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Returning Member
posted Oct 4, 2021 4:21:20 PM

Depreciation basis for Used Vehicle purchase with warranty and other add ons

I recently purchased a used vehicle with add ons - 3 year warranty, GAP insurance and lifetime oil change.  I'm trying to determine what the vehicle basis amount will be for depreciation.  Of course I am adding the license and other fees to the purchase price, but what about these add ons. Can I separate out these items in their own assets, or at lease the 3 year warranty since the life of the vehicle is 5 years.

Thank you

0 2 2066
2 Replies
Level 15
Oct 4, 2021 5:25:48 PM

Everything EXCEPT the GAP ins is totaled together and comprises the cost  basis for depreciation.   The GAP ins is insurance.  

Returning Member
Oct 7, 2021 3:07:05 PM

Thank you