How I Track Tesla Depreciation as a Full-Time Uber Driver
One of the biggest pushbacks I get as an Uber driver is, “It’s not worth the wear and tear on your car.”
People always ask if I’m really accounting for depreciation, and the answer is: absolutely! In fact, depreciation is my single most significant expense, and I track it down to the penny.
Calculate Your Depreciation
Enter your car’s numbers. The widget will compute per‑mile and yearly schedules for multiple methods and show how much to set aside.
Results by Method
Understanding Depreciation
Depreciation is just the drop in value of your car from the day you buy it until the day you sell or scrap it. If you purchase a vehicle for $38,500 and later sell it for $8,500, that $30,000 difference is your depreciation.
According to GAAP, there are three main ways to calculate depreciation:
Straight Line – Divide your total depreciation evenly over the years you own the car.
Accelerated – Front-load the depreciation in the early years (common for tax purposes).
Units of Production – Base depreciation on actual usage, like miles driven.
I use Units of Production because I want to match my expenses to the miles I actually put on my Tesla.
My Tesla Numbers
I purchased my Tesla Model Y Long Range for $38,500 and expect it to be worth approximately $8,500 when I reach 200,000 miles. That’s $30,000 of depreciation over 200,000 miles, or $0.15 per mile.
It doesn’t matter if I reach that mileage in three years or eight years; the math stays the same.
Here’s how it looks compared to other methods:
Spreadsheet Explaining Uber Driver Car Depreciation Methods
My Actual Results
After 115,000 miles, Kelley Blue Book says my car is worth about $19,000. That’s $19,500 in real-world depreciation, about $0.17 per mile.
That’s slightly higher than my $0.15 estimate, but that’s precisely why I track it. Suppose Uber pays me $1,000 in a week and I drive enough miles to incur $150 in depreciation. In that case, I transfer that $150 into a separate account. That way, when it’s time for a new car, I have the cash ready.
Why It Matters
Most drivers spend every dollar they earn without setting aside money for depreciation. When their car finally gives out, they’re stuck scrambling for funds.
By tracking my depreciation and saving it, I don’t worry about “wear and tear.” I’ve already paid for it.
You can apply this same method to maintenance, fuel, or any other recurring cost, just calculate the per-mile or per-week amount and set it aside.
My Takeaway for 2025
For me, this isn’t about taxes, it’s about running my Uber business like a real business. Depreciation is real money, and I treat it like an expense I owe to myself.
Whether you use the straight-line, accelerated, or units-of-production method, account for your car’s depreciation. Future you will thank present you when it’s time to buy your next ride.
