why must people talk about a car as if it were an investment?

[CraigRT]

I don't think I'd buy new again unless I got a good deal, and the car had phenomenal resale value.. my next car will likely be a 99-00ish

 

[cchen]

Originally posted by: CraigRT
I don't think I'd buy new again unless I got a good deal, and the car had phenomenal resale value.. my next car will likely be a 99-00ish

me too.. m3 all the way

 

[Pliablemoose]

Automobiles are an expense, & we're brainwashed to think they're an investment.

The classic car market can be volatile & for us mere mortals, breaking even is a true feat...

 

[wyvrn]

Originally posted by: Pliablemoose
Automobiles are an expense, & we're brainwashed to think they're an investment.

The classic car market can be volatile & for us mere mortals, breaking even is a true feat...

Then how come people see education as an investment? There is no direct return. Without an education, you get a lower paying job. Without transporation, you cannot get to work. What's the difference?

 

[vi edit]

I've bought two new cars and I never once considered them anything more than an expense/purchase.

When a payment on a new car is 5% of your monthly budget whoopdeefreaking do. I don't go out to eat as much and dump dump a ton of money in movies and various other entertainment. That's just how I choose to spend my money.

Hell, I haven't even spent more than $100 on my computer in the last 2.5 years which more than a lot of people on this board (not off topic in particular) can say.

I don't carry any CC debt and I already have a nice chunk of equity on my home that I purchased 3 years ago. Sure buying used would be a better choice, but eff it...I can afford it.

 

[Chaotic42]

I carefully consider about 95% of my purchases. I've wanted to buy LO-MAC for about a year now, but I *still* haven't been able to justify its cost.

I did the same thing today with Futurama Season 3 at Best Buy.

 

[vi edit]

Originally posted by: wyvrn

Originally posted by: Pliablemoose
Automobiles are an expense, & we're brainwashed to think they're an investment.

The classic car market can be volatile & for us mere mortals, breaking even is a true feat...

Then how come people see education as an investment? There is no direct return. Without an education, you get a lower paying job. Without transporation, you cannot get to work. What's the difference?

Education NOT an investment?

Ummm....my wife put 7 years into pharmacy school to make just shy of 6 digits a year when she gets out. Sure she has loans, but it's worth it. Sure she could have done a 4 year program but she wouldn't make as much.

A car on the other hand....is still transportation whether it's a $3,000 junker or a $300,000 supercar.

If all you have to drive is 5 miles a day, a $10,000 hyundai will get you there just as well as a $50,000 BMW 5 series.

 

[Pliablemoose]

Originally posted by: wyvrn

Originally posted by: Pliablemoose
Automobiles are an expense, & we're brainwashed to think they're an investment.

The classic car market can be volatile & for us mere mortals, breaking even is a true feat...

Then how come people see education as an investment? There is no direct return. Without an education, you get a lower paying job. Without transporation, you cannot get to work. What's the difference?

An education hopefully increases your earning power. Driving back & forth to your job can be done efficiently in a 68' SuperBeetle or a Lexus, or you can take public transportation.

You don't consume an education, you consume a car by driving it.

 

[Syringer]

Same can be said about a public university that costs $10k a year vs a private one that costs $40k a year. Is there necessarily any sort of greater return in the private university?

 

[MScrip]

When you think about investments, the obvious definition refers to money. I think of an investment as something you put X in and then get more X out. I think it's more of a direct relationship to input/output.

You buy a house, you put money into it, you remodel, you build equity, etc. When you get ready to sell that house, you get your original money back plus more. Money in / Money out. Direct relationship.

When you use the word investment to refer to something else, that definition gets fuzzy. Parents will "invest" in their children's future by spending $100,000 on college. But... those parents will never see that $100,000 again. They receive non-monetary gains instead. Kids get careers, happiness, security, etc. So, you can use the word investment to refer to college, but it's not the direct input / output scenario. College is a purchase that results in value.

The same is true when talking about automobiles. You put money into a car, and you get the utility of transportation. It's not a direct relationship either. To me, that does't sound like an investment, because you put A in but you get B out. An automobile is a purchase/expense.

An investment shouldn't require anything extra to keep going. Cars consume gasoline, require insurance, tires, tune-ups, oil changes, etc. From the moment you buy a car, you never stop feeding it! That doesn't sound like an investment to me!

To review... I believe that something must have the same input/output to be considered an investment. Otherwise, it's a purchase that results in value.

 

[Turkish]

Originally posted by: Syringer
Same can be said about a public university that costs $10k a year vs a private one that costs $40k a year. Is there necessarily any sort of greater return in the private university?

Yes, a college education = more $$$ (most of the time).