Valuation & Pricing 4 min read

Car Depreciation Rates in Australia: How Much Value Does Your Car Lose?

New cars lose 20–30% of their value in the first year. Here's how Australian car depreciation works across different makes and segments.

Average depreciation by year

Australian car depreciation follows a consistent curve for most mainstream vehicles:

  • **Year 1:** 15–25% value loss (the steepest drop — mostly from being 'used' rather than 'new')
  • **Year 2:** 8–12% loss
  • **Year 3:** 8–10% loss
  • **Years 4–5:** 6–8% per year
  • **Years 6–10:** 5–7% per year

The 2021–2022 period was an anomaly: global supply shortages caused used car values to increase in some segments, with resale values exceeding new purchase prices for certain popular models.

Which cars depreciate slowest in Australia?

Vehicles that hold value best tend to share these characteristics: strong reliability reputation, high demand relative to supply, low operating costs.

**Best depreciators:**

  • Toyota HiLux (consistently #1)
  • Toyota Land Cruiser
  • Mazda CX-5
  • Toyota RAV4
  • Subaru Forester
  • Ford Ranger (2022+)

**Worst depreciators:**

  • European luxury sedans (Mercedes C-Class, BMW 3 Series)
  • Certain Korean and Chinese brands in earlier years

Frequently asked questions

How do I calculate my car's depreciation?

Check the current market value on Redbook.com.au or CarsGuide and compare it to what you paid. Divide the loss by the original purchase price for a percentage.

Does high km accelerate depreciation?

Yes, significantly. A car with 150,000 km is worth considerably less than an equivalent model with 60,000 km, even if the same age.

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