A car is not an asset

adults college students teens young adults

Cars are not assets. This is a reality check on cars/trucks/etc. Cars are fantastic, don’t get me wrong. They changed our country and offered us a ton of freedom.  But they are simply tools for transportation or vehicles. That’s it. You may or may not need one depending on your needs and where you live. 

If you need an automobile, try and remember what it really is for. We grow up in a society where getting a car is a life milestone, it is a symbol of success or personal freedom for others. To some, it is their identity. People have a passion for cars. Many people make a successful living or hobby building, racing, and repairing them. Some of them are just cool to look at.

Unless it is a collectible that appreciates (monetary or emotional), it is not an asset. Cars are machines built for transportation. They decrease in value and rot away. I’m sure you’ve heard a brand-new car decreases in value the second you drive it off the lot. You can do your best to maintain them or pick one that lasts longer than another. At the end of the day, it is simply a machine built with materials. Those materials have a lifespan you have no control over.

Yes, your car may have some current value.  But you can only realize that value by selling the car.  And unless you no longer need a car, that wouldn't be helpful.  When you put your hard-earned money into an automobile.  Be honest with yourself about what you are buying.  What is it for in your case? Then go forward and do your research. And if you are with a salesperson, remind yourself, "why am I here and what do I need".

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