Is There a Depreciation Fee for Rear-End Collisions?
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After your car is rear-ended and the other party is fully at fault, there is no legal provision for depreciation fees, but you can negotiate with the other party regarding the depreciation fee. Here is relevant information about vehicle depreciation fees: 1. Definition of Vehicle Depreciation Fee: Vehicle depreciation fee is the financial representation of vehicle investment recovery. It involves setting aside a certain amount of funds each year to update vehicles and maintain transportation reproduction. Vehicle depreciation fees do not reflect the national economy's investment in transportation vehicles; what effectively reflects the economic price of vehicle depreciation is the vehicle's capital recovery cost. 2. Regulations on Depreciation Period: According to tax laws, passenger cars have a depreciation period of 5 years with a residual value rate of 5%. Even for used cars, the depreciation period is calculated as 5 years from the date of purchase. Tax laws stipulate the following minimum depreciation periods for fixed assets: 20 years for houses and buildings; 10 years for trains, ships, machinery, and other production equipment; and 5 years for electronic equipment, transportation tools other than trains and ships, and tools, furniture, etc., related to production and operation, with a unified residual value ratio of 5% of the original price. The higher the depreciation rate, the worse the vehicle's condition and the lower its residual value.
