A car depreciates in value by 15% each year. If its initial value is $30,000, what is its value after 5 years?

Thu, 30 Apr 2026 03:37:39 +0000

**Why a Car Loses 15% Value Each Year: What You Need to Know for 2025 (and Beyond)**
Driving through changing economic tides, many U.S. consumers are quietly wondering: if a car depreciates 15% annually, what really happens to its value over time? With rising interest rates, shifting fuel preferences, and a buyer landscape reshaped by electric vehicles and evolving maintenance costs, understanding depreciation isn’t just financial prudence—it’s smart planning. If you’re starting with a $30,000 vehicle, projecting its worth after five years offers not only clarity but crucial insight for long-term decisions. Let’s break down the numbers, trends, and realities behind one of the most common investment realities—and why they matter in today’s market. --- **Why Car Depreciation at 15% Per Year Remains a Key Focus**
While no single asset holds steady forever, the 15% annual depreciation rate for cars remains a widely cited benchmark. This figure reflects the industry’s strong consensus on expected value loss, grounded in historical fleet sale data and consumer behavior. For American buyers and investors tracking financial trends, it offers a familiar reference point—especially amid economic uncertainty and the steady shift toward new mobility solutions. The statistic isn’t arbitrary; it aligns with market patterns where vehicles lose significant worth mostly in the first few years, slowing each subsequent year as newer models enter the market and demand stabilizes. ---