How much does a new car depreciate in the first year?

Around 20% for most mainstream models, though supply shortages and popular trims can shrink that sharply.

Does high mileage always reduce value?

Yes, relative to the average for the car's age. Well-maintained highway miles hurt less than the same figure on short urban trips.

Is a trade-in ever better than a private sale?

Often, once the sales-tax credit in your state and the time saved are counted, even though the headline price is lower.

How do I sell a car I still owe money on?

The lender is paid from the sale proceeds and releases the title. If the balance exceeds the price, you cover the difference at closing.

Do dealer online offers reflect real value?

They are usually near the trade-in figure and are a useful free floor to negotiate against.

Estimator

What's My Car Worth? Free Vehicle Value Estimate

What's my car worth right now? Depreciation is steep and front-loaded, so the useful answer combines age, mileage and condition — and then splits into two very different numbers for trade-in and private sale.

Your details

What you paid new or used$32,000

Years since you bought it4

Miles a year you drive13,000

Loan balance left$9,000

Private sale value

$16,384

Trade-in offers usually land near $13,927

Depreciation so far: $15,616
Trade-in estimate: $13,927
Equity after loan payoff: $7,384
Position: Positive equity

How you compare: A new vehicle loses roughly 20% of its value in year one and about 15% a year after that; average US mileage is close to 13,500 miles a year.

How we calculate this

We depreciate the purchase price by about 15% a year, which tracks the long-run average across mainstream models once the first-year drop is spread out.

Mileage above 12,000 a year is penalised, because buyers and appraisal guides price high-mileage examples well below average ones of the same age.

Trade-in is shown at roughly 85% of private-sale value: a dealer has to recondition, hold and warrant the car, and that margin comes out of your price.

Condition, service history, colour and options move the real figure. A documented service record is worth real money; accident history is a heavy discount.

Trade-in versus private sale

Selling privately typically returns 10% to 20% more, at the cost of listings, viewings, test drives and payment risk. A trade-in takes an afternoon.

In states that tax only the difference between trade-in and new purchase, the trade-in also cuts your sales tax bill — sometimes enough to close most of the gap.

What being underwater means

Negative equity means the loan balance is larger than the car is worth. It is common in the first two or three years of a long loan, especially with a small deposit.

Rolling that shortfall into a new car loan repeats the problem at a larger balance. The usual fixes are keeping the car until the balance catches up, or paying the difference in cash at sale.

What raises the price you actually get

A full service history, a clean interior, matching tyres, a professional detail and clear photographs in daylight. None of that is expensive and all of it moves offers.

Timing matters too: convertibles sell better in spring, four-wheel drives in autumn, and any car sells better before the model year changes.

Frequently asked questions

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