How Many Years Do Cars Generally Last Before Being Replaced?

[DiAurora]

Domestic car owners typically replace their vehicles every 4.5 to 6.3 years. Here are the relevant details: 1. Depreciation Rate: The depreciation rate is the ratio of the depreciation amount of fixed assets to their original value, reflecting the degree to which the value of fixed assets is transferred to product costs or related expenses over a certain period. Annual depreciation rate = (1 - Estimated net residual value rate) ÷ Estimated useful life (years) × 100% Monthly depreciation amount. 2. Depreciation Method: The straight-line method is generally used, firstly because it is simple and easy to apply, and secondly because it complies with the relevant provisions of the "Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China." Article 59 of these regulations clearly states that "depreciation calculated using the straight-line method for fixed assets is deductible." Article 60 further stipulates the minimum useful life for calculating depreciation of fixed assets: "Transportation tools other than airplanes, trains, and ships, 4 years."