How fast a car loses value
A new car typically loses 15-20% of its value in the first year and roughly half within five. It is the only major household asset guaranteed to be worth less next year, which shapes both the loan tenure and the purchase decision.
What it means
A new car typically loses 15-20% of its value in the first year and roughly half within five.
Why it matters to a household
It is the only major household asset guaranteed to be worth less next year, which shapes both the loan tenure and the purchase decision.
Where it trips people up
Taking a seven-year car loan. In the later years you can owe more than the car is worth, which makes selling it complicated.
In an Indian household
Value it at realistic resale price, not on-road price. The gap on a two-year-old car is usually larger than owners expect.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How fast a car loses value
A new car typically loses 15-20% of its value in the first year and roughly half within five.
Why does it matter?
It is the only major household asset guaranteed to be worth less next year, which shapes both the loan tenure and the purchase decision.
What do people usually get wrong?
Taking a seven-year car loan. In the later years you can owe more than the car is worth, which makes selling it complicated.
Is there anything India-specific?
Value it at realistic resale price, not on-road price. The gap on a two-year-old car is usually larger than owners expect.