UK Car Depreciation Calculator
Work out what your car will be worth in pounds after each year, and what depreciation costs you per month.
Get a plain-English read of your numbers, or ask anything about depreciation, when to sell or lease vs buy. Nothing is sent until you press Ask.
Today £30,000
- Total value lost
- £17,637 (59%)
- Cost of depreciation per month
- £294
- Worst single year
- £6,300
| Year | Value | Lost that year | Total lost |
|---|---|---|---|
| Today | £30,000 | — | 0% |
| Year 1 | £23,700 | £6,300 · 21% | 21% |
| Year 2 | £19,671 | £4,029 · 17% | 34% |
| Year 3 | £16,524 | £3,147 · 16% | 45% |
| Year 4 | £14,210 | £2,313 · 14% | 53% |
| Year 5 | £12,363 | £1,847 · 13% | 59% |
Car depreciation in the UK
Depreciation is usually the largest single cost of running a newer car in the UK, ahead of fuel, insurance and servicing (the RAC and AA both make this point in their running-cost guides). The first three years are the steepest; after that, the yearly loss in pounds shrinks quickly.
UK-specific factors
- Plate-change months: new registrations every March and September briefly push down prices of the previous plate.
- Low-emission zones: older diesels that don't meet ULEZ standards have become harder to sell in and around London.
- Vehicle Excise Duty: the expensive-car supplement on cars with a list price over £40,000 makes some used premium cars less attractive.
Questions people ask
How much does a car depreciate in the UK?
UK buyers see similar curves to the US: a typical new car loses around 15–35% in the first year and roughly half its value in three years, according to widely quoted industry figures from valuation firms such as Cap HPI. Premium diesel saloons and some EVs lose more; small popular cars and certain SUVs hold up better.
Does the calculator use UK mileage?
Yes, this version works in pounds and miles. The average UK car covers fewer miles a year than a US car (roughly 7,000–8,000 in Department for Transport data), so enter your own figure for the most realistic result.
Can I claim car depreciation as a business in the UK?
HMRC does not allow accounting depreciation as a tax deduction. Instead businesses claim capital allowances: new zero-emission cars can qualify for 100% first-year allowances, while other cars go into the main (18%) or special (6%) rate pool depending on CO2 emissions. Ask an accountant for your case.