See exactly how much your vehicle loses in value each year — and find the smartest time to sell or trade in.
Common Canadian vehicles — click to populate
| Year | Vehicle Value | Lost This Year | % of Original |
|---|
Depreciation is the reduction in a vehicle's market value over time. It is the single largest cost of vehicle ownership — often exceeding fuel, insurance, and maintenance combined. Yet most Canadians never factor it into their vehicle budget.
A new vehicle typically loses 20–25% of its value in the first year alone — the moment you drive it off the lot. This is why a one-year-old certified pre-owned vehicle can offer such strong value: someone else absorbed that initial drop, and you get a nearly-new vehicle at a significantly lower price.
Most vehicles hit a "depreciation sweet spot" around years 3–5, where the steepest drop has already occurred but the vehicle still has many reliable years ahead. Selling in this window often gives the best balance between what you recover and what a buyer will pay.