What is the car depreciation rate?
2 Answers
Car depreciation rates are typically 11% for the first 3 years, 10% from the 4th year onward, and 9% for the subsequent 3 years. Below are the specific details about car depreciation rates: 1. Regulations: The depreciation rate is 11% for the first 3 years, 10% from the 4th year onward, and 9% for the subsequent 3 years. For the first 3 years, the annual depreciation rate is 11%, resulting in a total depreciation of 33% over 3 years. From the 4th year onward, the annual depreciation rate is 10%, leading to a total depreciation of 40%. For the subsequent 3 years, the annual depreciation rate is 9%, resulting in a total depreciation of 27%. According to tax regulations, the depreciation period for passenger cars is 5 years, with a residual value rate of 5%. 2. Impact: The higher the depreciation rate, the worse the vehicle's condition and the lower its residual value.
I remember researching this when buying a car. The car depreciation rate refers to the percentage of value lost after purchasing a vehicle, and it's not a fixed number. Generally, a new car may depreciate by 20% to 30% in the first year, which is quite shocking. After three years, it can drop to just half its original value, and after five years, it's even worse—losing 60% to 70% is common. The key factor is the brand—Japanese cars like Toyota and Honda have higher resale values due to their reliability, while European cars like Mercedes and BMW depreciate slightly slower but suffer from higher maintenance costs. Mileage is a major enemy—exceeding 10,000 kilometers per year accelerates depreciation, and poor maintenance or accidents make it worse. I advise new car owners to perform regular maintenance, avoid long-distance trips, and check market trends when trading in. Ultimately, a higher depreciation rate means greater financial loss, so choosing well-reviewed models can save more—it deeply impacts your wallet.
