Where Does Automobile Physical Depreciation Typically Occur?
2 Answers
Physical and chemical aspects. Below are detailed explanations of the relevant content: 1. Automobile Physical Depreciation: During the storage and use of a vehicle, value depreciation occurs to the vehicle entity due to physical and chemical reasons, i.e., the effects of natural forces. Physical depreciation includes tire wear, paint fading, interior aging, inevitable scratches and dents, and electrical component wear. 2. Automobile Intangible Depreciation: Advances in technology reduce the cost of remanufacturing vehicles with the same structure or introduce models with better performance and higher efficiency, leading to value depreciation and devaluation of existing vehicles. Examples include normal engine wear, bearing wear, wear of all components during regular driving, and mileage depreciation. For instance, the consumption of engine oil and gasoline in cars is visible and thus called physical consumption, while wear and tear in machine usage that becomes apparent only over time is referred to as intangible consumption.
Automobile physical wear and tear typically occurs on frequently used components. For instance, I always feel that the engine's internal parts wear out due to prolonged operation, especially the pistons and bearings which are prone to damage during high RPM or cold starts. The gear friction in the transmission system is also quite noticeable, with the gearbox responding more sluggishly during acceleration. Additionally, daily-used suspension components like springs and shock absorbers deform and age faster after experiencing significant vibrations on bumpy roads. For the interior, prolonged use leads to leather cracking on the steering wheel and seats, or cushioning collapse. Generally, poor driving habits accelerate wear and tear. It's advisable to regularly check fluids and replace parts to delay these issues.
