Buying & Ownership

Depreciation

What does Depreciation mean?

The value a vehicle loses between purchase and resale. For an ownership budget, divide that loss by the distance ridden over the same period.

Depreciation is the difference between what you paid for a vehicle and what you later sell it for. AAA’s ownership-cost methodology treats depreciation as a separate cost from fuel, maintenance, financing, insurance and fees.

How do you calculate depreciation per mile?

Subtract resale value from purchase price, then divide by miles ridden during ownership. A hypothetical scooter bought for $800 and sold for $200 loses $600. Over 4,000 miles (6,437 km), that is $600 ÷ 4,000 = $0.15 per mile, or about $0.093 per kilometer.

If you ride only 2,000 miles (3,219 km) before the same sale, the loss is $0.30 per mile. These examples show why the distance you expect to ride matters to an ownership budget. Neither resale value nor lifetime mileage is guaranteed.

Is depreciation another monthly bill?

Depreciation describes lost value. You don’t pay a separate depreciation invoice, but it still affects what ownership costs you. When adding a budget, don’t count both the full purchase price and depreciation as separate expenses for the same scooter. Account for loan interest separately from repayment of the purchase amount.

Resale estimates should reflect the vehicle’s condition and local market. Compare a few plausible resale outcomes when planning. One optimistic price can understate your costs. Battery replacement and other repairs are separate expenses unless already included in your maintenance budget.

Definition and example calculations checked November 1, 2026. Our electric scooter cost per mile guide separates electricity from ownership costs; use the E-Bike vs Car Calculator if you’re also considering a pedal-assisted commute.

Where we explain it in depth