The moment a new car leaves the dealership, it's already worth less than what you paid. It might sound alarming, but that's simply how car depreciation in Australia works. Understanding the curve properly can save you thousands, whether you're buying new, buying used or working out when to sell.<\/p>\n\n\n\n
Most new cars lose 10\u201315% of their value the moment they're driven away, followed by a total drop of around 20\u201325% by the end of year one. The steepest losses happen across years one to three, after which the curve flattens considerably. <\/p>\n\n\n\n
By year five, most mainstream vehicles sit somewhere between 40\u201350% of their original price.<\/p>\n\n\n\n
Here's roughly how a $40,000 car tracks over a decade, based on typical mainstream car depreciation patterns in Australia.<\/p>\n\n\n\n