The value of a car depreciates by 15% annually. If the car was purchased for $30,000, what is its approximate value after 3 years?

Thu, 16 Apr 2026 23:37:53 +0000

**Intro: The Hidden Cost Most Don’t Expect – The Value of a Car Depreciates by 15% Annually** Driving a new car is often seen as a milestone—but behind every purchase lies an ongoing financial shift: depreciation. Every year, vehicles lose value, and the commonly cited rate of 15% annually shapes long-term ownership costs in the U.S. market. With car prices climbing across the country, understanding how quickly depreciation hits behind a $30,000 purchase reveals critical insights for buyers, investors, and everyday motorists. If your car costs $30,000 and depreciates 15% each year, what’s left on your dashboard after three years? This straightforward calculation reflects a widespread economic reality—and growing interest in managing car-related expenses wisely. As fuel costs rise, maintenance demands increase, and buying cycles stretch longer, tracking depreciation is more relevant than ever. Let’s explore how the numbers add up and why this metric matters beyond headlines. **Why the value of a car depreciates by 15% annually. If the car was purchased for $30,000, what is its approximate value after 3 years?**