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| Originally Posted by Intern I think the easist way for Enterprise to handle their issues with regards to depreciating vehicles is simply to keep all vehicles for no longer than one year. From what I understand Hertz keeps their cars for shorter periods than we do. By keeping the vehicles for less than one year you eliminate your problems with depreciating the vehicle and regonizing any capital gains (it would eliminate capital gains). |
Some states have regulations on this. I believe here, you have to keep a vehicle over 1 year or pay a HEFTY penalty for the resale. I remember remarketing and car sales always telling me this. However, sometimes (like when the Muranos and Altimas were first hot), that the money made on the sale was huge compared to the unit cost + penalty - depreceation.