When does a car stop losing value?
A two-year-old car asks $8,000 less than a one-year-old one, the biggest step there is. After ten years the drop is so slow it barely shows. Here is the curve.
Everyone knows a new car loses value as soon as it leaves the showroom. But how fast does it keep losing it, and when does the drop slow down? We looked at the median asking price of every used car for sale in Australia in the second week of November 2026, grouped by year of build. Each figure is rounded to the nearest $500.
The curve
| Built | Age | Median price | Change from the year before |
|---|---|---|---|
| 2025 | 1 | $47,000 | |
| 2024 | 2 | $39,000 | –$8,000 |
| 2023 | 3 | $38,000 | –$1,000 |
| 2022 | 4 | $35,000 | –$3,000 |
| 2021 | 5 | $31,000 | –$4,000 |
| 2020 | 6 | $29,000 | –$2,000 |
| 2019 | 7 | $25,000 | –$4,000 |
| 2018 | 8 | $22,000 | –$3,000 |
| 2017 | 9 | $20,000 | –$2,000 |
| 2016 | 10 | $19,000 | –$1,000 |
| 2014 | 12 | $15,000 | |
| 2011 | 15 | $11,000 | |
| 2006 | 20 | $11,000 |
Three stages
The first two years cost the most. A two-year-old car asks $8,000 less than a one-year-old one, the biggest step on the curve. Buying a car at two or three years old lets the first owner take that hit.
Three to nine years is a steady slide. Through this stretch a car loses about $3,000 a year. A five-year-old car asks two-thirds of a one-year-old one. A nine-year-old car asks less than half.
After ten years the curve flattens. From ten to fifteen years old a car loses less than $2,000 a year. From fifteen years on, the median barely moves at all, and 20-year-old cars ask about the same as 15-year-old ones. By then price depends on condition, kilometres and the model, not age.
A word of caution
This curve compares different cars of different ages, not one car as it ages. The mix of models changes from year to year, and older cars include classics and sought-after models whose prices rise. That is why the 2023 step looks small and the 20-year step looks flat.
The model matters more than the average. A Toyota HiLux keeps about two-thirds of its value from one year old to five, while a Ford Ranger keeps just over half (see HiLux or Ranger: which holds its value?). Each model's own curve is in its price guide, and you can split it by version, transmission and engine.
