How Do You Calculate Car Depreciation?

Car Depreciation is calculated this way: 

Formula: Price of Car - ( ARF / 2) / 10 years 

 

*ARF = Additional Registration Fees 

 

So for an example if your car cost $80,000 and your ARF is $20,000. This is how it is calculated. 

Car depreciation = $80,000 - ($20,000 / 2) /10 year

 

Your car depreciation is $7000 / year.

 

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