What is the salvage value of a car for depreciation purposes?

The salvage value is the value of an asset at the end of its useful life. In the context of car depreciation, the salvage value is the amount of money that the car is expected to be worth at the end of the depreciation period. This value can be estimated using various methods, such as:

* Published sources: The salvage value can be found in published sources, such as the Kelley Blue Book or Edmunds.com.

* Expert opinion: A car dealer or mechanic can provide an expert opinion on the salvage value of a car.

* Historical data: The salvage value can be estimated based on historical data on the prices of used cars.

The salvage value is used in calculating the depreciation expense of a car. The depreciation expense is the difference between the purchase price of the car and its salvage value, divided by the number of years in the depreciation period.