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> Depreciation is just about the car's value. Repairs aren't depreciation. The cost to maintain and repair affects a car's value, though, at least for commodit
by danans 3y ago
> Depreciation is just about the car's value. Repairs aren't depreciation.
The cost to maintain and repair affects a car's value, though, at least for commodity cars (classic and rare cars are of course a different scenario). Mileage is a proxy for the likely extent of repair and maintenance a car needs.
- AnthonyMouse 3y agoWhich is why the bluebook value of the car with more miles on it was $1500 lower. It's a $4000 car. It can't lose more than $4000 in value.
- Ekaros 3y agoBut those kilometres on it can cost more than the 4000. So value drops by 1500, but you could have spend the original value and extra 4000 to get there.
- AnthonyMouse 3y agoIf the car needs $9000 in repairs but it's a $4000 car, you haven't lost $9000 because you don't do the repairs. You've lost the $4000 value of the car, less whatever you can get for it as scrap. If the car needs $400 in repairs, you might find it worthwhile to do the repairs, but that's not depreciation.