As an example, if I drive 1,000 miles in May, I would deduct $234.25 from Quicken as a vehicle depreciation expense. I'll keep doing that until I hit 100,000 miles; any mileage after that is "free" since the vehicle will be completely depreciated at that point.
Tuesday, May 6
How I Track the Expense for the Purchase of a Vehicle
At the end of April I purchased a 2011 Chevrolet Aveo from Hertz. I spent a total, including taxes and fees, of $9,370 on the car. The car has just short of 60,000 miles on the odometer, and a few years ago I decided my vehicles' useful life would always be 100,000 miles for purposes of this exercise. Therefore, each month I will post an expense in Quicken the the number of miles I have driven. The per mile factor I will use is $.23425 (a little more than 23 cents). All I did to come up with that was divide my purchase price by the 40,000 miles remaining for my vehicle's useful life.