If an asset is something of value owned, how can one be an asset to a company? The company can't own you.

 

If you took a Business or Accounting class, go back and retake it.

If you have not taken those classes yet, then stop trying to justify yourself.

 

i think being an asset to the company is more of an expression..

but anyway i believe 3ngin33r1 is right in a way as well, this car can be a liability if you consider insurance, gas, maint. etc...in theory at least haha

I HATE ACCOUNTING LOL
ha this thread goes to show how bored we all are today

 

[QUOTE=3ngin33r1,Aug 6 2008, 04:58 PM] If an asset is something of value owned, how can one be an asset to a company?

 

I had this discussion of the recent depreciation with my cpa and he felt the poorer economy was causing a drop in the demand/price of toys and an increased need to sell them. Be glad you didnt buy a brand new suburban 2 years ago. When I bought my car new in 06 there were only slightly more than the used 04 or 05 models. What you paid at the time was likely justified. The future cannot be predicted perfectly but, if you want to avoid depreciation find somthing that's hit the lower lever and now has some stability. 1997 NSX or porsche 993? I'm still glad I got the S over the 96 993 vert I was considering. I've lost about 10k over what I would have over the 993 but, I'm not selling. FYI- the economy has created a good market to buy!

 

On a balance sheet

assets put money into your bank account
liabilities remove money from your bank account

your s2000 is the lenders asset (it puts money in their account)
your s2000 is your liability (it takes money out of your bank account)

You have never earned a dime of profit off your s2000, it has only caused you expenditure (unless you use it for the taxi service you own, in which case it is a depreciating asset and you get a tax credit for the depreciation of a business asset)

Your s2000 is a liability. and it is depreciating.

 

I agree, especially about the lotus part

 

Drive the car and enjoy it. Check wholesale and retail prices when your ready to sell. We are driving the car we really like and thats worth the cost of our dwindling depreciation isn't it?.I think so. You can drive and lose on this car or you can drive and lose even more with something else.

 

S2000 did not sell well during 2007. Many dealers had to lower their prices to around 28K. This affected the used market.