Vehicle Finance

Car Depreciation Calculator

New cars are the fastest depreciating assets you can buy. Calculate exactly how much money goes up in smoke the moment you drive out of the showroom.

Vehicle Details

Depreciation is calculated on ex-showroom, not on-road price.

E.g., enter 0.5 for 6 months.

Standard IDV Depreciation Curve (IRDAI)

Up to 6 Months: 5%
Up to 1 Year: 15%
Up to 2 Years: 20%
Up to 3 Years: 30%
Up to 4 Years: 40%
Up to 5 Years: 50%
Resale Value

Estimated Current Value

₹10,50,000

This is the Insured Declared Value (IDV).

Purchase Price₹15,00,000
Total Wealth Lost-₹4,50,000 (30%)

The Financial Trap of New Cars

  • The "Drive-Off" Hit: The moment you drive a brand new car out of the showroom, it officially becomes a "used" car. According to insurance standards (IRDAI), it instantly loses 5% of its value. By the end of the first year, it loses a massive 15%.
  • The 5-Year Rule: After 5 years, a car generally loses exactly 50% of its ex-showroom value. If you bought a ₹20 Lakh car, you have lost ₹10 Lakhs in pure depreciation. This does not even include the money spent on fuel, maintenance, or loan interest!
  • On-Road Price is Irrelevant: Depreciation is calculated on the Ex-Showroom price. The RTO Registration taxes (which can be 10-20% of the car's value) and Insurance premiums you pay are completely vaporized. They add zero resale value to the car.
  • The Financial Hack: If you want to build wealth, buy a 3-year-old used car. The original owner has already absorbed the massive 30% initial depreciation hit, but the car is still relatively modern and under warranty.