What is the standard for vehicle scrap residual value?
1 Answers
Vehicle residual value refers to the remaining usable value within the prescribed reasonable service life of the vehicle. Taking a new car with a service life of 10 years as an example to calculate the depreciation rate of used cars, the period from the start of use to scrapping can be considered as 100 points. Thus, the total depreciation rate over 10 years is set at 100%, with 15% being the fixed residual value and 85% being the floating depreciation value. Below is extended information: Calculation method: Generally, the depreciation period of used cars is divided based on the time until scrapping, which can be segmented into three phases: the first 3 years, starting from the 4th year, and the last 3 years before scrapping. Typically, the depreciation rates are: 11% for the first 3 years, 10% starting from the 4th year, and 9% for the last 3 years. For the first 3 years, the annual depreciation rate is 11%, resulting in a total depreciation rate of 33% over 3 years; starting from the 4th year, the annual depreciation rate is 10%, with a total depreciation rate of 40%; for the last 3 years, the annual depreciation rate is 9%, with a total depreciation rate of 27%. For a brand-new car that has not been used, its total depreciation rate over 10 years would be: 33% + 40% + 27% = 100%.
