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Calculating variable depreciation values

  1. #1
    Registered User
    Join Date
    01-29-2008
    Posts
    1

    Calculating variable depreciation values

    I am trying to make a calculator which will automatically calculate the depreciation values of vehicles based on age/mileage/purchase price.

    I have been given the following figures to work with:

    10% depreciation when registered
    20% after 6 months
    35% after 12 months
    50% after 24 months
    65% after 36 months

    This is based on a fixed annual mileage of 6,000 miles per year. For every extra 1,000 miles depreciation is increased by 2% on purchase price.


    So what I want to have is a kind of calculator where the user will input the purchase price, age (in months) and mileage, and it will calculate the depreciation value based on the conditions as above, e.g.
    Value = 10,000
    Mileage = 5,000
    Age = 9 months
    Depreciation value (output) = 7250

    Please could someone give me a few tips on the best way to do this.

    Thanks

  2. #2
    Forum Contributor
    Join Date
    01-13-2006
    Location
    Texas
    Posts
    161
    The general idea is not too hard, but please explain your example calculation. It is not obvious how you arrived at $7,250 based on the situation you presented. Are the mileage and age inputs calculated ratably - i.e., is 9 months calculated at the average of 6 and 12 months (20% + 35%/2)?

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