Depreciates

To decrease in value over time, especially concerning an asset like property, currency, or equipment. This reduction in worth can result from factors like wear and tear, obsolescence, market conditions, or inflation. Depreciating assets become less valuable as they age or become outdated, impacting their resale price or economic usefulness. This process reflects a loss of economic value that businesses and individuals must account for.

Depreciates meaning with examples

• The old car depreciates rapidly as its mileage increases and newer models hit the market. Its initial value of $20,000 plummeted to $8,000 after just five years. Proper maintenance can slow the rate, but the effects are unavoidable as the car ages. Owners factor this into their financial planning, understanding their vehicle’s declining worth.
• With the introduction of a newer model, the value of the previous year's smartphone depreciates significantly. The second-hand market price plummets as consumers crave the latest features. This makes the older device less appealing to buyers, reflecting the quick pace of technological advancement and shorter product life cycles.
• A strong economy can make the value of savings depreciates, or less valuable, compared to investments that have been set. You may find it better to purchase commodities, such as gold, because this will help keep the value of your investments. While the rate of decline may be more gradual, it still means it's not a smart idea to be passive with your money.
• The real estate market often reacts to changing economic conditions and thus may depreciate. A shift in interest rates or a decline in local demand will cause the value of property to fall. A home's value is also affected by its location, the quality of surrounding infrastructure, and economic downturns.