How to Calculate the Depreciation Rate of a New Car?

[LaAngelo]

Average Age Method Calculation Formula: The annual depreciation amount under the average age method equals the original value divided by the estimated useful life. Formula: Depreciation is calculated based on the mileage driven, with the depreciation amount equaling the original value multiplied by (mileage already driven divided by the estimated total mileage). Double Declining Balance Method Calculation Formula: The depreciation percentage equals 2 divided by the estimated useful life, and the annual depreciation amount equals the value at the beginning of the year. Sum-of-the-Years'-Digits Method Formula: The depreciation amount equals the original value multiplied by (remaining useful life divided by the sum of the useful life years).