Cars · RATIOXA GLOSSARY
Depreciation
Purchase price less later net sale proceeds. For ownership it is often a larger cost block than maintenance alone.
Simple definition
Purchase price less later net sale proceeds. For ownership it is often a larger cost block than maintenance alone.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
If resale value falls by €3,000, economic vehicle cost rises by the same amount.