How Is Car Depreciation Calculated Based on Mileage?
Car depreciation is calculated by applying an age-based baseline followed by a mileage adjustment, where every 10,000 miles driven above the average 12,000 per year reduces a vehicle’s market value by roughly 2.5%, or $500 to $1,500 in dollar terms. Excess mileage impacts resale value more sharply as vehicles age, particularly after 60,000 miles, with luxury cars facing steeper losses compared to trucks and crossovers.