Just like buying a new play station or a plasma tv are not investments. Investments will have returns, but these purchases don't.
2006-10-20 07:35:15 · 13 answers · asked by w 2 in Cars & Transportation ➔ Buying & Selling
I can't believe many car dealers and salemen call it an investment.
2006-10-20 07:43:07 · update #1
All cars depreciate, even used ones.
Buying a used car from a dealer is dumb idea, buy from an individual and don't pay for profit, fees, and taxes.
2006-10-20 07:49:32 · answer #1 · answered by Manny 6 · 0⤊ 0⤋
Of course from the stand point of the car it is not an investment because the car will always go down in value, unless you get some type of classic vehicle or customized vehicle.
However one could call it an investment in yourself if you purchase a nicer car and feel better about yourself, or if you're in a type of business where you must impress clients. I mean would you feel differently about a guy who comes to an interview dressed in a suit or a guy dressed in torn blue jeans and ripped tank top? Your suit is going to lose value once you purchase it, but it's an investment in what type of job you could potentially get. Same with a car. If your realtor comes up to you and shows you and house and drives you around in a car that's about ready to fall apart or he/she drives you around in a nice comfortable car with A/C the car is an investment.
It's all a matter of persepective. However from the straight stand point of an investment, I'd let the car dealer know that cars are typically not a good investment. :-p
2006-10-20 07:59:56 · answer #2 · answered by hsueh010 7 · 0⤊ 0⤋
You are absolutely right. The only exception is if you purchase a car that is likely to become a collectable or a classic. Purchasing an existing classic car may also be an investment because it is likely to rise in value depending on demand.
2006-10-20 07:39:13 · answer #3 · answered by siuasoto 2 · 1⤊ 0⤋
I couldn't agree more. A new car starts depreciating in value the minute you drive it off the lot! Unless you are buying a classic or really rare model they are not investments.
2006-10-20 07:37:59 · answer #4 · answered by Mary P 2 · 0⤊ 0⤋
i disagree. an investment is where you find value in what your purchase. you invest your money to get a return. so the playstation is bought because you think the value of entertainment is equal to or greater than the cost of it. it's not always what you get in the end. it's what you get out of it.
say you have a car. you drive it all over the world and see every sight you can imagine. was it worth the cost of the car? thank you. and your welcome.
2006-10-20 07:44:56 · answer #5 · answered by phantasmo 4 · 1⤊ 0⤋
I agree unless the car is used for a business that makes you money. Like a semi truck would be an investment.
2006-10-20 07:37:58 · answer #6 · answered by tumbleweed1954 6 · 1⤊ 0⤋
A collectable / classic / rare car is an investment. Any other car is throwing money down the drain.
2006-10-20 07:39:14 · answer #7 · answered by Lloyd 5 · 1⤊ 0⤋
You are correct. I have sold cars in my previous careers. Always buy used. If you by new you loose thousands as soon as you pull off the lot. I bought a used 2004 Toyota Carolla for 14,500. After a year I traded it in. I owed 11,200 and got 11,000 for the trade. Due to the tax savings in Texas I came out even.
2006-10-20 07:51:05 · answer #8 · answered by gc_manager 2 · 1⤊ 0⤋
a new car will stay longer than a used one. You will know what needs to be done with it and it will not break in the middle of the roads. Beside you get some statue from having a car.
2006-10-20 07:47:40 · answer #9 · answered by mab 2 · 0⤊ 0⤋
Oh baby! You asked a very keen question...they depreciate like hell and will keep at the shop most of its, if not your's, life! I guess they consider them to be investments because you have to be sure of what you're buying when you plop that wad 'o cash or check down on that table....
car dealers/salesmen SUCK!!
2006-10-20 07:38:20 · answer #10 · answered by incognitas8 4 · 0⤊ 1⤋