Model a percentage decline in value
Enter the purchase price, a constant annual depreciation percentage and the length of ownership. The percentage applies to the remaining value each year, not to the original purchase price every year. Open the calculation schedule to see the modeled value and cumulative loss at each year-end; a fractional ownership period has a final partial-year row.
For example, a car bought for 20,000 with a chosen 10% annual decline is modeled at 16,200 after two years. This is compound decline, not a prediction for a particular model. The average annual loss divides the total loss by the ownership period; it does not mean that the cash loss is identical every year.
What the estimate cannot tell you
The tool does not infer a market rate from the brand, age or location of your car. Mileage, condition, service history, supply and local demand can produce a different selling price. Compare actual local offers before making a purchase or sale decision. The currency selector changes labels only; enter all values in one currency.
This is an ownership-cost scenario, not a UK capital-allowance or other tax-depreciation calculation. Choosing GBP does not make the result a tax deduction. No tax treatment is calculated. A 0% rate leaves the modeled value unchanged; a 100% rate reduces it to zero after the first year in this simplified model.
Compare value loss with the loan
Depreciation and borrowing costs are different. Use the car payment calculator for payments and interest. If considering a deferred final payment, the balloon payment calculator shows how much remains due; it does not guarantee that the car will be worth that amount. Existing borrowers can compare costs using the refinance calculator.