A car depreciates in value by 15% each year. If it was initially worth $30,000, what is its value after 3 years?

Sat, 02 May 2026 08:49:48 +0000

**Why Is a Car Worth 15% Less Each Year? Understanding Depreciation—and How It Impacts Your Investment** Today, many US consumers are turning their attention to a clear financial reality: a new car loses value fast—often about 15% the first year, and consistently over the next few. If a vehicle starts at $30,000, what happens to its worth after three years? This question reflects growing interest in how long-term vehicle ownership affects household spend, and why making thoughtful decisions early matters more than ever. With rising economy-wide expenses and shifting transportation habits, understanding depreciation isn’t just about numbers—it’s about smarter purchasing and financial planning. ### Why Depreciation Matters—Trends in the US Market Car depreciation, especially the 15% annual rate, is more than a textbook concept—it reflects real-life buyer experiences. Over the past decade, US consumers have observed younger vehicles quickly losing value, influenced by shifting market dynamics like rising used car inventory, changing fuel costs, and evolving preferences toward electric options. This trend has increased public awareness, turning depreciation from a backseat topic into a central part of vehicle investment conversations. For many, knowing their car’s future value shapes decisions on purchase timing, financing, and long-term ownership costs.