What is Car Depreciation? Car depreciation refers to the decline in a vehicle’s value over time due to use, age, and other factors. It represents the difference between the original purchase price and the amount received when the car is sold. For instance, if a car is purchased for $30,000 and its value drops to $15,000 after five years, the car has depreciated by 50%. While commonly associated with vehicles, depreciation also applies to other physical assets like machinery or buildings. It indicates that an asset has been... read full review »