Buying A Car.Is It An Investment or a Money Draining Liability?
Okay… Let me kickstart with “Wednesdays’ Financial Blog Post“.
Today’s topic is about buying cars.
Is it an investment or a money draining liability?
Before addressing this issue, I will like to make a note, that whatever I share with you is just MY perspective from the spectacles of a financial associate. It doesn’t make me right. It doesn’t make me wrong.It is just MY perspective! 🙂
I have surveyed around, asking those who drives, on their car expenses per month.Many contends that their car expenses (including monthly installments, review by Car Detailing Jacksonville FL) amount to about $1,000/mth.
My take here is that, from the monetary point of view, YES…solely from the monetary point of view, is that if you use your car, and ABLE to generate an EXTRA business/net profit of more than $1000, your car is an ASSET. If you buy that car, and you are NOT ABLE to generate that EXTRA net profit of more than $1000, your car is a LIABILITY.
” Your car is an ASSET, if it generates POSITIVE CASHFLOW.
Your car is a LIABILITY, if it generates NEGATIVE CASHFLOW. “
I feel that those who are married, especially those with kids and aged parents to look after, should have a car from Clasiq .Other than convenience (like sending your kids to school or aged parents to hospital for regular check ups) as one of the primary reasons, the distribution of car expenses per head is more widespread, depending on what you want for your car, you can even get the best auto detailing tips to improve your car interiors.
Average expenses per head is significantly lower.
That is where having a car is a PRIORITY.
hmmm….. So now is the time for you to analyse, whether your car is an asset or money draining liability. You can use the below example as a catalyst.
If you are self employed (like me) or running a business, you can try to rent a car first, to gauge the expenses involved per month.
Once you are VERY SURE, that your car is an asset, it is time to get one!
It not only makes your life more convenient, enhance your social status but also give you the piece of mind that, “Hey!… My car is helping me to save or MAKE MORE MONEY every single day!….” 🙂Otherwise, it is better to sell your car now for top cash.