For most of us, cars the most expensive toys we have as adults.
The problem is that from a financial point of view, they're not the best asset to purchase, since the moment you pick up a new car from the dealership they're going to lose value fast.
However, for the last 30 years I've allowed myself the luxury of owning nice cars - I enjoy my cars and recognise they are an expense, not an asset.
Some statistics on how quickly cars lose their value:
- Depreciation - is the highest single cost involved in owning a car.
- Nearly half of all new-car buyers will tear up at least $20,000 in the first four years of ownership, a Drive.com.au depreciation survey reveals.
Resale by vehicle type
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|Category||Average resale value after 4 years|
Source: Glass's Guide
Absolute Reg, a British site produced this interesting infographic showing which luxury cars hold their values the best
Now you can see how the other half spend (lose) their money.