The moment you drive a new car off the lot, it loses value. But how much? Below is the retention curve we use across the site, what pushes a car above or below it, and the levers you actually control. One thing up front: we do not hold sale prices for used cars, so everything here is a modelled estimate by vehicle class, not a record of what any particular car sold for.
Average Depreciation by Year
| Year | Average Value Retained | Loss on $50k Car |
|---|---|---|
| After 1 year | 80% | $10,000 |
| After 2 years | 70% | $15,000 |
| After 3 years | 60% | $20,000 |
| After 5 years | 45% | $27,500 |
| After 10 years | 25% | $37,500 |
On this curve the average car loses 55% of its value in 5 years. That is $27,500 on a $50,000 car, and for most owners it is the single biggest line in the cost of running the thing.
What pushes a car above or below the curve
We do not publish a retention percentage per brand, because we do not hold the sale data that would let us calculate one honestly. What we can tell you is which factors consistently move a car up or down the curve, and those are well understood:
- How heavily the model is discounted new. A car that is routinely sold below list sets a lower reference price for every used example behind it.
- Supply. Long waiting lists prop used prices up. Plentiful stock pulls them down.
- Running costs. Used buyers are more price-sensitive than new buyers, so thirsty or expensive-to-service cars fall further.
- Starting price. A car with a high RRP loses more dollars even at the same percentage, which is what makes luxury depreciation feel brutal.
- How long the model has been on sale here. A nameplate with a long local history has a settled used market. A new entrant does not have one yet, in either direction.
Retention by Body Style
These are the five-year figures in the model this site uses. They are class averages, so treat them as the middle of a wide range rather than a forecast for a specific car:
- Utes. about 54% retained after 5 years
- SUVs. about 50%
- Hatchbacks and vans. about 48%
- Sedans and wagons. about 45%
- Coupes and convertibles. about 42%
How to Minimise Depreciation
- Buy the most popular colour. white, silver, and grey resell fastest in Australia
- Keep km low. high-km cars are harder to sell and sit longer
- Service on time. a complete logbook is one of the few things a private buyer can actually verify
- Buy a 1-2 year old demo/used. let someone else eat the first-year depreciation
- Avoid heavy options. a $10k options package rarely adds $10k to resale. Stick to popular specs
- Buy a nameplate with a long local history. a settled used market is more predictable than a new one, in both directions
The Sweet Spot: Buy at 3 Years, Sell at 7
Depreciation is steepest in years 1-3, where the model has you losing about 40% of the new price. After year five it flattens to roughly 4% a year. Buying a 3-year-old car and selling at 7 years means you only experience the flat part of the curve.
EV Depreciation: The New Wild Card
Electric vehicles are depreciating faster than ICE cars in 2025-2026, driven by frequent manufacturer price cuts (especially Tesla) and rapidly improving new models that make older EVs less desirable.
The thing that makes EV residuals hard to predict is that the new price itself keeps moving. When a manufacturer cuts the price of the current car, every used one behind it reprices the same day. That has happened repeatedly in this market, and it is why we are not going to publish a retention percentage per EV model: the input moves faster than any figure we could print.
If you are weighing an EV, the more useful thing to watch is our price cuts tracker. A model that has had several cuts since launch has already reset its used values at least that many times.
Colour and Options
Common colours are easier to sell than unusual ones, and white, silver and grey dominate the Australian new-car market, which is why they are the safe choice if resale matters to you. We do not hold sale data by colour, so we are not going to attach a percentage to that. The same logic applies to options: a large options package rarely comes back dollar for dollar, and the safest specification to resell is the one most buyers ordered.
How Mileage Affects Value
Kilometres matter, but not in a way we can put a number on without sale data. What is reliably true: the Australian average sits around 15,000km a year, cars well above it take longer to sell and attract more scrutiny on service history, and cars well below it are easier to sell but do not command a proportional premium. A complete logbook does more work at resale than an unusually low odometer reading.
New vs Used: The Depreciation Maths
Worked example on a $50,000 car:
| Scenario | Buy Price | Sell After | Sell Price | Depreciation |
|---|---|---|---|---|
| Buy new, sell at 5yr | $50,000 | 5 years | $22,500 | $27,500 |
| Buy 3yr old, sell at 8yr | $30,000 | 5 years | $12,500 | $17,500 |
Buying a 3-year-old car saves $10,000 in depreciation over the same ownership period. The trade-off: the new car gets full warranty, latest safety tech, and newest features. If safety and warranty matter most, buy new. If financial efficiency matters most, buy used.
Tax Depreciation for Business Use
ABN holders can claim car depreciation as a tax deduction. The instant asset write-off threshold (currently $20,000 for small businesses) allows immediate deduction of the car's cost. Novated leases also use depreciation to reduce your taxable income. This is not financial advice. consult your accountant for your specific situation.
Compare Depreciation for Any Car
Our Depreciation Chart on comparison pages projects value over 5 years for any combination of cars, using the same class-based curve described above. It is a modelled estimate for comparing shapes, not a valuation of a specific car.