Depreciation calculator.
| Year | Residual % | Estimated value |
|---|---|---|
| 0 (MSRP) | 100% | $250,000 |
| Year 1 | 65% | $162,500 |
| Year 2 | 55% | $137,500 |
| Year 3 | 48% | $120,000 |
| Year 4 | 43% | $107,500 |
| Year 5 | 39% | $97,500 |
CPO sweet spot: Year 3 sits where initial depreciation has absorbed but warranty / CPO programs typically remain available. Editorial central case for first-time Bentley buyers.
Industry composite estimate (Hagerty / KBB / Edmunds), 2024. Verify against current dealer offers. Estimates only — model-year, mileage, options, condition, and dealer-region all materially affect realized residual.
How the model works
The depreciation model is built on three inputs: model-year demand curves from KBB and Edmunds, manufacturer redesign cycles, and collector-grade adjustments from Hagerty for cars that fit the investment profile. Output is the central tendency for a typical condition, typical mileage example. Real-world outcomes vary by options, condition, regional market, and seasonal timing.
For curated examples of specific cars currently sitting at the value-trough plateau of their curve, see Editor's Pick. For a target-price calculator that uses these curves to adjust the midpoint of comparable listings, see the target price calculator.
Frequently asked questions
What is the depreciation sweet spot for a luxury car?
For most luxury vehicles, the depreciation curve is steepest in the first three years; the fourth to sixth year typically offers the best dollar-per-condition balance for a CPO buyer. Limited-production and special-edition cars can break the pattern entirely — some appreciate from year one.
Where does the depreciation data come from?
The model pulls from KBB, Edmunds, J.D. Power, and Hagerty for collector-grade segments. Each output is dated to the source pull. Mileage, condition, and options materially affect actual outcomes — the model surfaces the central tendency, not the floor or ceiling.
Why does the same model depreciate differently across years?
Depreciation tracks model-year demand, supply (production volume and allocation policy), redesign cycles, and the broader luxury used-market climate. A 2018 Porsche 911 GT3 and a 2020 Porsche 911 GT3 follow different curves because supply, demand, and the introduction of the next generation differ.