Enter the purchase price and model year to calculate the current market value and future depreciation trend. Applies depreciation rates for domestic, imported, luxury, and SUV vehicles.
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Car depreciation refers to the decline in a vehicle's value over time. Within just one year of purchasing a new car, its value can drop by about 15–25%, and after five years it can fall to about 45–60% of the original price. This occurs due to various factors including physical wear, technological aging, and model changes.
Mileage (depreciation accelerates above 20,000km/year), accident history (accident-free vehicles retain higher value), maintenance records (regularly serviced vehicles have an advantage), popular colors (white/black have higher resale value), brand recognition, option specs, and regional demand all affect the depreciation rate.
In general, imported cars depreciate faster than domestic cars. This is because new car premiums are higher, maintenance costs (parts, labor) are more expensive, and they are affected by exchange rate fluctuations. Luxury imports (Mercedes S-Class, BMW 7 Series, etc.) often fall below 50% of new car price after 3 years, while popular domestic models like the Hyundai Grandeur or Kia K5 depreciate more moderately.
SUV/RV vehicles (Tucson, Santa Fe, Palisade, etc.) tend to have lower depreciation due to steady demand. Popular hybrid/EV models (IONIQ 5, Tesla Model 3, etc.) also retain high residual values. Popular colors (white, black), popular option specs, and low mileage all contribute to maintaining residual value.
For business vehicles, depreciation can be recognized as an expense under tax law. Under Korean tax law, the useful life of a passenger car is 5 years, and depreciation is calculated using the declining balance or straight-line method. From 2024, the annual depreciation limit for business passenger cars is 8 million won, and the same limit applies to leases and rentals.
The results from this calculator are reference prices based on general depreciation rates. Actual market prices can be more accurately identified through used car platforms such as KB ChaCha, Encar, and SK Encar, as well as the Insurance Development Institute's vehicle base value lookup. Comparing actual transaction prices for the same year and model is the most accurate approach.
This calculator provides reference estimates based on general depreciation trends. Actual vehicle prices may vary significantly depending on mileage, accident history, vehicle condition, and market demand.
Cars are consumer goods that begin depreciating immediately upon purchase. The moment you buy and register a new car, its value starts declining — this is called depreciation. New cars typically depreciate the most in the first year, with the rate gradually decreasing afterward.
Domestic cars: ~17% depreciation in year 1, ~37% by year 3, ~52% by year 5. Domestic brands have reasonable parts prices and extensive service networks, resulting in relatively moderate depreciation.
Imported cars: ~22% in year 1, ~45% by year 3, ~60% by year 5. Higher maintenance costs lead to steeper depreciation, though some popular models are exceptions.
Luxury cars: ~25% in year 1, ~50% by year 3, ~65% by year 5. Short new model cycles and rapid option value decline result in significant depreciation.
SUV/RV: ~15% in year 1, ~35% by year 3, ~50% by year 5. Growing demand for camping and outdoor activities keeps residual values relatively high.
Choose popular models and colors (white/black), and keep mileage at reasonable levels (under 15,000km/year). Maintaining systematic service records and using genuine parts helps preserve residual value. Selling between 3-5 years after purchase offers the best balance between depreciation and utilization.