How much of your net worth does your car represent?

[calmloki]

Our four drivers, and usually one gets 95% of the miles, maybe add up to .4% of our net worth. We don't include cars in figuring net worth though. Another non-driver money pit has had 1% of our NW poured into it with almost zero gratification.

 

[Lucantes]

Looks like 12 year old is currently 0.2% of NW, new one planned for when I retire will be 1.8% of NW initially, and will rapidly depreciate from there.
I imagine it does reflect me somewhat: it is large, slow and comfortable.

 

[FUEGO]

0.41%. Two fourteen year old Hondas that need paint jobs (but in perfect mechanical condition!). Set that against a seven figure NW.

Cars just get us from point A to point B when it's too far to walk the distance.

 

[stepford]

I think I'm immune to the charge of buying a midlife crisis sportscar - since I've been buying idiotic sportscars since I was 19. The last one (the only new car I've ever bought) cost about 2.0% of my NW on purchase. As depreciation of the car and investment returns have had their inevitable opposite effects this number has declined to about 0.5%.

I would expect the vehicles I buy during ER to stay well under 1% of NW (though if DW gets her way and a small RV is in our future there may be a one-time 3-4%).

 

[Rick_Head]

Our cars are part of our expenses, not NW.

 

[W2R]

Too insignifcant a number to even bother doing the math.

+1

My SUV is a 6 year old model, although it has a lot of miles left in it.

 

[frayne]

.013%, if that and I have never considered vehicles as assets, more of expense liabilities in my way of thinking.

 

[robertf57]

our cars are part of our expenses, not nw.

bingo!

 

[eytonxav]

Mid life crisis years were higher, but now probably less than 1% with an SUV.

 

[Kimo]

We have 1 car, a 2009 Subaru Forester, I like others classify it as expenses. We only have 50K miles so we really don't drive much for a 5 year old car.

 

[Closet_Gamer]

4 door jeep, 2008. Wife has cayman S, 06.

I'd say the cost was 15% my current savings. Maybe 10% NW.

Both cash.


Sent from my iPhone using Early Retirement Forum

A post like this on this board is likely to trigger an intervention

On the other hand my wife is online looking at a $118K Mercedes RV right now, so I might need an intervention of my own

 

[wingfooted]

Seven vehicles plus four motorcycles, all ranging between two to forty years old. Only one of the vehicles did we buy new. They make up less than 2% of net worth and I don't count vehicles (or motorcycles) as part of my net worth.


Sent from my iPad using Early Retirement Forum

 

[Closet_Gamer]

In answer to the original question, we're at 1.8% but it's a bit high as we're fresh off replacing one car. A little portfolio growth + a little depreciation will rapidly knock that back down again.

This is a great ratio to know though...otherwise phrased as "what % of your assets are depreciating in your driveway?"

 

[jkern]

10 year old BMW 330i, currently 0.4% of NW. A car is an expense and an asset. Why not count it as part of your NW? I certainly don't count it as an investment or part of a portfolio.

 

[sanfanciscotreat]

two cars together less than 1 % of investable net worth, which doe not include vehicles, house and other material possessions.

 

[Kimo]

10 year old BMW 330i, currently 0.4% of NW. A car is an expense and an asset. Why not count it as part of your NW? I certainly don't count it as an investment or part of a portfolio.

This really depends on the car IMHO. My 67 Shelby GT 500 gets no mention and I think of it as an asset. My 2009 Subaru is thought of as an expense, if I ever sell it the money will give me a few bucks that will go into another car that will start depreciating by the time it gets home. I think it is really such a small number for most folks on here they probably don't give a lot of thought to it (I could be wrong, never assume anything), It is fun to read what others think though...............

 

[Cobra9777]

Three vehicles for the two of us... 1997 small Ford pickup, 2001 Chevy mega-SUV, and DW's 2006 BMW. Per KBB, their combined value is about 0.7% of NW, and that's probably generous. The first two are at 160K miles and going strong. The latter is a money pit but DW refuses to give it up.

 

[RonBoyd]

A post like this on this board is likely to trigger an intervention

On the other hand my wife is online looking at a $118K Mercedes RV right now, so I might need an intervention of my own

We have one of those 100K RVs. After six years it is now valued about half that. Some "net" worth, huh?

 

[Kimo]

We have one of those 100K RVs. After six years it is now valued about half that. Some "net" worth, huh?

We would love a really nice new class B (we have no rec. vehicle) but your quote is exactly one of the main reasons we don't even go looking any more.....

 

[VaCollector]

Well over $100K in family vehicles and not even considered in NW....

 

[eta2020]

OP here.

Our 2 cars are about 0.3%-0.4% of our NW. I am surprised how many people are sub 1%.

Once retired we will scale it down to 1 car and sub 0.2%.

 

[RonBoyd]

We would love a really nice new class B (we have no rec. vehicle) but your quote is exactly one of the main reasons we don't even go looking any more.....

Then buy a used one.

I, on the other hand, feel that I have gotten my money's worth (the depreciation) during the 150,000 miles we have put on it. We have been to every State at least once and most National/State Parks. We could not have done that without expense of some kind. My guess is the RV reduced that outlay about 2/3s by saving on (M)Hotel/restaurant cost.

(And, FWIW, I could most likely put another 150K miles on it without major cost before divesting.)

 

[easysurfer]

$0. I don't count my car as part of my net worth.

 

[Kimo]

Then buy a used one.

I, on the other hand, feel that I have gotten my money's worth (the depreciation) during the 150,000 miles we have put on it. We have been to every State at least once and most National/State Parks. We could not have done that without expense of some kind. My guess is the RV reduced that outlay about 2/3s by saving on (M)Hotel/restaurant cost.

(And, FWIW, I could most likely put another 150K miles on it without major cost before divesting.)

Okay, you have convinced me to at least take a peek!!!!!! Thank you, I think.

 

[RonBoyd]

Okay, you have convinced me to at least take a peek!!!!!! Thank you, I think.

You won't regret it.

Oh! I do have one caution: If the both (or either one) of you have an issue with "personal space," then a Class B will definitely be challenging. However, if you enjoy each other's company, then this is a big plus.