Car Depreciation Calculator
Calculate your car's depreciation over time using South African average rates. See projected resale values year by year for sedans, SUVs, bakkies, and luxury vehicles.
SA Car Depreciation Rates by Type
| Vehicle Type | Year 1 | Year 2 | Years 3+ | Value After 5 Years |
|---|---|---|---|---|
| Sedan / Hatchback | 20% | 15% | 12%/yr | ~46% of new price |
| SUV / Bakkie | 15% | 12% | 10%/yr | ~54% of new price |
| Luxury / Sports | 25% | 18% | 14%/yr | ~37% of new price |
| Commercial | 18% | 14% | 11%/yr | ~49% of new price |
Approximate averages. Actual depreciation depends on mileage, condition, service history, and market demand.
The True Cost of a New Car
Over 5 years, the total cost of ownership on a R400,000 car typically includes:
- Depreciation: R160,000-R240,000 (40-60% of purchase price)
- Interest on finance: R40,000-R60,000 at current rates
- Insurance: R60,000-R150,000 (R1,000-R2,500/month)
- Fuel: R90,000-R300,000 depending on km driven
- Service and maintenance: R25,000-R75,000 after warranty
Year-by-Year Depreciation Schedule
| Year | Book Value | Adjusted Value | Insurance Value | Annual Loss | Neg. Equity |
|---|---|---|---|---|---|
| Year 0 | R 350 000 | R 344 167 | R 326 958 | — | — |
| Year 1 | R 297 500 | R 292 542 | R 277 915 | -R 52 500 | — |
| Year 2 | R 261 800 | R 257 437 | R 244 565 | -R 35 700 | — |
| Year 3 | R 230 384 | R 226 544 | R 215 217 | -R 31 416 | — |
| Year 4 | R 202 738 | R 199 359 | R 189 391 | -R 27 646 | — |
| Year 5 | R 178 409 | R 175 436 | R 166 664 | -R 24 329 | — |
| Year 6 | R 157 000 | R 154 384 | R 146 664 | -R 21 409 | — |
| Year 7 | R 138 160 | R 135 858 | R 129 065 | -R 18 840 | — |
SA Market Context
Best value retention: Toyota (especially HiLux, Fortuner) holds value best in SA — often 50-60% after 5 years. The HiLux has dominated SA sales charts for decades.
Negative equity risk: At 12.0% annual depreciation, Toyota vehicles can be worth less than the outstanding finance in the first 2-3 years. Always consider GAP insurance.
Insurance tip: Ensure your vehicle is insured for retail value (what you'd pay at a dealer), not trade value. The difference can be significant after year 2.