Poll:What is your Car Value to Home Value ratio

[kyounge1956]

Well, if you had asked me this three years ago, I could have said the ratio was darn close to zero, but I still had a driveable car. At the time my 1980 Toyota Tercel was still running, but when it died, I refinanced my house and took cash out for a new car. At the time of the refinance, the house was appraised for $303K. I donated the old car to charity, and according to the receipt I got to fill out my taxes the next year, they got $100 for it, I assume as scrap metal. So, for the few months it took my new car to get to the dealership, the ratio was $100/$303,000, which is 0.033%. Even if the car before it died was worth several times as much, I'd still have had a ratio of under 1% with a driveable car.

At this point, I have a going-on-three-year-old car, which is worth much more than my decrepit old Tercel was, and the probable sale price of the house has declined quite a bit, so today my car/house ratio is probably somewhere around 8%.

 

[NW-Bound]

Are we supposed to include motorcycles?

Sure! Anything that's on wheels. I was shocked learning that there are bicycles costing more than my 15-yr old car now. So, put it in!

 

[crazy connie]

06 Caddie (which was my retirement present to myself) worth about 20K vs 3600 sq ft McMansion which has dropped in value to $400K. I only paid $250K for the house about 10 years ago. Even with the drop in RE values the house has been a good investment but the car is nice for Vegas runs! Plan on keeping the car for 4 to 6 years yet, hope to downsize the house in 2010 or 2011.

 

[toofrugalformycat]

I tried to use Edmunds but one of the cars was too old. Combined age of the two cars: 36.
I estimate about 1%.
Darn, I hope this doesn't jinx my two old trusty rice rockets, bragging about their age!

 

[Spanky]

< 1%. Car's value is about $2K while the estimated value of the house is $500K.

 

[BunsGettingFirm]

I'm still waiting for the post that says "Car = $400, house = car, so 100%".

Do we have any forum members from Detroit?

 

[Koolau]

Do we have any forum members from Detroit?

I spent a month there one week! That help?

 

[Westernskies]

...maybe someone here can help me with the math?

 

[ls99]

...maybe someone here can help me with the math?

Hard to tell, he owns the trailer park, the one behind the car is his office.

Besides that is his other car.

 

[FinanceDude]

...maybe someone here can help me with the math?

Quit taking pictures of my HOUSE!!!!!

 

[FUEGO]

Hard to tell, he owns the trailer park, the one behind the car is his office.

Besides that is his other car.

Nah, that's the construction trailer for his new mansion. He just popped in for a quick meeting with the architect and project manager to make sure the shipments of marble and gilded trimwork are stilling rolling in on schedule.

 

[Independent]

The median sales price for an existing house is about $200k. The median for a new care is $27k. Suppose the average "car on the road" is 1/2 the price of a new car. That would give 6.75% for one car, and 13% for two cars.

It looks like this group is a little house rich or car poor. Probably due to retirees who have seen house prices go up while they've been living in them.

 

[Westernskies]

It looks like this group is a little ... car poor.

...we LBYM'ers get so excited when you talk dirty like that.

 

[SarahW]

[Wanders off, thinking "Don't care! Wanted the car, got the car, keeping the car! It's paid for! So there!..."]

I'll just stand over here by Marilyn.

 

[freebird5825]

I'll just stand over here by Marilyn.

Save some room for me, too.

 

[HillCountry]

Just got my new car today. About 7% of the value of the house.

 

[JOHNNIE36]

I voted zero percent. Don't know any other way to indicate that I have no investment in a leased vehicle. What I am paying to drive this car is just like rent. At the end of three years I turn it in and start all over so I have no "skin in the game".

 

[imoldernu]

Don't we just love our cars... Search "cars" and find them mentioned in about half of all threads.
http://www.early-retirement.org/forums/f27/favorite-vehicle-youve-ever-owned-63640.html

Checking back to see if your original opinion has changed.

 

[ziggy29]

Checking back to see if your original opinion has changed.

Mine has. Well, at least it will when our last house (vacant for a year) finally closes on April 3 and it will be OUT of our hands.

So in reality, ours is "infinite" as in a division-by-zero error -- we have two cars worth *maybe* a combined $15K, but DW's employer provides our housing rent-free and pays most utilities.

 

[Koolau]

I guess what surprises me most about this resurrected thread is that I still own 2 of the 3 cars I alluded to back in 2009. I finally had to put a bullet between the headlights of the 3rd car (over 20 years old and actually, I sold it for $100) which brings the average age of my 3 cars up to about 14 years. I "traded" as many houses as cars since then (one - and it is worth more.) So, overall, my car value to house value keeps going down. No brag - just fact. Cars are almost too old to figure a value, so I'd guess maybe my new ratio is a little over 1%. As always, YMMV.

 

[Mulligan]

I guess what surprises me most about this resurrected thread is that I still own 2 of the 3 cars I alluded to back in 2009. I finally had to put a bullet between the headlights of the 3rd car (over 20 years old and actually, I sold it for $100) which brings the average age of my 3 cars up to about 14 years. I "traded" as many houses as cars since then (one - and it is worth more.) So, overall, my car value to house value keeps going down. No brag - just fact. Cars are almost too old to figure a value, so I'd guess maybe my new ratio is a little over 1%. As always, YMMV.

I am around the same figure. You generally can only be that low with one of two reasons. Either one has a vehicle that new cars fear whenever parked beside it in a parking lot, or a huge mansion of a home. Unfortunately for me, I am the former.


Sent from my iPad using Tapatalk

 

[scrabbler1]

I live in a studio apartment I ownoutright in a large co-op complex so even a 7-year-old, cheap car will be worth 7% of the apartment's value.

 

[panacea]

About 5%... $20,000 for two cars and one house at around $375,000. I may purchase another house to bring my ratio down though.

 

[nvestysly]

The ratio for DW and I is right at 15% but we own 6 vehicles (things with tires that require license tags) and our house is relatively modest for the area we live.

Yes, I know... who needs 6 vehicles? 5 have engines (i.e. cars/trucks) and 1 is a travel trailer. I guess I'm a car guy: 1966 Chevrolet El Camino, 1984 Jeep CJ-7, 1999 Honda CR-V (daily driver), 1996 GMC Suburban, and a 2005 Chevrolet Suburban. They're all paid for and we can afford the insurance, etc. so it doesn't seem too crazy to me. We'll be eliminating the Honda or the 1996 Suburban sometime this year.

 

[traineeinvestor]

Zero - we don't own a car because public transport is both cheap and excellent out here.