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## How much does a car depreciate in Malaysia?

We don’t have the exact figures to account for such ‘immediate depreciation’ for vehicles in Malaysia but annually, it is estimated that a car will lose an average of **10% to 20%**.

## How much does a car’s value depreciate each year?

Depending on the new car model you choose, **10-15% of its value** normally vanishes the moment you drive it off the dealer’s lot. By the end of the first year, another 10-15% will likely be wiped off its value.

## How is car depreciation calculated?

Car Depreciation Rate Table for Calculation of IDV

Age of the Vehicle | Depreciation Rate for Calculating IDV | IDV Calculation for Maruti Swift VXi |
---|---|---|

up to 6 months | 5% | @ 95% = 5,32,000 |

6 months – 1 year | 15% | @ 85% = 4,76,000 |

1 year – 2 years | 20% | @ 80% = 4,60,000 |

2 years – 3 years | 30% | @ 70% = 4,20,000 |

## How do you calculate depreciation on a car?

What’s the formula for depreciation? To estimate how much value your car has lost, **simply subtract the car’s current fair market value from its purchase price, minus any sales tax or fees.**

## How much do cars depreciate monthly?

Average Vehicle Depreciation After Two Years

Another way to look at it, the average vehicle in year two loses **1% of its value every month**. A buyer might be paying a $400 per month car loan for the right to lose another $400 per month of value.

## How much will a car depreciate in 5 years?

AFTER FIVE YEARS: After that steep first-year dip, that new car will depreciate by 15–25% every year until it hits the five-year mark. So, after five years, that new car will lose **around 60% of its value**.

## How much do cars depreciate off the lot?

How Much Can I Expect My New Car to Depreciate? A new car depreciates or loses value almost immediately after you drive it off a dealer’s lot. As a quick rule of thumb, a car will lose **between 15% and 20% of its value each year** according to Bankrate.com.

## How do you calculate depreciation value?

**Straight-Line Method**

- Subtract the asset’s salvage value from its cost to determine the amount that can be depreciated.
- Divide this amount by the number of years in the asset’s useful lifespan.
- Divide by 12 to tell you the monthly depreciation for the asset.