Technically what folks are describing is not depreciation. Depreciation is an accounting concept which attempts to spread the cost of an asset less residual value over its useful life. For example a $33,000 vehicle with an expected life of 10 years and a residual value of $3,000, would depreciate $3,000 each year using a straight line depreciation method.What is being discussed on this post is cash value. Cash value is different than depreciated value. Cash value is what a person can get if he/she sold the asset. There are many different cash values including trade value, retail sales value, private sale value. Cash value depends on the vehicle, its condition, and the desirability of the vehicle used vehicle market. In any case, a person should not view a vehicle as a depreciating asset. Rather, a vehicle is an expense, transportation expense. We all have transportation expenses. Any person's transportation expense includes the cost of a vehicle, interest if financed, repairs, insurance, registration, gasoline. Or, if a person does not have a vehicle, things like bus fair, car rental, etc. , Visit Edmunds.com Car Forums to discuss car buying, selling, repairs, maintenance and all things automotive! Search discussions by make, model or topic., Depreciation Infographic: How Fast Does My New Car Lose Value?Edmunds Car Depreciation Infographic shows how fast a new car loses value over a five-year period..