December 17, 2013
The automobile is a wealth depleting asset. Why? Options?
The automobile is a wealth depleting asset. Why? Options?
Because a $30,000 vehicle will have lost between $10,000 and $15,000 after just 2 years! That doesn’t even include insurance on the vehicle, interest on the loan, sales tax, or license fees. Instead, you should buy a 3-4 year old vehicle.
Well said, Katherine. You hit on all of the major points. Here is one final thought.
Detach your self-image from your automobile. It is nothing more than a big hunk of metal. You are not anymore successful, prosperous or better as a human being simply because you own a new and/or expensive vehicle. What you are, is poorer than the moment before you bought it. Vehicles deplete your wealth immediately and continue to do it gradually over time based on depreciation and the costs of ownership. Food for thought.