well to explain in terms of economics even if a i bought a car in 2008 worth 800,000 and sell it in 2010 worth 10,00,000 im making 200,000 in profit but to an untrained eye
the actual thing is current official figures of inflation are 24% that means after two year the worth 800,000 of comodity should be 48% higher that is about 12,00,000 and im selling it at 10,00,000 hence it is 200,000 loss.
in simple words, if i had bought wheat worth 800,000 in 2008 now i can sell it in 2010 worth 12,00,000 but the car will loose value
depreciation is very small in terms of car the value of second hand vehicles is relevant to the current price of new vehicle and the depreciation is counted from there