AV Equipment Depreciation

Shuvc · #1 1st September 2008, 06:04 PM

Is there any thumbrule to calculate depreciation of AV equipment?

For eg, used cars have a more or less applicable rate of depreciation over the years. Of course, certain makes and models do attract a premium.

Is there any such general guideline to follow, when hunting for used equipment?

venkatcr · #2 1st September 2008, 08:51 PM

We generally depreciate a computer in 3 years to zero, so the rate per year is 33.33%.

In audio and video equipment it is much more difficult. As Sunil had written from London. the prices of AVRs sometime falls by 40% in one year. But, this is because the dealers want to sell out old stock and bring in new ones. If you buying a slightly old piece from a dealer you can bargain hard - anywhere from 20 to 50%. Remember, an old piece is when the manufacturer has either discontinued the product, or, has brought out a new version or, a slightly upgraded model has been introduced.

When you are buying from an individual, it is different matter. There is lot of emotion involved and the seller may also be expecting a good price to fund his next purchase.

Cheers

Shuvc · #3 1st September 2008, 09:45 PM

Hmm. I guess then, for transactions between individuals, there's no formula really. Not even a rough one !

tharun · #4 1st September 2008, 09:55 PM

maybe 40 to 50% off if the product is around 3 to 4 years

regards

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