# Vehicle depreciation

> Loss of vehicle value over time, a major component of total cost per km.

**URL:** https://quilometragem.com/glossary/vehicle-depreciation

**Summary:** 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).

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.