How much of your net worth does your car represent?
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Sea Kayaker
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I think the decimal placement is proving especially troublesome. 
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eta2020
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My family owns 3 old vehicles that together represent about .013 or 1.3% of our NW. FWIW the value of a car is an asset (that depreciates rapidly). Any loan balance is a liability. The difference between loan and value = the equity on your balance sheet. I don't count my vehicles in calculating my NW because it is so insignificant.
sanfanciscotreat
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A lot of people also have a problem with changing parts per million to percentages to grams per ton.
I don't even try. There's always some online calculator to do that stuff and I'd just muck it up anyway.
Bestwifeever
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Our cars affect our income percentagewise a lot more than our net worth. Big oil should give cars away...
GravitySucks
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Ouch! I'm closing in on 3%! That counts a new Camry for me (old car had the check engine light come on the day I pulled out of the parking lot my last day of w*rk. Was a frightening sign!) Also includes a collector car that will be auctioned in the spring (Anyone interested in a 73 Rachero?), DD's car that I still need to gift her officially through the DMV, DM's car that has my name on the title to protect it from some unscrupulous people, and an ancient RV I'm trying to bring back to life.
Should drop down to about 1.5 percent in a couple years.
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Should drop down to about 1.5 percent in a couple years.
Sent from my Nexus 7 using Early Retirement Forum mobile app
lemming
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It did give me pause to realize replacing a car will be nearly a full year of SWR.
Does that mean I take off a year of my lifespan or like I said before-i've been saving for a new car for years-but no sinking fund.
Does that mean I take off a year of my lifespan or like I said before-i've been saving for a new car for years-but no sinking fund.
Rick_Head
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For those of you who question the % number, I'll let you calculate them (although I don't consider vehicles as assets). I'm only including daily drivers, not my hobby stuff.
NW = ~5M
Cars values = ~ $50K
Cars are 2012 Ford Escape, 2005 Mustang GT and 2007 Ranger.
NW = ~5M
Cars values = ~ $50K
Cars are 2012 Ford Escape, 2005 Mustang GT and 2007 Ranger.
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eta2020
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I don't know what you wrote.......With minor in Mathematics and few glasses of red wine looks to me like 1%
ziggy29
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Less than 2% (both of our cars combined), and since I don't include a depreciating, consumable asset as part of my net worth anyway, it's mostly a moot point.
WhoDaresWins
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I don't count my 2015 vehicle as part of my NW, either, but it would be about 1% if I did.
dunkelblau
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Exactly 0.1% when I drove it off the dealer's lot two years ago, and a bit less now. With respect to home "I rent".
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According to Kelley Blue Book, your 2006 Honda Element, most basic model, with 190k miles in good condition (not very good or excellent) is worth $4568. If it is .003% (=.00003) of your net worth, then your net worth must be $4568/.00003 = $15.23 million. Very well done!!
brett
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Our car, 2006 Accord, is a depreciable asset. It's value continues to decline and our NW continues to increase. It does not even figure into our NW.
I worked with several people who had to have new cars every three years. And expensive ones at that. It was part of the job/status for them and often for their spouses.
They are still working.
We are FIRE'd-doing what we want and travelling where we want.
I worked with several people who had to have new cars every three years. And expensive ones at that. It was part of the job/status for them and often for their spouses.
They are still working.
We are FIRE'd-doing what we want and travelling where we want.
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Opps; forgot to multiply by 100...its actually .3%. Either way I don't think of cars as any more than a tool for transportation and wouldn't consider it part of my net worth anyway.
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Me neither, although I do have one car that I drive just for fun on a sunny Saturday.
You're off by a factor of ten - it would be 152.3 million.
Meadbh
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I got a good illustration of depreciation this week. Honda sent me a letter advertising trade-in incentives for my 2012 CRV so I went to check it out. The best incentives were on the 2014 models that they want to unload. I could switch to an equivalent new 2014 CRV for $7700, which means that the average annual depreciation so far has been less than $4000.
My car loan will be paid off next July. If the difference had been $5000 or less, I might have made the switch. But as my primary goal is to eliminate consumer debt, I am keeping my vehicle. I told them I'd be back in 20 years.
My car loan will be paid off next July. If the difference had been $5000 or less, I might have made the switch. But as my primary goal is to eliminate consumer debt, I am keeping my vehicle. I told them I'd be back in 20 years.
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Major Tom
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I just received an e-mail notification for the most recent post in this thread. It's early, the first coffee is still brewing, and my brain wasn't quite in gear. I thought the thread read, "How much of your net worth does your CAT represent?" and was already thinking of my reply, before the mental haze lifted
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My cats are priceless to me, but I doubt that I could sell them to anyone, so they don't go in my net worth.
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You are quite correct.
Meadbh
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I just received an e-mail notification for the most recent post in this thread. It's early, the first coffee is still brewing, and my brain wasn't quite in gear. I thought the thread read, "How much of your net worth does your CAT represent?" and was already thinking of my reply, before the mental haze lifted
Hmmm....I wonder what is the depreciation on cats?
