Depreciation is the loss of a machine's value over time as it ages, accumulates spindle hours and is superseded by newer models. Machine tools typically depreciate fastest in their first few years, then level off — a well-maintained, in-demand machine can hold value for a decade, while a niche or worn one falls faster. Both physical wear and market demand drive the curve.
Understanding depreciation is the heart of valuing used equipment: it tells you what a machine is worth now and what it will be worth when you sell. See spindle hours and what affects used machine value, and check any machine's value at The Machine Blue Book.
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