Depreciation
Etymology
From Latin depretiare, "to lower the price" (de-, "down," plus pretium, "price, value"). The literal idea is pushing a value downward. Accounting adopted it for the systematic write-down of an asset’s worth across its useful life.
noun · /di-pree-shee-AY-shun/
The gradual loss in value of an asset over time as it wears out, ages, or becomes outdated.
What it names
It is the hidden cost of owning things: the new car that is worth thousands less the moment you drive it off the lot is depreciating, whether or not you notice.
Example
After depreciation, the delivery van was worth a third of what the company paid three years earlier.
Related idea
Amortization is the same idea applied to intangible things and to paying down loans over time, rather than to physical wear.