TD2626 wrote: ↑
Wed Sep 13, 2017 7:00 am
Wouldn't you add the value of the car to your net worth, such that when you bought the car, net worth wouldn't go down by much (except by the significant depreciation caused by driving it off the lot)?
A couple of points here:
First, I don't worry about or compute my Net Worth. My only financial metrics of concern are my monthly/annual income and my investible assets.
Secondly, I look at most of my consumer purchases as done deals. Whether clothing, televisions, power tools, or motor vehicles, they last some number of years until they break, wear out, or become obsolete and then get tossed.
The fact that my 2016 F-150 cost 100 times more than my sliding compound mitre saw does not confer Exalted Status on it *.
Thirdly, some new cars apparently don't lose much resale value the first two years. This is second hand info from others on the forum here who try to buy a two year old Honda or Toyota, only to find the price not that much lower than a new car.
As noted, this doesn't apply to me since I neither buy nor sell late model used cars...
* - OK fine, I lied. My F-150 does have higher status than my mitre saw, but only as long as it works properly and doesn't start to crumble...
Attempted new signature...