Quote:
Originally Posted by Bugeater
So exactly how are you supposed to calculate depreciation? When I figured up my cost per year I just spread the cost of the vehicle over the time I owned it, but that still doesn't take into account what I'd get for the vehicle when I sold it. But I don't see how you could accurately calculate depreciation without knowing what you'd get for it either.
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I paid around $20K for the car I bought last fall and will drive it for at least 10 years. If it has zero value at the end of that time period, it works out to $2000 per year.
For my last vehicle, I bought a brand new stripped down F-150 for under $11K in 1994. I drove it for 18 years and sold it for $500. That works out to about $600 of depreciation per year.