The loss in value of a car depends on these factors

What LA City Cars can do for you is to trade your used car for a completely certified, and inspected car that is validated and road worthy. 

Not the gas, not the insurance, not the taxes—the loss of value of a car is the biggest loss factor. This is especially true when buying a new car. Because as soon as you roll the new car out of the dealer’s yard, the vehicle has already lost a large part of its value. In the first year, it is assumed that there will be a loss of around 25 percent in value, which is, of course, a huge loss. 

LA City Cars offers a simple solution for anyone who wants to sell their used car quickly and fairly without tying the sale to any conditions.

LA City Cars offers you a free evaluation system that is carried out both online and on site. With our honest and traditional calculator, you can quickly find a statistical reference value. This is based on your car data, which includes the make, model, mileage, and year of first registration.
Following the online assessment, one of our automotive experts will closely examine your vehicle during the appointment. In order to calculate an individual car value, the condition of the car must be determined. But the current market situation and existing special equipment are also taken into account.

The factors in detail are: 

Year of manufacture and mileage 

One of the most important factors in depreciation is the year of manufacture and mileage. The older a car, the greater the loss in value. The value of a used vehicle decreases massively, especially in the first few years. After four to five years, the car is usually only worth 50 percent. Of course, it always depends on the mileage. Whether the vehicle is only used for everyday city trips or serves as a mile-eater for company is, of course, reflected in the residual value of the car. 

Make and model 

In addition to age and mileage, the brand and model also play a major role in the loss of value. For a hybrid Toyota, for example, the new price will never fall as much over the same period as a Ford or Chrysler. Plain and simple, because traditionally, the demand for hybrid Toyota on the used car market is particularly high. 

Color and varnish 

No matter how great the car looks in red or yellow, if you’re thinking about loss of value or resale, it’s better to go for muted colors—unless it’s a fire-red Ferrari. The paint also has a major influence on the resale value and, thus, the loss of value. Paint finishes in silver, black, or various shades of gray are still among the most popular and sought-after. The same applies, of course, to the interior, which should be clean and without damage. 


In addition to the paint, the equipment also contributes to its depreciation. The main thing is that certain standards must be included in the car in order to achieve a good price when resold. The must-haves now include an air conditioning and audio system, central locking with radio remote control, electric windows, the ESP anti-skid aid, parking aids, and at least four airbags. 

Compliance with maintenance intervals 

There are a lot of things you can do during the term to reduce the loss in value of your car compared to the new price. This includes, above all, good technical condition through regular inspections and compliance with the maintenance intervals specified by the manufacturer. When selling, it always makes a good impression if your car has a full service history. 

The same applies to the visual condition, both outside and inside. In order to keep the loss of value as low as possible and to achieve a good price when selling, you should ensure consistent and careful care. This includes regular cleaning and paint care as well as careful handling of the upholstery. 

Previous Owners 

The question of the owner and the type of use play a major role in the issue of loss of value. Is the vehicle used as an urban “shopping cart” or a shuttle for seniors? Or as a company car for a field worker who sometimes scrubs fifty to sixty thousand kilometers a year with it? The number of previous owners also affects the value. 


In general, careful handling also pays off in everyday use. A proactive and defensive driving style not only prevents accidents but also expensive damage. Of course, you always have to specify this when reselling. And that reduces the price. The same applies to serious defects or wear, especially in safety-relevant components such as brakes and tires. You should remove any rust spots on the vehicle immediately. 

Top 10 impairment factors 

    1. High age and mileage
    2. Neglected condition 
    3. No valid general inspection (HU) 
    4. Unusual color/paint 
    5. Lack of special equipment 
    6. High number of owners 
    7. Damage/defects
    8. Worn brakes and tires 
    9. Scratches in the paint 

How to calculate depreciation 

There is no general formula for calculating loss of value or a table in which you can find your vehicle. The factors to be taken into account are far too individual and diverse for that. In general, the higher the price of the new car, the greater the absolute loss in value. As a rule, a vehicle has lost around a third of its new price after three years and around 50 percent after five years.