How much value a car loses each year
Depreciation is the difference between what was paid for a new car and what the market is willing to pay for it later on. The fall is not even: the hardest blow comes in the first twelve months, when the vehicle goes from “new” to “used”, and the curve flattens afterwards.
The table below is a general estimate from the motor industry: it does not come from a measurement carried out in Panama and it does not describe any brand or model. It is an order of magnitude, not a valuation.
| Age of the car | Value retained (general estimate) | Example with a 30,000-dollar car |
|---|---|---|
| 1 year | 80% to 85% | 24,000 to 25,500 dollars |
| 2 years | 70% to 75% | 21,000 to 22,500 dollars |
| 3 years | 60% to 65% | 18,000 to 19,500 dollars |
| 4 years | 52% to 58% | 15,600 to 17,400 dollars |
| 5 years | 45% to 50% | 13,500 to 15,000 dollars |
How depreciation is measured
There are two usual ways of calculating it:
- Retention against the new price. The used price is divided by the price the car had when new. If a 30,000-dollar car is resold for 24,000, it retains 80% and has depreciated by 20%.
- Comparison between model years. The price of a used car from a given year is compared with that of the same model from a more recent year. It sets two used cars against each other, so it is not equivalent to the previous measure.
One caveat applies to both methods: classified portals show prices asked by the seller, not closing prices, so they indicate the direction of the market and not the exact value of a vehicle.
Factors that speed up or slow down the loss of value
| Factor | Speeds up depreciation | Slows it down |
|---|---|---|
| Mileage | Use well above the average for the age of the car | Moderate distance in line with its years |
| Servicing | Services without receipts or off schedule | Full dealership history, with invoices |
| Warranty | Cover that has expired or been voided for not following the service plan | Valid warranty that passes to the next owner |
| Used supply | Many identical units on sale at the same time | Few units available and steady demand |
| After-sales | Doubts about workshops and parts availability | A known service network and parts in stock |
| New model | Heavy dealership discounts or a recent redesign | Stable list prices and a current generation |
According to Acodeco data reported by Infobae, failure to honour warranties was the main reason for complaints about new cars in 2026, with close to 78% of cases. That explains why anyone buying a used car values cover that is still active so highly: it reduces the risk of inheriting an expensive repair. One example of long cover is that of JETOUR, whose official distributor in Panama, Petromotors, publishes 7 years or 200,000 km. The rule holds for any brand: what counts is how much warranty the vehicle has left on the day of resale and whether the conditions allow it to be transferred.
A growing market that changes the rules of resale
Fernando Tristán, of ADAP, told TVN on 1 October 2026 that more than 40,000 units had been sold up to August and that the year could close at around 65,000. More new-car sales mean, over time, a larger second-hand supply, and an abundant supply pushes prices down.
The other change is one of origin. Chinese brands went from 24.5% to 29.9% of sales between January and July 2026 compared with the same period of the previous year, according to ADAP data published by Infobae: almost one in three new cars in Panama is Chinese. Many have been in the country for only a few years and do not yet have a long resale history. The points worth checking are in the guide to buying a Chinese car in Panama.
Five practices that help a car hold its value
- Documented servicing. Services carried out at the dealership and on time, with every invoice kept, are the easiest proof to show a buyer.
- Warranty in order. It is worth knowing the conditions that keep it valid and confirming in writing whether it transfers to the new owner.
- Cosmetic care and complete originals. Paintwork, upholstery and wheels in good condition, plus the factory accessories and both sets of keys, weigh on the offer.
- Version and colour in demand. Anyone buying with a view to reselling gains by choosing fast-moving configurations.
- A cross-checked price. Before an advert is published, it is useful to compare units of the same model, year, version and mileage.
What nobody answers yet
- At what price do used-car sales in Panama actually close? There is no public database of closing prices. Only the asking prices in classifieds are visible.
- How will the brands that arrived recently perform at five years? There are not yet enough units of that age on the road to draw a curve of their own.
- How much value does a used plug-in hybrid or electric car retain in the country? The condition of the battery will be decisive at resale, but there is no public Panamanian figure on how the second-hand market is valuing it.
Frequently asked questions
How much does a new car depreciate in Panama in the first year?
There is no official Panamanian figure. As a general industry estimate, a new car loses between 15% and 20% of its value in the first year, although the result varies with the brand, the model, the mileage and the servicing.
How is a car’s depreciation calculated?
The used price is divided by the price the car had when new. If a 30,000-dollar car is resold for 24,000, it retains 80% of its value and has depreciated by 20%.
Does the warranty affect resale value?
Yes. A valid warranty that passes to the next owner reduces the risk for whoever buys the used car.
Is there an official car depreciation table in Panama?
There is no public database of closed resale prices. Classifieds only show asking prices.
Related articles
- Guide to buying a Chinese car in Panama
- Best-selling car brands in Panama
- Almost one in three new cars in Panama is Chinese
- Plug-in hybrids in Panama
Sources
- TVN, ADAP sales figures and projection (1 October 2026).
- La Prensa, new car sales in Panama in 2025 (ADAP data).
- La Prensa, new car sales in the first half of 2026 (ADAP data).
- Octanos Media, 10.6% growth in the first half of 2026 (9 July 2026).
- Infobae, share of Chinese brands and warranty complaints (ADAP and Acodeco data, 14 September 2026).
- Petromotors, 7-year or 200,000 km warranty.
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