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Comment Depreciation is mostly a fixed cost (Score 1) 1137

Nearly everybody gets this wrong. Depreciation is primarily a fixed cost (due to time) rather than a variable cost (due to miles); consider how much difference you get on a 5 year old car driven the average of 12,000 miles per year versus, say, 6,000 miles per year. The difference in the value of the car at that point is negligible compared to the amount of value you lost due to the 5 years of time you had the car.

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