UNDERSTAND THE CURVE
Car depreciation rates
Compare the planning assumptions behind the calculators. Change the years, price and kilometres to see how compounding affects each category.
Canadian dollars · Kilometres · Free planning toolsCATEGORY PLANNING ASSUMPTIONS
5-year depreciation, side by side
$40,000 starting value · 100,000 km over the period
| Category | Future value | Value kept | Dollars lost | Annual equivalent |
|---|---|---|---|---|
| $16,343 | 40.9% | $23,657 | 16.4% | |
| $14,559 | 36.4% | $25,441 | 18.3% | |
| $17,978 | 44.9% | $22,022 | 14.8% | |
| $21,414 | 53.5% | $18,586 | 11.7% | |
| $14,617 | 36.5% | $25,383 | 18.2% | |
| $19,964 | 49.9% | $20,036 | 13.0% |
Car: year by year
| Time | Total kilometres | Projected value | Loss that year | Annual loss |
|---|---|---|---|---|
| Today | 0 km | $40,000 | — | — |
| Year 1 | 20,000 km | $31,546 | $8,454 | 21.1% |
| Year 2 | 40,000 km | $26,138 | $5,408 | 17.1% |
| Year 3 | 60,000 km | $21,919 | $4,220 | 16.1% |
| Year 4 | 80,000 km | $18,818 | $3,101 | 14.1% |
| Year 5 | 100,000 km | $16,343 | $2,474 | 13.1% |
Rates compound on the remaining value. The category source uses separate first-five-year assumptions and a continuing rate after year five; mileage can change the effective annual loss above.
How these projections are made Sources & dates
This view applies AssetDropper’s six category curves and mileage assumptions to the same starting value. It does not apply model or brand adjustments.
These are new-car planning projections before selling costs, taxes and financing. They are not measured resale rankings or dealer trade-in offers. Actual condition, equipment, incentives and future supply can change the amount you receive.
Site data loaded Oct 20, 2026. Capture dates show when the site read a source; they do not establish that the source’s assumptions were published on that date.
- AssetDropper category planning assumptions (observed 20 October 2026)Publication date not supplied. Captured Oct 20, 2026.
A LITTLE MORE CONTEXT
Good questions to ask.
Are these measured Canadian depreciation rates?
These are category planning assumptions from AssetDropper, with a mileage adjustment. This reference view does not add model-specific evidence. They are not a published table of realised Canadian sales or a guarantee of future values.
Why can’t I just add the annual percentages?
Each year’s percentage applies to the value remaining at the start of that year. The equivalent annual rate shown here uses geometric compounding over the full period.
Why is the first year often different?
The supplied category curves use different assumptions for the first five years and a continuing rate after that. The annual table shows their effect at your chosen kilometres rather than assuming a single flat rate.