Calculation of car depreciation by mileage, mileage, example

Depreciation of a car, without being expressed in scientific terms, is an accounting of its depreciation expressed in monetary terms. Any car requires costs: for repairs, for the replacement of technical fluids, for the replacement of rubber, and, of course, the cost of refueling it with fuel.

When calculating the depreciation of a car, fuel costs are not taken into account.

Why do you need to calculate car depreciation?

• Firstly, it is necessary for entrepreneurs and legal entities to submit documentation to the tax authorities. Thus, the expenses of the company are described in detail so that the tax authorities do not have questions regarding the expenditure of funds.
• Secondly, depreciation is taken into account in insurance companies for a more accurate assessment of the real value of a car when its owner wants to conclude an insurance contract. Depreciation is also taken into account in banks or pawnshops when buying and selling used cars.
• Thirdly, a common situation is when a company employee uses his personal transport to perform his duties. In this case, the employer is obliged to take into account not only the cost of refueling, but also depreciation, that is, the wear and tear of the car. Typically, companies pay 1,5-3 rubles for each kilometer run.

Every owner of a private car should also take into account wear so that the cost of replacing filters or oil does not come as a surprise.

How is depreciation calculated?

Calculating the depreciation of a car is not as difficult as it might seem. For example, in many car magazines, we can see such information that every kilometer that we drive on such and such a car model costs us 3 rubles or 7, and this is in addition to the cost of refueling.

Where do these numbers come from?

If you do not have special accounting knowledge, then you just need to consistently account for all the expenses for your car during the year: consumables, brake fluid, oil, replacement parts. As a result, you will receive a certain amount, for example, 20 thousand. Divide this amount by the number of kilometers traveled per year and find out how much one kilometer costs you.

You can also go the other way:

• take into account all expenses for the passage of scheduled inspections and technical inspections;
• follow the instructions, after how many kilometers you will need to replace all filters, process fluids, brake pads, change the oil in the engine, automatic transmission, power steering, etc., take into account the cost of all these works;
• perform complex mathematical calculations - divide the resulting amount by the mileage that your car has traveled by that time, and you get approximate the cost of one kilometer.

It is worth noting that this method will not be very accurate, if only because every year your cash costs for a car will only increase. But such a calculation will tell you how much money you need to have so that the next breakdown does not hit the budget very hard.

To get more accurate data, you need to not only take into account your costs for certain spare parts and consumables, but also:

• the age of the vehicle;
• his total mileage;
• the conditions under which it is operated;
• manufacturer (it's no secret that German cars do not need as frequent repairs as Chinese ones);
• environmental conditions in the area where you live;
• climate humidity;
• type of region - metropolis, city, town, village.

In the accounting literature, you can find various coefficients that will help you more accurately calculate the depreciation of a vehicle. For example, all cars are divided into categories depending on age:

• up to five years;
• five to seven;
• seven to ten years old.

Accordingly, the older the vehicle, the more money you need to spend on it.

Formula for calculating vehicle depreciation

Vehicle wear is calculated as a percentage. For this you need to know:

• wear indicator;
• actual mileage;
• amount by age;
• actual service life;
• adjustment factors - climatic and environmental conditions in the area where the car is used;
• region type.

All these indicators and ratios can be found in the accounting literature. If you do not want to delve into all these regulations and decrees of the Ministry of Finance, then you can find an online calculator for calculating depreciation on the Internet, and simply insert the actual data into the indicated fields.

Here is an example:

• a domestic-made car that we bought for 400 two years ago;
• mileage for 2 years amounted to 40 thousand;
• operated in a city with a population of up to a million people.

We receive data:

• estimated wear - 18,4%;
• natural wear and tear - 400 thousand times 18,4% = 73600 rubles;
• residual value - 326400 rubles;
• market value, taking into account obsolescence (20%) - 261120 rubles.

We can also find out how much one kilometer of run costs us - we divide 73,6 thousand by 40 thousand and get 1,84 rubles. But this is without taking into account obsolescence. If we also take into account obsolescence, we get 3 rubles 47 kopecks.

It should be noted that obsolescence significantly affects the reduction in the cost of vehicles. However, it is rarely used, or the obsolescence coefficient is set at the level of one, that is, it does not affect the cost of the vehicle in any way.

Here you can argue with theorists for a long time and prove that some Audi A3 of 2008, compared to the new Lada Kalina of 2013, not only is not morally obsolete, but, on the contrary, has overtaken it by several decades.

Another important point is that all the above coefficients are averaged and do not take into account many other objective factors, the main of which is the skill of the driver. Agree that at large motor transport enterprises they practice a completely different approach than at a small company delivering buns around the city. However, thanks to such calculations, you will know approximately how much it will cost you to operate the car. Also, this data can be used when buying used cars.

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