Vehicle & Fuel
Loss of vehicle value over time, a major component of total cost per km.
Depreciation is the vehicle's loss of value with use and age. A new car loses 20% in year one and roughly 50% by year five. Usually the biggest cost-per-km item — bigger than fuel. Common accounting methods: straight-line, sum-of-the-years, MACRS (US). The IRS US$0.67/mile embeds about US$0.28 of depreciation; detailed actual-expense methods compute it separately.