00600616

Component

http://onlinepubs.trb.org...trr/1990/1262/1262-002.pdf

https://scholar.google.co...Dunn&publication_year=1990

Motor vehicle depreciation can be a significant component of total vehicle operating costs. It is therefore important to consider depreciation in economic appraisals of road improvement projects. The results of a study into motor vehicle depreciation in New Zealand are presented in this paper. Depreciation equations that predict the rate of depreciation as a function of the vehicle age and kilometerage were developed from resale data. These equations were developed for passenger cars, light commercial vehicles, and medium and heavy commercial vehicles. The stability of depreciation over time was investigated by performing the analysis on data from 17 months earlier. It was found that depreciation was unstable with respect to time, leading to the recommendation that a simpler technique be adopted for calculating depreciation costs. The technique recommended was capital recovery, a straight-line depreciation technique that considers the effect of time on capital. The depreciation equations were used to investigate the allocation of depreciation between time and vehicle use. It was found that the majority of the depreciation costs are due to time, not vehicle use.

This paper appears in Transportation Research Record No. 1262, Planning, Management and Economic Analysis 1990. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved

01410801

p. 12-20

1990

Transportation Research Record

0309050146

Figures (3) ; References (21) ; Tables (4)

Costs; Depreciation; Economic analysis; Equations; Highways; Improvements; Motor vehicles; Time

New Zealand

New Zealand

Economics; Finance; Highways; Society; I10: Economics and Administration

TRIS, TRB, ATRI

Oct 31 1990 12:00AM

• APPROACH TO COMBINE RANKING AND OPTIMIZATION TECHNIQUES IN HIGHWAY PROJECT SELECTION
• CAN THE COMMUNITY INVOLVEMENT PROCESS BE AN ASSET TO PROJECT EXECUTION IN MAJOR ROADWAY DEVELOPMENTS? A CASE STUDY OF A DELAWARE EXPERIENCE
• CHANGING ENVIRONMENT FOR HIGHWAY CONSTRUCTION: THE UTAH EXPERIENCE WITH CONSTRUCTION COST OVERRUNS
• COMBINED ROAD PLAN START-UP PROCEDURES AND OPERATING EXPERIENCE
• COMPUTER TRANSPORTATION MODELS FOR LAND USE REGULATION AND MASTER PLANNING IN MONTGOMERY COUNTY, MARYLAND
• COST-EFFECTIVENESS FOR CIRCULATION-DISTRIBUTION SYSTEMS
• DUAL EQUILIBRIUM MODEL OF URBAN COMMERCIAL ACTIVITY AND TRAVEL
• EVALUATION OF RAMS-DO1 AS A TOOL FOR PROJECT PROGRAMMING
• EVALUATION OF TRUCK IMPACTS ON PAVEMENT MAINTENANCE COSTS
• MEASURING ECONOMIC DEVELOPMENT BENEFITS FOR HIGHWAY DECISION MAKING IN WISCONSIN
• QUICK APPROACH TO ESTIMATE LAW ENFORCEMENT COST ON URBAN ROADS
• RELATIONS BETWEEN TRANSPORTATION AND PRODUCTION
• REVIEW OF THE HDM-III USER COST MODEL FOR SUITABILITY TO CANADIAN HEAVY VEHICLES
• ROADWAY VEHICLE DELAY COSTS AT RAIL-HIGHWAY GRADE CROSSINGS
• SMALL COMPUTERS AND PROJECT MANAGEMENT IN TRANSPORTATION CONSULTING
• U.S. HIGHWAY CAPITAL PROGRAMS: ELEMENTS OF DYNAMICS AND INNOVATION
• UPDATE ANALYSIS OF HIGHWAY COST ALLOCATION
• USE OF PRECONSTRUCTION ENGINEERING MANAGEMENT SYSTEM TO DEVELOP, SCHEDULE, AND MONITOR THE NORTH CAROLINA HIGHWAY CAPITAL IMPROVEMENT PROGRAM
• UTILITIES STUDY FOR THE ALABAMA HIGHWAY DEPARTMENT