Car depreciation per mile: estimate the hidden driving cost
Combine purchase price, resale estimate and mileage to see the ownership cost that fuel-only comparisons miss.
Separate value loss from running costs
Estimated depreciation = purchase price − expected resale value. Divide that loss by expected miles or kilometres over the ownership period to find a per-distance figure. This is an average planning measure; value rarely falls at a constant rate, and resale is uncertain.
Work a five-year example
Buy a vehicle for 30,000 and assume it sells for 15,000 after five years and 75,000 km. Value loss is 15,000, or 0.20 per km. If fuel, insurance, service and other running costs total 20,000, total modeled cost is 35,000, about 0.47 per km before financing interest and fees.
Avoid double counting
If purchase price and resale value are in the model, do not also add the principal part of loan payments; that would count the car twice. Add financing interest and fees separately. Change resale and mileage assumptions to see how much the answer moves, and compare lease limits, repair risk and taxes where relevant.
Try it and keep reading
Try your numbers in vehicle depreciation, vehicle ownership cost. Then read the related guide for context and assumptions.