Originally posted by mercman:


Look up the definition of ??investment? you will see that a car is defiantly not an investment since it will depreciate in value over time, it will always be a loss...

jeff




I think we're just arguing semantics here, but
according to my Webster's Universal Unabridged Dictionary, "investment" is variously defined as "the laying out of money in the purchase of some species of property" and "[t]he property in which one invests".

"Invest" is defined as "[t]o lay out, as money in the purchase of some kind of property, usually of a permanent nature".

So I would most definitely consider a car to be an "investment." Definitions aside, I think that for most people, the purchase of a car is an extremely important decision involving the allocation of limited resources. For most people, the purchase of a sensible economical and reliable car is just about the best financial decision they will ever make. I deal a lot with bankrutpcy and cannot even begin to count the number of people driven into bankruptcy by buying a car that they cannot afford to pay for, maintain or drive. (SUV's are particularly popular among people scraping by living paycheck to paycheck).

Me: "Your rent is only $350.00 a month and you barely make enough to cover that. Why would you want to be locked into paying upwards of $500 a month for a new car?"

Them: I need an SUV. I sometimes have to drive to work when its snowing. Plus I like to sit up high and minivans don't suit my image.

Me: What kind of SUV are you thinking about getting?

Them: A green one.