A car depreciates by 15% each year. If its initial value is $25,000, what is its value after 3 years?

Mon, 04 May 2026 16:19:09 +0000

**Why A Car Depreciates by 15% Each Year – And What That Means for Buyers in 2025** In today’s economy, tracking how quickly vehicles lose value is more relevant than ever. With rising fuel costs, shifting consumer habits, and the ongoing search for smart long-term investments, understanding depreciation isn’t just financial savvy—it’s essential. For drivers considering buying, selling, or holding onto a vehicle, the fact that cars depreciate by roughly 15% each year — on average — remains a critical factor. If your car is worth $25,000 today, what does that mean in three years? This article breaks it down clearly, helping you make informed decisions grounded in real market trends. --- ### Why A Car Depreciates by 15% Each Year. If Its Initial Value Is $25,000, What Is Its Value After 3 Years?