Correct.
The Standard Mileage rate has a "Depreciation Equivalent" built into the rate, and depreciation cannot be taken on an asset that is not owed by the Business / Business owner.
She would not benefit from the salvage since she has no basis in the asset (since she was never legally the owner).
She CAN claim part of the insurance she paid on the vehicle as well as gas and repairs. These actual expenses must be allocated by percentage of business use. If she spent $400 in gas and drove 10,000 during the year, 5,000 of which were business miles, she would claim 200 in fuel expense and 50% of the other expenses she paid relating to the vehicle.
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