensive the vehicle was when it was purchased, the greater the loss in value. The smallest and smallest cars have the lowest depreciation. Compact cars, SUVs and sports cars have a low depreciation. Vehicles in the mid-range have an average loss in value.
What is the current value of my car?
The value of a car is dependent on a number of factors. In addition to brand, model, first registration and equipment, the current condition is also important for the vehicle value. A neutral car valuation provides information on the current vehicle value.
What is the depreciation of a motorcycle??
The loss in value of a new motorcycle in the first year is approx. 12%. In the second year approx. 6%. The older the vehicle, the less it loses value. The depreciation and current motorcycle value can be calculated by motorcycle valuation.
What is the depreciation of a motorhome??
motorhomes are more stable in value than cars. The average depreciation of the motorhome in the first year is about. 17-19%. In the second year approx. 5% and in the following years approx. 5%. It should be noted that depending on the type of body (alcove, integrated, van, partially integrated), the loss in value is different. You can find out the current value of your motorhome with our motorhome valuation service.
How much is the loss in value of a caravan??
For well maintained caravans the annual loss of value in the first year is approx. 16%. In the second year approx. 5%. In the third year ca. 5%. In the fourth year approx. 4% and in the following years approx. 3%. You can determine the current caravan value by caravan valuation.
Which cars have the lowest depreciation?
the more expensive the car was, the more it depreciates in value. But this is not always the case. In 2019, the following passenger cars had the lowest loss in value: audi e-tron 55 quatro (value retention 58.65%), VW up 1.0 (value retention 57,07%), audi A1 40 TFS S tronic (value retention 63,31%).
Which cars have the highest depreciation?
Generally speaking, high-priced vehicles have the highest depreciation. The following models are the residual value losers: BMW 745d, mercedes SL 500, lexus LS 430, BMW 750i, audi A8 3.7 quattro.
When is the best time to sell your car??
To achieve the lowest possible depreciation, you would have to sell your car as soon as possible. After about 4 to 5 years. Based on the mileage, the optimal time to sell is before the motorhome reaches 100.000 km mark. For some models even before reaching the age of 50.000 km mark.