Motorcycle Depreciation Calculator UK
Here's a simple method to estimate the depreciation of a motorcycle over a period of 5 years:
- First Year: Depreciation is typically around 20%.
- Second Year: Additional depreciation of about 10%.
- Third Year: Additional depreciation of about 10%.
- Fourth Year: Additional depreciation of about 7%.
- Fifth Year: Additional depreciation of about 5%.
We will create a table that shows the estimated value of a motorcycle over a 5-year period given its initial value.
Let's use an example initial value of £10,000 for the motorcycle.
| Year | Depreciation Rate | Depreciated Value (£) |
|---|---|---|
| 0 | 0% | 10,000 |
| 1 | 20% | 8,000 |
| 2 | 10% | 7,200 |
| 3 | 10% | 6,480 |
| 4 | 7% | 6,026 |
| 5 | 5% | 5,725 |
Depreciation Calculation
- Year 0: No depreciation, value remains £10,000.
- Year 1: £10,000 - (20% of £10,000) = £10,000 - £2,000 = £8,000.
- Year 2: £8,000 - (10% of £8,000) = £8,000 - £800 = £7,200.
- Year 3: £7,200 - (10% of £7,200) = £7,200 - £720 = £6,480.
- Year 4: £6,480 - (7% of £6,480) = £6,480 - £454 = £6,026.
- Year 5: £6,026 - (5% of £6,026) = £6,026 - £301 = £5,725.