Don’t you love to own your dream car?
Like a home, owning a car is also close to many middle class people especially young professionals.
But the sad part is that most of them believe that the car which they buy, is an asset for them.
Like your home many eyebrows are up when we say, your car is also not an asset but a liability.
Let us see how?
Why a car is a liability?
In any market, a new car’s market value loses 10-20% in the first month itself. And from then on value diminishes gradually as the car becomes old.
The money will be regularly be going out of the owner’s pocket in the form of car loan EMIs, fuel cost, road taxes, insurances, tolls, maintenance etc..
As people uses car for their own transport and not for doing any business, car doesn’t give any money to your pocket. The person who buys a car spending all his savings, actually end with a liability of a much lesser value after a few years.
We are not suggesting that you never buy a car in your life.
But advising you to not buy a car spending all your savings or thru bank loan. You need to make good assets which in turn can give money to buy and maintain your dream car.
So from today onwards use your money and brain to make good assets .
All the best!