A car depreciates in value by 15% each year. If it is initially worth $20,000, what will it be worth after 3 years?

Sun, 03 May 2026 07:17:37 +0000

**A Car Depreciates in Value by 15% Each Year. Does It Actually Lose That Much in 3 Years?** Ever wonder why a brand-new $20,000 car drops to less than $12,000 after just three years? This predictable drop in worth—known as depreciation—has become a central concern as buyers weigh long-term value. The common rule used across financial and consumer guides is a 15% annual loss. But how does that number translate in real life? And what does it really mean for buyers planning ahead? Understanding car depreciation helps consumers make smarter choices, whether buying, selling, or financing a vehicle. With interest rates, inflation, and consumer trends shifting, this once-invisible cost now fuels focused conversations online and in households. Many users searching “a car depreciates in value by 15% each year. If it is initially worth $20,000, what will it be after 3 years?” want clear, reliable answers—not just percentages, but context. ### Why Depreciation Accelerates and How It Impacts Value