Used Car Depreciation Calculator Australia
Check what a new or used car will be worth in Australian dollars, year by year, with kilometres instead of miles.
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 A$42,000
- Total value lost
- A$24,669 (59%)
- Cost of depreciation per month
- A$411
- Worst single year
- A$8,811
| Year | Value | Lost that year | Total lost |
|---|---|---|---|
| Today | A$42,000 | — | 0% |
| Year 1 | A$33,189 | A$8,811 · 21% | 21% |
| Year 2 | A$27,554 | A$5,635 · 17% | 34% |
| Year 3 | A$23,152 | A$4,402 · 16% | 45% |
| Year 4 | A$19,916 | A$3,236 · 14% | 53% |
| Year 5 | A$17,331 | A$2,584 · 13% | 59% |
Used car depreciation in Australia
If you're buying used, enter today's price and the car's age: the calculator continues the curve from that point, so a 3-year-old car shows the gentler losses still to come. Pick Pickup truck for utes; they hold value much like American pickups.
Market value vs ATO depreciation
The ATO's tax depreciation (25% a year diminishing value over an 8-year effective life) is a rule for deductions, not a prediction of what the car will sell for. Real market values usually fall faster than that in year one and slower later on.
Questions people ask
How much do used cars depreciate in Australia?
Australian cars follow the same pattern as elsewhere: the steepest drop is in the first two to three years, and many new cars lose around 40–50% in their first three years. Utes and popular four-wheel drives such as the Toyota HiLux and LandCruiser are well known for holding their value.
What depreciation rate does the ATO use for cars?
For tax purposes the ATO sets an effective life of 8 years for cars (per its effective life ruling), which means 25% a year using the diminishing value method or 12.5% a year using prime cost. The car limit caps the cost you can depreciate for passenger cars. That is a tax figure, not a market value.
Does the calculator work in kilometres?
Yes, this page uses Australian dollars and kilometres. The baseline is about 19,000 km a year; enter your own figure to adjust.