Index
What is depreciation and why is it the biggest cost of owning a car
The depreciation curve: how much a car loses each year
Factors that speed up or slow down depreciation
Depreciation by engine type in 2026
The brands and models that retain value best
The brands and models that retain value worst
How to calculate how much your car has lost
When is the best time to sell based on depreciation
Frequently asked questions
Depreciation is the biggest cost of owning a car. Bigger than fuel, bigger than insurance, bigger than maintenance. And yet, it is the most invisible expense: it is not paid every month with a bill, but rather accumulates silently until the day you sell and discover that your car is worth half of what you paid.
A new car costing 25,000 euros can lose between 5,000 and 7,000 euros in value in the first year alone. By year three, the accumulated loss can exceed 12,000 euros. By year five, more than 15,000. These numbers are not exceptions: they are the market average.
Understanding how depreciation works gives you a huge advantage when deciding when to sell your car, because every month you wait without a specific plan is money lost.
What is depreciation and why is it the biggest cost of owning a car
Depreciation is the difference between what you paid for your car and what the market is willing to pay you today. It is a loss of value that occurs due to use, the passage of time, wear and tear, and changes in supply and demand.
To put it into perspective, an average car costing 25,000 euros has these approximate annual costs. Fuel: 1,500-2,000 euros. Insurance: 400-800 euros. Maintenance: 500-800 euros. MOT (ITV) and taxes: 100-300 euros. Depreciation: 2,000-4,000 euros. Depreciation is, by far, the biggest item.
The difference with other costs is that depreciation is not felt on a day-to-day basis. You don't take your wallet out to pay for it. It just happens, and you only notice it when you go to sell. That's why most owners ignore it. And that's why understanding it puts you at an advantage.
The depreciation curve: how much a car loses each year
Depreciation is not linear. A car loses more value at the beginning and less as it ages. The general curve for an average car in Spain in 2026 follows this pattern.
On registration (Day 1). The car loses between 18% and 22% of its value just by having plates put on it. A new car costing 25,000 euros is instantly worth 19,500-20,500 euros as a "nearly-new car with 0 km". This loss is immediate and inevitable.
Year 1. Accumulated loss of 20-30% compared to the purchase price. A 25,000-euro car is worth 17,500-20,000 euros at the end of the first year (depending on brand and model).
Year 2. Accumulated loss of 30-40%. Value: 15,000-17,500 euros.
Year 3. Accumulated loss of 40-50%. Value: 12,500-15,000 euros. After three years, half the price has already evaporated on many models.
Years 4-5. The curve flattens out. The annual loss drops to 8-12%. The car is worth between 10,000 and 13,000 euros.
Years 6-10. Depreciation stabilises at 5-8% per year. The car is worth between 5,000 and 10,000 euros, depending on condition and mileage.
Over 10 years. Depreciation depends more on mechanical condition and history than on age itself. A well-maintained 12-year-old car can be worth more than a neglected 8-year-old one.
Factors that speed up or slow down depreciation
Not all cars lose value at the same rate. There are factors that speed up depreciation and others that slow it down.
What speeds up depreciation
Diesel engines. LEZ (ZBE) restrictions have accelerated the depreciation of diesels, especially those without a C label. A diesel with a B label can lose between 8% and 12% annually, compared to 5-7% for an equivalent petrol car.
Diesels are depreciating faster than ever. Check how to sell your diesel car in 2026.
High production and leasing fleets. When a model is sold in large numbers to leasing companies, thousands of units return to the used market at the same time (when the leasing contracts end). This flood of supply drives down prices. The Dacia Sandero and the Renault Captur are clear examples: according to recent data from the OCU, they can lose up to 40% of their value in the first two years, partly due to the high volume of units on the market.
First-generation electric cars. Technology is moving so fast that electric cars from 3-4 years ago (with shorter range, slower charging) compete with much more capable new models at the same or lower price. The depreciation of electric cars can exceed 50% in three years.
Poor reliability reputation. Brands perceived as unreliable (due to breakdowns, high maintenance costs or poor after-sales service image) depreciate faster. Used car buyers look for peace of mind, and brands with a poor reputation do not offer it.
Without an environmental label. Cars without a label (petrol before 2001, diesel before 2006) are losing value at an accelerated rate due to the LEZ restrictions that expand every year.
What slows down depreciation
ECO or ZERO label. Cars with these labels depreciate between 10% and 15% less than pure combustion vehicles, because they have no traffic restrictions and offer tax advantages (discounts on road tax/IVTM, free parking in many cities).
Brands with a reputation for reliability. Toyota and Lexus are the undisputed champions of value retention. Their reputation for reliability means used buyers are willing to pay more. A 3-year-old Toyota Corolla Hybrid can retain 55-60% of its original value.
Low supply on the used market. Models that sold poorly as new have low supply on the second-hand market, which keeps prices up. Limited production cars or niche brand cars depreciate less.
Full service history. A car with a full service history from an official dealership retains between 5% and 10% more value than the same model without a history.
In-demand equipment. Automatic gearboxes, panoramic roofs, 360-degree cameras and driver assistance packages slow down depreciation because used buyers actively look for them.
Depreciation by engine type in 2026
The engine type is the factor that most influences depreciation in the current market, even more than the brand.
Engine Type | Average 3-year depreciation | Trend |
|---|---|---|
Self-charging hybrid (HEV) | 35-45% | The lowest. High demand, ECO label |
Petrol with C label | 40-50% | Stable. Market benchmark |
Plug-in hybrid (PHEV) | 42-52% | Moderate. Improving due to ZERO label |
Diesel with C label | 45-55% | On the rise. LEZs pressure demand |
Pure electric (BEV) | 50-60% | The highest. Technology moves fast |
Diesel with B label | 55-65% | Accelerating. Increasing restrictions |
The most relevant data: self-charging hybrids depreciate less than any other engine type. This confirms a trend that has consolidated over the last two years and is unlikely to reverse in the short term.
The brands and models that retain value best
Brands that retain value best
Toyota. It is the brand that most consistently retains its value in Spain. The Toyota Yaris Hybrid, Corolla Hybrid and RAV4 Hybrid are among the cars that depreciate the least on the market. A reputation for reliability, low maintenance costs and the ECO label are the perfect combination for resale.
Toyota hybrids retain their value the best. Check why hybrids sell quickly.
Lexus. As Toyota's premium brand, it inherits the reliability and adds the luxury factor. The Lexus UX, NX and RX Hybrids retain their value exceptionally well.
Porsche. In the premium segment, Porsche retains more value than BMW, Mercedes or Audi. The Cayenne, Macan and 911 have used demand that supports prices.
Dacia (with caveats). Dacias depreciate a lot in percentage terms (up to 40% in two years according to the OCU), but because they start at a low price, the loss in absolute euros is smaller. A Dacia Sandero that cost 12,000 euros and depreciates by 40% loses 4,800 euros. A BMW 3 Series that cost 45,000 euros and depreciates by 35% loses 15,750 euros. In absolute euros, the Dacia loses far less.
Specific models that retain value best (2026)
Toyota Yaris Hybrid: retains ~60% after 3 years
Toyota Corolla Hybrid: retains ~55-60% after 3 years
Toyota RAV4 Hybrid: retains ~55% after 3 years
Porsche Macan: retains ~60-65% after 3 years
Lexus NX: retains ~55-60% after 3 years
The brands and models that retain value worst
Brands with accelerated depreciation
Dacia and Renault (mainstream models). The Dacia Sandero Stepway and the Renault Captur top the OCU lists for highest depreciation, with losses close to 40% in just two years. High production, leasing fleets and the perception of a low-cost brand push prices down.
Jaguar and Land Rover. High maintenance costs and a perception of low reliability mean these cars depreciate faster than their German competitors. A Jaguar XE or a Land Rover Discovery Sport can lose 60-65% of their value in 5 years.
First-generation electric cars. Models like the Nissan LEAF 40kWh, the Renault ZOE or the BMW i3 depreciate very quickly because they compete with new electric cars that offer twice the range at the same price.
Mainstream diesels without a C label. Diesel Citroëns, Opels and Fiats from before 2015 are the ones losing value fastest, because they combine a mainstream brand + declining engine type + LEZ restrictions.
First-generation electric cars depreciate very quickly. Check our guide on selling a used electric car.
How to calculate how much your car has lost
You can make a quick estimate with this simplified calculation.
Step 1: Original car price. What you paid (or the list price if you bought it second-hand).
Step 2: Apply the annual depreciation coefficient.
Age | Estimated residual value (% of original price) |
|---|---|
1 year | 70-80% |
2 years | 60-70% |
3 years | 50-60% |
4 years | 45-55% |
5 years | 38-48% |
7 years | 28-38% |
10 years | 15-25% |
Step 3: Adjust for specific factors. Add 5% if it is a hybrid with an ECO label. Subtract 5% if it is a diesel with a B label. Add 3-5% if it has a full service history. Subtract 3-5% if its mileage is above average. Add 3-5% if it is a brand that retains value well (Toyota, Lexus, Porsche). Subtract 3-5% if it is a brand with poor retention (Jaguar, Maserati).
Example. You bought a Hyundai Tucson 1.6 GDi for 28,000 euros 4 years ago. Base residual value: 45-55% = 12,600-15,400 euros. It is petrol with a C label (no adjustment). It has a full history (+3%): 13,440-16,170 euros. Normal mileage (no adjustment). Estimated range: 13,400-16,200 euros.
But the best way to know the real value is not a theoretical calculation: it is getting real offers. The Dealcar valuation tool gives you a valuation in 30 seconds, and then more than 1,000 dealerships can send you offers reflecting what the market is paying today. Not what a table says, but what a buyer with money is willing to give you.
For a complete guide to the factors that determine value, check how to find out how much your car is worth.
When is the best time to sell based on depreciation
Depreciation gives you a clear hint on when to sell to minimise your loss.
The sweet spot: 3-4 years. At 3-4 years, the car has already absorbed most of the initial depreciation (the hardest hit of the first year has passed). From here, the curve flattens out. If you sell at 3-4 years, you recover the maximum relative value before continued depreciation keeps eating away at it.
Sell before a model update. When the manufacturer launches a new generation of your model, the previous generation loses value sharply. If you know your model is being updated next year, selling before the launch protects you from that drop.
Sell before a regulatory change. LEZ restrictions are progressively tightening. If your car has a B label, every announcement of new restrictions pushes its price down. Selling before the next phase of restrictions comes into effect gets you a better price.
Do not wait "for the market to go up". Cars are not real estate. Unlike a house, a car is never going to be worth more next year than it is today (with the exception of classic cars). Every month you wait without a specific plan is depreciation you are losing.
Waiting without a plan is one of the mistakes that make you sell your car for less money.
The rule of thumb. If you have already decided you are going to sell, the best time is now. Not tomorrow, not next month, not when "the market improves". Today's price is, with very high probability, the highest you are going to get for your car.
Dealcar: value your car for free and find out what it's worth today
Theoretical depreciation gives you a benchmark. Real offers give you the exact figure. With Dealcar, you value your car for free in less than 30 seconds and receive offers from over 1,000 dealerships competing with each other.
Don't lose any more value by waiting. Every month that goes by, your car is worth less.
100% free for you. No commissions or hidden costs.
You get paid before handing over the keys. Bank transfer before delivering the car.
They collect the car from your home. No travel required.
No paperwork. The buyer handles the transfer, DGT, and all the paperwork.
On average, 1,400 euros more than selling on Wallapop.
More than 12,000 cars sold and an average rating of 4.9 out of 5.
Frequently asked questions
How much value does a car lose when leaving the dealership?
Between 18% and 22% of its value, just by being registered. This is the biggest and fastest loss in the entire lifespan of the car. A 25,000-euro car drops to a value of 19,500-20,500 euros the day it is registered.
Which cars depreciate the least?
Self-charging hybrids from brands with a good reputation for reliability (Toyota, Lexus). The combination of an ECO label, low fuel consumption and proven reliability is what retains value best in the 2026 market.
Do electric cars depreciate a lot?
Yes. Electric cars have the fastest depreciation on the market: they can lose 50-60% of their value in three years. The reason is that technology is moving fast and new models offer more range and better prices, which puts pressure on used ones.
How can I reduce my car's depreciation?
You can't avoid it, but you can minimise it: keep the service history up to date, look after the interior, don't accumulate unnecessary mileage and sell at the right time (before model changes or regulatory updates). The most important decision is when to sell, not how to preserve.
Is depreciation the same in all autonomous communities?
Almost. Regional differences are smaller than differences by brand, model or engine type. The only significant regional factor is the environmental label in cities with LEZs: a car without a label loses more value in Madrid or Barcelona than in a small town without restrictions.
