S2k Depreciation
08-06-2008, 10:05 AM
#22
Registered User
Your car is only worth as much as someone else will pay for it.
I see the term, depreciating asset used, it's not, it's a depreciating liability.
The only way to make this car an appreciating asset is to keep it in mint condition, keep the miles low, keep it 100% original and hang on to it for 50 years. Oh, and never drive it off the dealers lot.
I see the term, depreciating asset used, it's not, it's a depreciating liability.
The only way to make this car an appreciating asset is to keep it in mint condition, keep the miles low, keep it 100% original and hang on to it for 50 years. Oh, and never drive it off the dealers lot.
08-06-2008, 10:31 AM
#24
Registered User
Originally Posted by 3ngin33r1,Aug 6 2008, 12:05 PM
I see the term, depreciating asset used, it's not, it's a depreciating liability.
From www.m-w.com:
asset: 3 a: an item of value owned
liability: 2: something for which one is liable; especially : pecuniary obligation
depreciate: 2 a: to lower the price or estimated value of
A car is an item of value that is owned, therefore it is an asset. Since the price/value of the car is becoming lower over time, then it is a depreciating asset. If you have a loan against it, then the loan would be the liability... but not the car.
08-06-2008, 10:39 AM
#26
Registered User
Join Date: Dec 2007
Posts: 507
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by mxt_77,Aug 6 2008, 10:31 AM
Maybe you should check your vocabulary words.
From www.m-w.com:
asset: 3 a: an item of value owned
liability: 2: something for which one is liable; especially : pecuniary obligation
depreciate: 2 a: to lower the price or estimated value of
A car is an item of value that is owned, therefore it is an asset. Since the price/value of the car is becoming lower over time, then it is a depreciating asset. If you have a loan against it, then the loan would be the liability... but not the car.
From www.m-w.com:
asset: 3 a: an item of value owned
liability: 2: something for which one is liable; especially : pecuniary obligation
depreciate: 2 a: to lower the price or estimated value of
A car is an item of value that is owned, therefore it is an asset. Since the price/value of the car is becoming lower over time, then it is a depreciating asset. If you have a loan against it, then the loan would be the liability... but not the car.
08-06-2008, 10:41 AM
#27
Registered User
Originally Posted by hguerrero,Aug 6 2008, 12:39 PM
In the most general sense, a liability is anything that is a hindrance, or puts individuals at a disadvantage.