For those of you that include your vehicle(s) in your net worth, how do you determine its value?

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LiterallyIronic
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For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by LiterallyIronic » Fri Jan 31, 2020 10:04 am

Do you check Kelly Blue Book for an estimate? Do you have a depreciation formula? Do you check what similar cars are going for?

JGoneRiding
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by JGoneRiding » Fri Jan 31, 2020 10:07 am

I check nada as that is what insurance companies use and it is better than kbb.

I just list it for what I think I could most likely sell it for.

For my houses (there are 4) I use Zillow and discount by about 10% or more. Occasionally less if for no explainable reason Zillow has gone down.

My net worth tracking is strictly for my benefit so I do whatever I feel like, i just set up a system and keep it the same.

Soon2BXProgrammer
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Soon2BXProgrammer » Fri Jan 31, 2020 10:15 am

LiterallyIronic wrote:
Fri Jan 31, 2020 10:04 am
Do you check Kelly Blue Book for an estimate? Do you have a depreciation formula? Do you check what similar cars are going for?
I do something that might be considered strange. I pick a percentage per month (somewhere about 2%ish maybe as low as 1.5% or as high as 2.5% ) and I just depreciate the car. Then when I have large car expenses (tires are a great example, do they fail all at once or do they have a usage time period?) , I actually treat that as a cash expense but an upwards adjustment to the car value. Once every year or so i check KBB/nada and if its in the right ballpark, I leave it alone, if not, I tweak the % including in the previous months.

Another good example is for cars that need a timing belt at 100k, the market value of a car with it done is drastically different then those that aren't. Therefore that $1k expense as an example, sort of makes sense to change the value of the car.

NerdicSkier
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by NerdicSkier » Fri Jan 31, 2020 10:35 am

I also depreciate by a fixed amount each month. This is our first month of full depreciation for our 2009 Prius, yay! Driving a fully-depreciated vehicle is one of the finer things in life.

g2morrow
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by g2morrow » Fri Jan 31, 2020 10:40 am

I don't' count depreciating assets. Thats just me though.

Chip
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Chip » Fri Jan 31, 2020 10:54 am

I don't count it in net worth, but consider the annual depreciation an expense. I use KBB. Close enough for me.

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dm200
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by dm200 » Fri Jan 31, 2020 11:00 am

For those that want to "count" vehicle value, I would use the clean retail value from NADA. www.nadaguides.com

For tracking and consistency, this can make sense.

For example, if you pay cash for a $50,000 car - from one month to the next - your "cash" goes down $50,000 - and vehicle worth will go up almost as much. Then, will decline slowly each month over time.
Last edited by dm200 on Fri Jan 31, 2020 11:03 am, edited 1 time in total.

HoosierJim
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by HoosierJim » Fri Jan 31, 2020 11:03 am

Just as some people on this site, we drive our cars until they don't move anymore so the asset value depends on how much gas is in the tank.

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sk2101
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by sk2101 » Fri Jan 31, 2020 11:07 am

I don't count them, but what is typically done for HNW individuals who track all assets in a balance sheet is to depreciate them straight line over 5 years - that't the IRS guideline for ADS (longer depreciation).

ETA: if the value of cars is a meaningful proportion of one's net worth, I suggest reevaluating how much car they are buying. Aim for less than 1%.
Last edited by sk2101 on Fri Jan 31, 2020 11:12 am, edited 1 time in total.

neilpilot
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by neilpilot » Fri Jan 31, 2020 11:08 am

In the grand scheme of things, does it really matter how you determine vehicle value unless you happen to be going thru a separation of assets (i.e. divorce)? While I'm sure some BHs are car poor, in my case our cars represent <1% of our total assets and their value determination wouldn't move the needle on our overall asset allocation.

While I know there are some that love to continuously count their assets, how would the impact of your vehicle value impact any decision making? Unless, maybe, your vehicles include a extensive car collection, a large yacht and/or expensive aircraft.

quantAndHold
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by quantAndHold » Fri Jan 31, 2020 11:11 am

The value of my vehicles is noise. Keeping track down to that level of detail isn’t useful.
Yes, I’m really that pedantic.

bovineplane
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by bovineplane » Fri Jan 31, 2020 11:14 am

We only include two cars which have a stable collectible sort of value. Neither are rare but plenty of auction data on them. They are not daily drivers. Both have a stable to slightly increased value in the last 2-3 years. We do not include our daily driver cars (2) as we need them for transportation/work/kids and wouldn't likely sell them unless the SHTF.

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LiterallyIronic
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by LiterallyIronic » Fri Jan 31, 2020 11:31 am

sk2101 wrote:
Fri Jan 31, 2020 11:07 am
I don't count them, but what is typically done for HNW individuals who track all assets in a balance sheet is to depreciate them straight line over 5 years - that't the IRS guideline for ADS (longer depreciation).

ETA: if the value of cars is a meaningful proportion of one's net worth, I suggest reevaluating how much car they are buying. Aim for less than 1%.
Heh, my car is approximately 0.3% of my net worth ($700 out of $240k), but my wife wants to have a nicer car - something in the $5k-6k range. I've never included cars in my net worth before, because a few hundred bucks is just noise. But seeing my net worth chart drop by several thousand bucks is an idea that makes me sad. So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart.
neilpilot wrote:
Fri Jan 31, 2020 11:08 am
how would the impact of your vehicle value impact any decision making? Unless, maybe, your vehicles include a extensive car collection, a large yacht and/or expensive aircraft.
Not decision-making, just my mood. Numbers going up makes me happy; numbers going down makes me sad. So maybe it's just paper accounting to stretch out the effect the car purchase would have on net worth over time rather than all at once so that way it can be masked by the inflows of paychecks and whatever the stock/housing markets do.
Last edited by LiterallyIronic on Fri Jan 31, 2020 11:35 am, edited 1 time in total.

smitcat
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by smitcat » Fri Jan 31, 2020 11:34 am

LiterallyIronic wrote:
Fri Jan 31, 2020 10:04 am
Do you check Kelly Blue Book for an estimate? Do you have a depreciation formula? Do you check what similar cars are going for?
KBB for most cars/trucks.

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Jack FFR1846 » Fri Jan 31, 2020 11:38 am

I do include my cars (and my guitars and tools) in my assets toward net worth. For 2 reasons. One is that at some point, I might sell or trade a car and then when I die, it will add to the value for my wife, who won't need the extra cars and will most likely drive them to Car Max to unload. I use craigslist as a guide as the prices there, sorted for lower priced cars is more closely related to wholesale that I'd expect to get. I don't update these values very often. Maybe once a year.
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smitcat
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by smitcat » Fri Jan 31, 2020 11:38 am

LiterallyIronic wrote:
Fri Jan 31, 2020 11:31 am
sk2101 wrote:
Fri Jan 31, 2020 11:07 am
I don't count them, but what is typically done for HNW individuals who track all assets in a balance sheet is to depreciate them straight line over 5 years - that't the IRS guideline for ADS (longer depreciation).

ETA: if the value of cars is a meaningful proportion of one's net worth, I suggest reevaluating how much car they are buying. Aim for less than 1%.
Heh, my car is approximately 0.3% of my net worth ($700 out of $240k), but my wife wants to have a nicer car - something in the $5k-6k range. I've never included cars in my net worth before, because a few hundred bucks is just noise. But seeing my net worth chart drop by several thousand bucks is an idea that makes me sad. So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart.
neilpilot wrote:
Fri Jan 31, 2020 11:08 am
how would the impact of your vehicle value impact any decision making? Unless, maybe, your vehicles include a extensive car collection, a large yacht and/or expensive aircraft.
Not decision-making, just my mood. Numbers going up makes me happy; numbers going down makes me sad. So maybe it's just paper accounting to stretch out the effect the car purchase would have on net worth over time rather than all at once so that way it can be masked by the inflows of paychecks and whatever the stock/housing markets do.
"So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart."
It may go up.
"how would the impact of your vehicle value impact any decision making?"
Insurance , loan apps.

quantAndHold
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by quantAndHold » Fri Jan 31, 2020 11:40 am

LiterallyIronic wrote:
Fri Jan 31, 2020 11:31 am
sk2101 wrote:
Fri Jan 31, 2020 11:07 am
I don't count them, but what is typically done for HNW individuals who track all assets in a balance sheet is to depreciate them straight line over 5 years - that't the IRS guideline for ADS (longer depreciation).

ETA: if the value of cars is a meaningful proportion of one's net worth, I suggest reevaluating how much car they are buying. Aim for less than 1%.
Heh, my car is approximately 0.3% of my net worth ($700 out of $240k), but my wife wants to have a nicer car - something in the $5k-6k range. I've never included cars in my net worth before, because a few hundred bucks is just noise. But seeing my net worth chart drop by several thousand bucks is an idea that makes me sad. So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart.
Ah. Makes more sense. Your net worth is low enough that a car is not just a blip to you.

But...nope, still wouldn’t count it. By the time you go to sell it, it will be worth a fraction of what it’s worth now. There are things we need to buy that are basically consumable. A reliable car for the wife is one of those. A $5k car is barely in the “reliable transportation” category. Just buy it and move on.

It’s not that useful to count net worth down to that level of detail or that often. Just save, invest, and check it again in five years.
Yes, I’m really that pedantic.

rkhusky
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by rkhusky » Fri Jan 31, 2020 11:43 am

I use KBB and Edmunds yearly to get a rough estimate.

neilpilot
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by neilpilot » Fri Jan 31, 2020 12:24 pm

smitcat wrote:
Fri Jan 31, 2020 11:38 am

neilpilot wrote:
Fri Jan 31, 2020 11:08 am
how would the impact of your vehicle value impact any decision making? Unless, maybe, your vehicles include a extensive car collection, a large yacht and/or expensive aircraft.

"So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart."
It may go up.
"how would the impact of your vehicle value impact any decision making?"
Insurance , loan apps.
OK, maybe I should have said how would the impact of your vehicle value as part of your net worth impact any decision making? Of course, that's obviously what I was saying.

adamthesmythe
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by adamthesmythe » Fri Jan 31, 2020 12:27 pm

If the purpose of tracking net worth is to get a sense of "how you're doing"- well, it's only a crude measure. Because what will matter is what you can realize as income from your assets at retirement. And that, for example, is different for taxable vs. non-taxable, etc.

So the only point in my mind of tracking net worth is as some sort of score card, and not a very meaningful one.

And as far as potential income is concerned- the assets that matter are the ones you can sell to get income. For most cars that is some small fraction of purchase price, and that doesn't matter anyway because you probably still need to drive.

And not much point in tracking house value, unless you plan to sell it and live in your car.

And even more...if car value is more than a blip, you probably have another problem.

So no, I don't consider a car an asset worth tracking.

khangaroo
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by khangaroo » Fri Jan 31, 2020 12:31 pm

I have all my accounts tied to Mint and there is an option in there where you can input your cars so I just go off of that value. I mean if my cars were more expensive then I might do an extra step but they've been around $20k. I track my net worth bi-weekly and this is the easiest way for me, updating the spreadsheet takes 5 minutes at the most - all depends on how fast Mint can update all accounts :D

123
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by 123 » Fri Jan 31, 2020 12:32 pm

I don't think it's particularly useful to include vehicles in your net worth since they generally depreciate and few appreciate (and then very little). If you include a vehicle in your net worth be sure to make an adjustment for any remaining loan balance on it.
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smitcat
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by smitcat » Fri Jan 31, 2020 12:34 pm

neilpilot wrote:
Fri Jan 31, 2020 12:24 pm
smitcat wrote:
Fri Jan 31, 2020 11:38 am

neilpilot wrote:
Fri Jan 31, 2020 11:08 am
how would the impact of your vehicle value impact any decision making? Unless, maybe, your vehicles include a extensive car collection, a large yacht and/or expensive aircraft.

"So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart."
It may go up.
"how would the impact of your vehicle value impact any decision making?"
Insurance , loan apps.
OK, maybe I should have said how would the impact of your vehicle value as part of your net worth impact any decision making? Of course, that's obviously what I was saying.
These items...
Insurances , loan apps, and decisions about what to keep, replace, and/or sell outright.

khangaroo
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by khangaroo » Fri Jan 31, 2020 12:37 pm

Do people not read the titles of these posts? "For those of you that include your vehicle(s) in your net worth"

What's the point in chiming in and saying that you don't track your vehicles in your net worth because blah blah blah. The question wasn't intended for you so why give unsolicited opinions?

But I guess it is the internet so whatever.

neilpilot
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by neilpilot » Fri Jan 31, 2020 12:38 pm

smitcat wrote:
Fri Jan 31, 2020 12:34 pm
neilpilot wrote:
Fri Jan 31, 2020 12:24 pm
smitcat wrote:
Fri Jan 31, 2020 11:38 am

neilpilot wrote:
Fri Jan 31, 2020 11:08 am
how would the impact of your vehicle value impact any decision making? Unless, maybe, your vehicles include a extensive car collection, a large yacht and/or expensive aircraft.

"So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart."
It may go up.
"how would the impact of your vehicle value impact any decision making?"
Insurance , loan apps.
OK, maybe I should have said how would the impact of your vehicle value as part of your net worth impact any decision making? Of course, that's obviously what I was saying.
These items...
Insurances , loan apps, and decisions about what to keep, replace, and/or sell outright.
Yes, these all considerations but off topic. They are unrelated to the the impact the OP's vehicles have on his Net Worth.

smitcat
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by smitcat » Fri Jan 31, 2020 12:44 pm

neilpilot wrote:
Fri Jan 31, 2020 12:38 pm
smitcat wrote:
Fri Jan 31, 2020 12:34 pm
neilpilot wrote:
Fri Jan 31, 2020 12:24 pm
smitcat wrote:
Fri Jan 31, 2020 11:38 am

neilpilot wrote:
Fri Jan 31, 2020 11:08 am
how would the impact of your vehicle value impact any decision making? Unless, maybe, your vehicles include a extensive car collection, a large yacht and/or expensive aircraft.

"So I'd rather include the value of the car in the chart and depreciate it over time so there isn't a big divot in my net worth growth chart."
It may go up.
"how would the impact of your vehicle value impact any decision making?"
Insurance , loan apps.
OK, maybe I should have said how would the impact of your vehicle value as part of your net worth impact any decision making? Of course, that's obviously what I was saying.
These items...
Insurances , loan apps, and decisions about what to keep, replace, and/or sell outright.
Yes, these all considerations but off topic. They are unrelated to the the impact the OP's vehicles have on his Net Worth.
"Yes, these all considerations but off topic. They are unrelated to the the impact the OP's vehicles have on his Net Worth."
We already know about the OP and why he is tracking this with his posts but others may be following this and get some good value out of the information similar to most posts on the Bogleheads.
Reasons why to track include:
- taxes when the vehicle is in a small business
- net worth value for when applying for loans
- insurance to value what coverage is appropriate
- net value to consider when trading, selling or changes to the mix

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rocket354
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by rocket354 » Fri Jan 31, 2020 12:45 pm

rkhusky wrote:
Fri Jan 31, 2020 11:43 am
I use KBB and Edmunds yearly to get a rough estimate.
Edmunds here, as well. I've always been skeptical of KBB values. In my admittedly limited experience, Edmunds numbers seem to translate into the real world a bit better.

These discussions always seem to bring out some level of debate on what is "net worth" anyways. My car is not part of my investable assets, which a lot of people seem to want to be the definition of net worth. However, my car is definitely a part of my net worth by its actual definition, no matter which direction, up or down, it will go in tomorrow, and no matter how big or small a piece it is. So it counts.

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by prairieman » Fri Jan 31, 2020 12:49 pm

I shrug my shoulders and say to myself, “Hmmm, I could probably get this much for my house, car, and other stuff.”
Since it does not truly matter and I’m not dead or selling, I cannot be proven wrong. It’s probably close enough and I don’t think it’s worth spending any more time than that on it.

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Nate79
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Nate79 » Fri Jan 31, 2020 1:06 pm

KBB every 6 months or when bored whichever comes first.

Halicar
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Halicar » Fri Jan 31, 2020 1:15 pm

This Excel formula:

=ROUND(25755.8-((DAYS(TODAY(),43031))*7.05),-2)

I purchased it for $25,755.80 in October 2017. I intend to drive it for ten years, and I've spread the depreciation evenly over that time. Right now the value is much higher than the KBB price but that doesn't matter to me since I don't intend to sell it. I'm mostly interested that it costs me $7.05/day.

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snackdog
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by snackdog » Fri Jan 31, 2020 1:24 pm

We have fairly decent cars but they are worth less than one third of 1% of net worth. Even if we replaced them both with newer cars we would struggle to hit 1%. Definitely not worth any effort tracking them, nor anything else less than 5% of net worth I reckon.

mervinj7
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by mervinj7 » Fri Jan 31, 2020 1:38 pm

Halicar wrote:
Fri Jan 31, 2020 1:15 pm
This Excel formula:

=ROUND(25755.8-((DAYS(TODAY(),43031))*7.05),-2)

I purchased it for $25,755.80 in October 2017. I intend to drive it for ten years, and I've spread the depreciation evenly over that time. Right now the value is much higher than the KBB price but that doesn't matter to me since I don't intend to sell it. I'm mostly interested that it costs me $7.05/day.
That's not a bad idea. Another way to do calculate it would be to take 20% depreciation immediately and then do a straight line depreciation for 10 years.

MathWizard
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by MathWizard » Fri Jan 31, 2020 1:53 pm

I don't, I just keep track of my portfolio value instead of net worth.

I build up in a savings account/CDs for a new(er) car every 5 years (one for my wife, then one for me, since we keep cars about 10 yrs.)
I guess I could do a net worth, subtracting 1/60th the price of a car each month, and adding in the amount I am saving (which would be a wash).

Are you estimating your home equity as well, assuming you own a home?

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Jack FFR1846 » Fri Jan 31, 2020 1:59 pm

Halicar wrote:
Fri Jan 31, 2020 1:15 pm
This Excel formula:

=ROUND(25755.8-((DAYS(TODAY(),43031))*7.05),-2)

I purchased it for $25,755.80 in October 2017. I intend to drive it for ten years, and I've spread the depreciation evenly over that time. Right now the value is much higher than the KBB price but that doesn't matter to me since I don't intend to sell it. I'm mostly interested that it costs me $7.05/day.
I'd like to use this formula but don't know how.

2009 car.
Acquired 2018
Cost Zero
Insurance totaled, I bought back, paid me $4800 check. So I change my cost to -$4800.....
Current value probably a good $2k.
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Watty
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Watty » Fri Jan 31, 2020 2:09 pm

I just use the Edmunds private party sale price since it is easy to use.

Realistically it likely does not make a lot of difference which one you use as long as you are consistent.

H-Town
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by H-Town » Fri Jan 31, 2020 2:10 pm

LiterallyIronic wrote:
Fri Jan 31, 2020 10:04 am
Do you check Kelly Blue Book for an estimate? Do you have a depreciation formula? Do you check what similar cars are going for?
You should focus on booking a liabilities (a fixed and determined amount) rather than focusing on an average value of a similar model of your car (but not your car).

A more accurate value of your car, if somehow you wanted to know, is from an actual offer for a potential buyer. Maybe CarMax? Other than that, be aware that you’re working with an estimate.

acegolfer
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by acegolfer » Fri Jan 31, 2020 2:12 pm

khangaroo wrote:
Fri Jan 31, 2020 12:37 pm
Do people not read the titles of these posts? "For those of you that include your vehicle(s) in your net worth"

What's the point in chiming in and saying that you don't track your vehicles in your net worth because blah blah blah. The question wasn't intended for you so why give unsolicited opinions?

But I guess it is the internet so whatever.
This is a typical BH behavior. I just ignore them.

I'd use straight-line depreciation schedule to calculate the car value. For my next car, I'll probably use 10 yrs. All for simplicity. I understand it's not accurate but it's fine by me.

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by MotoTrojan » Fri Jan 31, 2020 2:16 pm

I go to Carmax every 7 days so I have a valid trade-in value, making this part of my net worth truly liquid and verified.

Just kidding.

I hope to grow my portfolio enough that a cars value won't matter. The only impact I can see from including this in my net worth calculation is the possibility that I just buy a more expensive car since I won't feel like my net worth is hit as hard by including the value :twisted: .

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by tesuzuki2002 » Fri Jan 31, 2020 2:23 pm

HoosierJim wrote:
Fri Jan 31, 2020 11:03 am
Just as some people on this site, we drive our cars until they don't move anymore so the asset value depends on how much gas is in the tank.
+1

tesuzuki2002
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by tesuzuki2002 » Fri Jan 31, 2020 2:29 pm

I put them on my NW balance sheet when I purchase the car... Every so often 6 months of so... I take some dollar amount off and consider it depreciation... Eventually I just stopped and left them. Currently I own a Jeep that I have marked its residual value at $1K and two Motorcycles but that are marked at $500 each..

In reality these could sell for $10K even at this point.. but when I hit millionaire status... I asked my self if the residual value of my vehicle really event matters any more? Much like my personal residence... I use the cars and I live in the house.. Yes they all have value... but they are not something that I'm trying to tap and value back out of... They are tools of utility that service a purpose in my life...

Maybe an odd way of looking at it.. but if I went and spent $30K on a new vehicle today... I would do that same thing over a 5 year period..

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TierArtz
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by TierArtz » Fri Jan 31, 2020 2:43 pm

I use Edmund's used car appraisal tool; input the specifics; and then record the Private Party price in Quicken a couple of times per year: https://www.edmunds.com/appraisal/

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Broken Man 1999 » Fri Jan 31, 2020 2:45 pm

I actually see the CarMax route as being pretty good.

CarMax would give you the price you could actually sell for at that moment in time. Other sources of sales info might or might not be the value you would receive. The selling prices on various websites, publications are what someone else's vehicle sold for. A range of prices that your particular type vehicle could fall into, but not the value of your vehicle.

IOW, CarMax represents the price a WILLING buyer is offering. Unless you receive the same type offer as CarMax actually puts in your hand, you will have to speculate about the value until you have a WILLING buyer making you an offer.

That is how I would determine the value of a vehicle if I needed to provide a net worth amount.

And, OP is correct including vehicle value in their NW figure.

Broken Man 1999
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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by beehivehave » Fri Jan 31, 2020 2:48 pm

To what end, unless you are a high end car collector?
If it makes you feel better, why not include your furniture, clothing, groceries on hand and all personal effects in net worth as well?

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by smitcat » Fri Jan 31, 2020 3:01 pm

beehivehave wrote:
Fri Jan 31, 2020 2:48 pm
To what end, unless you are a high end car collector?
If it makes you feel better, why not include your furniture, clothing, groceries on hand and all personal effects in net worth as well?
Reasons why to track include:
- taxes when the vehicle is in a small business
- net worth value for when applying for loans
- insurance to value what coverage is appropriate
- net value to consider when trading, selling or changes to the mix

"why not include your furniture"
If you have a rare piece that is valuable then yes - same for artwork and other collectibles.

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by beehivehave » Fri Jan 31, 2020 3:08 pm

smitcat wrote:
Fri Jan 31, 2020 3:01 pm
beehivehave wrote:
Fri Jan 31, 2020 2:48 pm
To what end, unless you are a high end car collector?
If it makes you feel better, why not include your furniture, clothing, groceries on hand and all personal effects in net worth as well?
Reasons why to track include:
- taxes when the vehicle is in a small business
- net worth value for when applying for loans
- insurance to value what coverage is appropriate
- net value to consider when trading, selling or changes to the mix

"why not include your furniture"
If you have a rare piece that is valuable then yes - same for artwork and other collectibles.
Those are issues separate from net worth that can be addressed to the IRS or insurance company as needed.
When does anyone ask you a question about your net worth and expect you to include the value of your car, a fast depreciating asset if ever there was one, even assuming its paid for?
But if it makes you feel richer, go for it.

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by SundayMorning » Fri Jan 31, 2020 3:09 pm

HoosierJim wrote:
Fri Jan 31, 2020 11:03 am
Just as some people on this site, we drive our cars until they don't move anymore so the asset value depends on how much gas is in the tank.
Same here. When I say the car is totaled - my wife knows we are low on gas. :D

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by smitcat » Fri Jan 31, 2020 3:12 pm

beehivehave wrote:
Fri Jan 31, 2020 3:08 pm
smitcat wrote:
Fri Jan 31, 2020 3:01 pm
beehivehave wrote:
Fri Jan 31, 2020 2:48 pm
To what end, unless you are a high end car collector?
If it makes you feel better, why not include your furniture, clothing, groceries on hand and all personal effects in net worth as well?
Reasons why to track include:
- taxes when the vehicle is in a small business
- net worth value for when applying for loans
- insurance to value what coverage is appropriate
- net value to consider when trading, selling or changes to the mix

"why not include your furniture"
If you have a rare piece that is valuable then yes - same for artwork and other collectibles.
Those are issues separate from net worth that can be addressed to the IRS or insurance company as needed.
When does anyone ask you a question about your net worth and expect you to include the value of your car, a fast depreciating asset if ever there was one, even assuming its paid for?
But if it makes you feel richer, go for it.
"When does anyone ask you a question about your net worth and expect you to include the value of your car, a fast depreciating asset if ever there was one, even assuming its paid for?"
- on applications for business loans
- on applications for business insurance
- not all cars/trucks/boats depreciate quickly, some actually appreciate

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by White Coat Investor » Fri Jan 31, 2020 3:12 pm

LiterallyIronic wrote:
Fri Jan 31, 2020 10:04 am
Do you check Kelly Blue Book for an estimate? Do you have a depreciation formula? Do you check what similar cars are going for?
I don't, but if I did I'd use the KBB private party value.

I wouldn't include them in your net worth since they're really liabilities anyway and you're almost surely not going to sell them and turn them into an investment. At most, you're going to sell them and buy another vehicle. Do you include your clothes and furniture too? Where do you stop? Personally, I count my home and investments. That's it.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by Sidney » Fri Jan 31, 2020 3:15 pm

Only on an asset list that I provide to the lawyer who keeps my will. But I don't value it. I list the house at assessed value. That is close enough for estate work.
I always wanted to be a procrastinator.

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Re: For those of you that include your vehicle(s) in your net worth, how do you determine its value?

Post by 260chrisb » Fri Jan 31, 2020 3:16 pm

I don't count my daily driver in my net worth as it's a depreciating asset and while there will always be some value to it, I have no need to count it. I know roughly what it's worth and that's all I need. Having said that; I also have some cars in a collection and a couple that I need to have appraised but one way I estimate their value is with classified ads for similar cars on Auto Trader or Cars.com. I often print and keep ads for specific cars as backup in the event I ever had an insurance claim. While this isn't the same as an appraisal, seeing several like cars with an asking price of 40K for an example helps my case if an insurance company thinks it's worth 25K. Using NADA helps as well.

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