See how much a car loses in value and how quickly — value after your chosen period, total lost and the average yearly drop, with a value-curve chart.
GAP insurance covers the value gap after a write-off or theft.
The model assumes a constant annual loss rate (value × (1 − rate)^years). In reality the biggest drop is in year one — treat the result as an average.
The calculator uses exponential depreciation: each year the car loses the same percentage of its current value. Value after the period = price × (1 − annual loss)^years. The loss is the difference between the purchase price and the final value.
The chart shows the value curve year by year (blue) and the lost portion (grey). A typical car loses 15–20% a year, often most in the first year — a new car 'loses value as it leaves the forecourt'.
Usually 15–20% a year, with the first year the steepest (20–30%). After 3 years a new car is typically worth 50–60% of its price.
Popular models with strong second-hand demand, low running costs and a good reliability reputation. Niche, expensive-to-run and heavily-optioned cars depreciate faster.
No — depreciation happens regardless of how you finance. GAP insurance protects you: it covers the gap between market value and the amount your policy pays after a loss.
No — everything is calculated locally in your browser.
Depreciation is usually the largest cost of owning a car — bigger than fuel or servicing — yet the most overlooked, because you don't pay it monthly, only when you sell.
Enter the purchase price and an estimated annual loss above to see how much value you will really lose.