from The American Heritage® Dictionary of the English Language, 4th Edition
- n. A decrease or loss in value, as because of age, wear, or market conditions.
- n. Accounting An allowance made for a loss in value of property.
- n. Reduction in the purchasing value of money.
- n. An instance of disparaging or belittlement.
from Wiktionary, Creative Commons Attribution/Share-Alike License
- n. The state of being depreciated.
- n. The decline in value of assets.
- n. The measurement of the decline in value of assets. Not to be confused with impairment, which is the measurement of the unplanned, extraordinary decline in value of assets.
from the GNU version of the Collaborative International Dictionary of English
- n. The act of lessening, or seeking to lessen, price, value, or reputation.
- n. The falling of value; reduction of worth.
- n. the state of being depreciated.
from The Century Dictionary and Cyclopedia
- n. The act of lessening or bringing down price or value.
- n. A fall in value; reduction of worth.
- n. A belittling or running down of value or merit; conscious undervaluation or underestimation of the merits of a person, action, or thing; unfavorable judgment or scant praise: as, he is much given to the depreciation of even his best friends.
from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.
- n. decrease in value of an asset due to obsolescence or use
- n. a decrease in price or value
- n. a communication that belittles somebody or something
In case you weren't aware, new cars take a big hit in depreciation in the first few years of ownership — a smart buyer lets someone else pay that "new car" tax.
Self-depreciation is just the other side of the coin.
Residual value matters because depreciation is the largest single cost of owning a car.
Currency depreciation is generally an ineffective remedy because differences in income, costs and quality tend to swamp all but the largest changes in currency exchange rates.
Since the net savings rate has to be below 100% (simply because depreciation is non-negative), we can see that as an accounting identity, the rate of return on capital has to be bigger than the rate of growth of GDP.
Alex Chudnovsky, Majestic 's founder, says sterling' s depreciation is probably helping sales, but he noted that his firm has to spend a lot of money on hardware, most of which it buys from overseas.
It's only worth about $3,000, so depreciation is barely a factor.
A large chunk of depreciation is tied to mileage, as is a large chunk of maintenance, repairs, and of course fuel.
But if you tend to keep your car a long time or are a high-mileage driver, the near-term depreciation shouldn't be much of a factor.
Of course, short-term depreciation will be much less of a concern if you tend to hold on to cars for more than five years or are a high-mileage driver.