No one pays for depreciation. Depreciation is simply an accounting tool to track value and to take deductions. The car you paid $50,000 is worth $50,000 when you bought it. Using a 5-year straight line appreciation, after 1-year it is worth $40,000 on your books, and the IRS allows you to deduct that $10,000 as an expense. Your company is not paying $10,000 to anyone, just making a book entry taking off $10,000 from the value of the car.
Always Right,
I know that we don't write a check for depreciation. We do put it on our books and have to come up with that much income, or else we are loosing money.
Example, last year we made $10,000 profit, and we had $50,000 cash saved up and decided we needed a new truck. This year, we made the same money, but have to show $0 profit since we had to depreciate $10,000 on the truck.
I'm guessing here, but I seem to remember that we "pay" somewhere near $1,000,000 in depreciation each year. That is with a total budget of around $7,000,000.