# Depreciation



## Uber-licious (May 22, 2015)

If I see this word in one more thread I'm going to scream . No one cares


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## Fauxknight (Aug 12, 2014)

It's vital to a long term driver to determine if they will truly come out ahead or are just losing money.

Just because you don't care doesn't mean there aren't a lot of us that do.

If cars didn't depreciate then the base price tag of the car would mean a lot less. We might as well all buy Teslas to Uber with, they have low operating costs and it doesn't matter if we quickly put 200k miles on it, we'll just sell it back for the 80k we paid for it brand new.


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## IckyDoody (Sep 18, 2015)

Vehicle replacement cost.... better?


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## Fauxknight (Aug 12, 2014)

If cars don't depreciate then I'm about to jump on Craigslist and buy some $500 cars so I can take them to the dealer and sell them back for $20k, cause you know, no depreciation.


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## rtaatl (Jul 3, 2014)

I believe what people really mean when they say depreciation is less about monetary value and more around the deterioration of the vehicle. It's important to maximize the asset and obtain the most profit from it while putting on the least amount of wear and tear. Every service interval you vehicle degrades...might not seem like anything at 30k or 50k, but get over 100k to 150k and there's much more to be concerned about. That number comes up sooner than you think if you're doing this business right so that's why it's important to put a cost valuation per mile to maximize your return. Unfortunately it's almost impossible to have any type of control over that since Uber dictates everything. You're not your own boss or business.


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## Fuzzyelvis (Dec 7, 2014)

Uber-licious said:


> If I see this word in one more thread I'm going to scream . No one cares


But you started a thread with that word as the title?

Oh, and if no one cares, why is it a topic so often?


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## rtaatl (Jul 3, 2014)

Depreciation can be like physical health. When you're young you feel like you're going to live forever and can do just about anything without much repercussion. Then you get older and feel like time is not on your side like it used to be and have to work harder to maintain yourself.
The same goes for vehicles...at first they're just oil changes. Yet after continued service intervals the techs start coming back with needs and repairs that need to be addressed. The car feels different after 120K miles or so. The newness has definitely worn off...and this business makes things wear out real quick.


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## ClevelandUberRider (Nov 28, 2015)

rtaatl said:


> Depreciation can be like physical health. When you're young you feel like you're going to live forever and can do just about anything without much repercussion. Then you get older and feel like time is not on your side like it used to be and have to work harder to maintain yourself.
> The same goes for vehicles...at first they're just oil changes. Yet after continued service intervals the techs start coming back with needs and repairs that need to be addressed. The car feels different after 120K miles or so. The newness has definitely worn off...and this business makes things wear out real quick.


Well said.


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## melusine3 (Jun 20, 2016)

rtaatl said:


> Depreciation can be like physical health. When you're young you feel like you're going to live forever and can do just about anything without much repercussion. Then you get older and feel like time is not on your side like it used to be and have to work harder to maintain yourself.
> The same goes for vehicles...at first they're just oil changes. Yet after continued service intervals the techs start coming back with needs and repairs that need to be addressed. The car feels different after 120K miles or so. The newness has definitely worn off...and this business makes things wear out real quick.


Not to mention the latest I've heard is that extended car warranties will decline any rideshare car claims.


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## I_Like_Spam (May 10, 2015)

Depreciation is critical in an enterprise where you are selling rides in a conveyance that has a limited life span.

When I was with Yellow Cab, all of the "new" taxis were retired police cruisers bought at auction. They were painted yellow, meters and radios installed, signed mounted, and they were ready to drive as new cabs with 150,000 miles already on the odometer.

YC made mistakes in their time, but this overall strategy was solid. Cars that aren't worth that much, equipped with vinyl seats, sturdy suspensions, ready for the general public for several years of service. 

A well built car might be cool for a life of 300,000, the first 100,000 are the most expensive, no point in using those miles if you don't have to. You don't get paid any more for a ride in a new car.


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## UberDez (Mar 28, 2017)

How could someone not care about depreciation ?
If you're doing this and not considering depreciation ,you're a moron


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## melusine3 (Jun 20, 2016)

UberDezNutz said:


> How could someone not care about depreciation ?
> If you're doing this and not considering depreciation ,you're a moron


There are those (I believe are actually Uber shills) who say wear and tear/depreciation don't count because it's going to happen anyway. I now drive my car 4 times the amount I did for personal use, so my car is depreciating 4 times faster. It does make a difference.


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