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Anonymous

16 Nov 2019

∙

Are cars really depreciating assets?

I thought of buying cars as a form of investment. Why is it considered depreciating assets?

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Lim Chun Long Jimmy

16 Nov 2019

Co-founder at PolicyWoke (Traded Endowment Policies)

An (appreciating) asset puts money into your pocket.

A liability takes money out of your pocket.

When you buy and use a car, you need to take money out of your pocket for expenses such as fuel, maintenance, parking fee, etc.

Therefore, the car is a liability.

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Hariz Arthur Maloy

07 Jun 2019

Independent Financial Advisor at Promiseland Independent

Other than super vintage mint condition ones, yes. You can't sell a car for more than what you bought it for.

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HC Tang

02 May 2019

Financial Enthusiast, Budgeting at The Society

Normal car is a liability due to the need to feed petrol, maintaining and changing parts to ensure m...

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