What is the Depreciation Period for Automobiles as Fixed Assets?
2 Answers
Automobiles have a depreciation period of 4 years. The maintenance methods for daily vehicle use are as follows: 1. Regularly inspect brake pads: Brake pads should be checked periodically, with front brake pads inspected at 30,000 kilometers and rear brake pads inspected at around 60,000 kilometers. Replace them promptly if they are significantly worn. 2. Rotate tires: Tires should be cross-rotated at 30,000 kilometers—switching front tires to the rear—to extend their service life. 3. Warm up the engine when starting cold: Allow the engine to idle for about a minute and a half when starting a cold vehicle to give it time to warm up. At startup, the engine's internal temperature will not yet have reached its normal operating temperature—90 degrees on the coolant temperature gauge is normal. The vehicle may shake, the engine may sound louder, and the tachometer may read slightly higher, typically between 600 and 900 RPM. Starting under these conditions can lead to carbon buildup in the engine because combustion is incomplete at low temperatures.
The depreciation of automotive fixed assets, as I recall, is generally around 4 years. Back when I worked at a car repair shop helping customers, businesses often asked about this. The tax rules are set up this way to gradually allocate the asset value, avoiding significant losses all at once. Cars depreciate quickly as they age—engine wear and rapid technological advancements impact their residual value. Proper maintenance can extend a vehicle's lifespan, such as regular servicing and part replacements. A well-maintained car can still be in service after 5 years, making it financially beneficial for tax savings. For fleet management, this depreciation period is crucial—the money saved can be reinvested in new vehicle insurance or equipment upgrades. My personal recommendation is to conduct monthly vehicle inspections, prioritizing safety without cutting corners. From practical experience, well-planned depreciation strategies can support a company's sustainable growth and minimize unnecessary expenses.
