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Depreciation is the loss in a vehicle’s value over time and through use. It represents the difference between its initial value and the value it retains at a later date.
Reviewed 05.10.2026 · Version 2 · Scope: General
Age, mileage, condition, demand, and market changes may influence this loss. The purchase price and the price from a specific sale can measure realized depreciation; a future estimate remains uncertain.
Hypothetical example: buying for 20,000 euros and selling for 14,000 euros means a difference of 6,000 euros before considering other expenses. This is not a forecast for any model.
It helps compare the cost of owning vehicles with different purchase prices. In an ownership-cost calculation, the full purchase price and depreciation should not be added as if they were two separate costs.
It is not money paid for interest, fuel, or repairs. Nor does it mean that all vehicles lose the same percentage each year.
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