Find out how much your car has depreciated and its current market value. Uses Indian insurance depreciation rates and straight-line method. Also calculates residual value at any future year.
New cars depreciate about 15-20% in the first year and 8-12% each subsequent year. IRDAI sets depreciation for insurance (IDV): 5% in 6 months, 15% at 1 year, 20% at 2 years, 30% at 3 years, 40% at 4 years, 50% at 5 years.
IDV (Insured Declared Value) is the current market value of your car, used to calculate your comprehensive insurance premium and the maximum claim amount. It decreases each year per the IRDAI depreciation schedule.
On average, a car loses 15-25% of its value in the first year and 30-40% over three years. The first year sees the steepest drop when the car goes from new to used. Luxury cars and certain models depreciate more slowly.
Maruti Suzuki models (Alto, WagonR, Swift) and Toyota (Innova, Fortuner) have the best resale value in India. Hyundai Creta and Kia Seltos also hold value well. Luxury brands typically depreciate faster due to high maintenance costs.
Under the Income Tax Act, businesses can claim depreciation on vehicles at 15% per year (reducing balance method) for most cars. Electric vehicles may qualify for higher rates. Personal vehicles are not eligible for tax depreciation.
Reducing balance (declining balance) depreciation applies the rate to the current book value each year. A car worth ₹10 lakh depreciating at 15%: Year 1: ₹8.5L, Year 2: ₹7.2L, Year 3: ₹6.1L. The amount lost each year decreases.
Typically before the 5-year mark (to avoid the steepest cumulative depreciation), before the first major service is due, and when the model year is changing. Cars with full service history and accident-free records retain value better.