What is the depreciation period for a car?

[RosalieDella]

2021 Introduction to Car Depreciation Period: 1. Sedan: According to legal regulations, depreciation starts after 5 years of use, with a residual value rate of 5%. 2. Used cars: For vehicles undergoing depreciation again, the second depreciation also begins 5 years after purchase, with a residual value rate of 5%. Below are the calculation methods for car depreciation: 1. Straight-line method: Calculation formula: Annual depreciation amount = Original value / Estimated useful life. 2. Units of production method: Calculation formula: Depreciation is calculated based on mileage driven, Depreciation amount = Original value (Mileage already driven / Estimated total mileage). 3. Double declining balance method: Calculation formula: Depreciation percentage = 2 / Estimated useful life, Annual depreciation amount = Value at the beginning of the year (Depreciation percentage), with the remaining value evenly allocated in the last two years of the estimated useful life. 4. Sum-of-the-years'-digits method formula: Calculation formula: Depreciation amount = Original value (Remaining useful life / Sum of useful life years).

[SanEmmett]

As someone who frequently buys and sells used cars, I've observed that the depreciation period for passenger vehicles is typically around 4 years. According to Chinese tax regulations, the depreciation period for enterprises is set at 4 years, but for personal use, the actual value tends to depreciate faster. New cars can lose over 30% of their value in the first two years. Market factors also play a significant role, with factors like brand reputation, high mileage, or outdated styles accelerating depreciation. I recommend choosing models with good resale value when purchasing a car, such as Japanese brands like Toyota and Honda. Proper maintenance can extend the vehicle's lifespan, allowing it to retain some value even after ten years. Understanding depreciation periods helps businesses control costs, while individuals should pay attention to the used car market to avoid frequent replacements that increase losses. In summary, depreciation isn't just about numbers; it's also about optimizing expenses and extending the economic life of the vehicle.

[LaMatteo]

In enterprise asset management, the depreciation period for passenger vehicles is 4 years, which is the standard stipulated by China's tax laws. Depreciation is typically calculated using the straight-line method, with 25% of the cost allocated each year. For example, if a car is purchased for 300,000 yuan, 75,000 yuan is allocated as an expense each year over four years, reducing taxable income. However, the actual service life may be 8-10 years, requiring good maintenance to control wear and tear. Depreciation affects tax planning. Although individual car owners are not subject to strict depreciation rules, they should also consider it. The residual value rate is generally set at 5-10%, and assets are disposed of at the end of the period. Related discussions include: choosing reliable brands can slow depreciation, while frequent replacements increase environmental pressure. Understanding these factors helps save money and optimize decision-making.

[VanClayton]

I find the depreciation of new cars quite shocking, with prices often halving in the first year or two. The depreciation period is set at four years, but market prices drop even faster. Technological advancements make older cars lose value quickly, and opting for trendy models might result in less depreciation. Personally, I don't think much about depreciation unless I'm a business owner. Choosing brands with good resale value and maintaining the car well can help minimize losses. In short, understanding the depreciation timeline helps avoid waste.