The Cost of Depreciation of a Car

Eight thousand dollars of depreciation can be a pretty heavy cost for someone who doesn't have a lot of money to bear. For every payment into your roth r a, you then have the exact same amount fly out the door in terms of depreciation. So now if we depreciate our 32 thousand dollar car by 15 %, that would be a cost of depreciation in the second year of ownership of almost five thousand dollars. In addition, owning a car can be a significant source of personal liability.