Here’s a simple formula you can use to calculate your car’s average annual depreciation.
Annual depreciation = (Total cost of vehicle – Sale value of vehicle) / No. of years in service
Car depreciation is never constant throughout your car’s 10-year life.
A new car generally depreciates at a higher rate in the first three years, so avoid selling your car unless you absolutely have to due to unforeseen circumstances.
What makes up the total cost of your vehicle?
To understand what contributes to the total cost of your car, zoom in on the following components.
Open Market Value (OMV)