Since the vehicle is already on the balance sheet as a fixed asset, should i depreciate its value? If so, according to what timeline? 60 months?
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Yes it is a fixed asset, and the payment you made should post to that same account
yes you calculate and post annual depreciation to a fixed asset sub account for the car called accumulated depreciation-car
download IRS pub 946, depreciation it has the tables and % per year for depreciation.
journal entry to make the posting
debit depreciation expensecredit accumulated depreciation-car
I prefer to set up the FA account sturcture this way (all accounts are FA accounts
Car (do not post to this account, it is a summing account)>> cost>> accumulated depreciation