A car depreciates by 15% each year. If it was purchased for $30,000, what will its value be after 5 years?

Thu, 30 Apr 2026 04:30:15 +0000

**A car depreciates by 15% each year. If it was purchased for $30,000, what will its value be after 5 years?** When investing in a new vehicle, one question consistently surfaces among owners and buyers: how much does a car lose in value over time? In a market where vehicles depreciate consistently—often around 15% annually—understanding depreciation’s impact offers more than just financial clarity. It shapes decisions about buying, selling, insurance, and long-term ownership. For many, asking, *“If I bought a car for $30,000, what’s its value after five years?”* isn’t just about numbers—it’s about planning, budgeting, and real-world financial literacy. ### Why A car depreciates by 15% each year. If it was purchased for $30,000, what will its value be after 5 years? Is Gaining Attention in the US The harsh reality of car depreciation—15% per year on average—reflects broader economic and consumer behavior patterns in the United States. This depreciation rate stems from market forces: new models dominate yearly, technology quickly outpaces older models, and driver demand shifts toward newer safety and efficiency features. As digital research tools expand public awareness, this consistent rate has become a common point of reference, especially among informed buyers who compare lifecycle costs beyond the sticker price.