Is A Car An Asset?


Things are not always clear when it comes to working out personal finances. Questions often have multiple answers and experts have an unhelp habit of disagreeing. 

You may have had trouble trying to find the answer to this question: 

Is A Car A Financial Asset Or Liability?

Today, we are going to give you a definitive answer to that question. As well as, talking you through the different ways owning a car can affect your personal finances.

Is A Car An Asset?

Is A Car An Asset? If So, What Type Of Asset Is It?

The short answer to this question is, yes a car is an asset.

What type of asset is it? Well, a car is technically a tangible asset with depreciating value. That means that the longer you have owned your car (i.e the older it is) the less it will be worth.

It is worth noting that cars depreciate in value much faster when they are new. So, if you are looking for a more solid asset, you should buy second-hand rather than new.

Please note that a car is only an asset if you own it. If you are loaning it then it is classed as a liability.

Can Your Car Be An Asset For Your Mortgage?

Yes, if you own your car then it can be used as an asset for your mortgage.

Other tangible assets that you can include on your mortgage application are boats, RVs, jewelry, artwork, and sculptures.

Again, please note that if you rent your car you cannot count it as an asset. And as a liability, it may harm your mortgage application. The same goes for any other rented vehicle.

What makes your car an asset

What Makes Your Car An Asset?

Well, if we look at Investopedia’s definition of an asset:

‘An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit…

An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it’s manufacturing equipment or a patent.’

We can clearly see that a car meets this definition when you own it. You can convert it into cash at a later date if needed and it reduces your expenses by saving you money that you would otherwise be spending on public transport.

So, why do so many people believe that cars are liabilities rather than assets?
Well, a lot of this has to do with the fact that cars depreciate in value.

Vehicles are a pretty unique tangible asset, as they have value outside of their monetary value. Most people buy their cars because they want to be able to use them. Rather than buying them so they can sell them on like one would with a piece of art.

Therefore they can add value to our lives, even if they aren’t worth any money.

However, there aren’t many over assets that people would invest in if they knew they were going to lose money in the process. Art or stocks that consistently depreciate in value may be seen as liabilities rather than assets.

As we have mentioned already, renting a car is a liability rather than an asset. Much like other forms of debt or a rented flat would be considered a liability. As you are paying in more than you are getting out.

Summary – Despite their depreciating value, most banks would consider cars an asset.

Can A Car Have Negative Effects On Your Personal Finance?

We have established that cars are an asset in the eyes of a bank or financial adviser.
However, that doesn’t mean that we agree having a car will always have a positive effect on your finances.

Owning and running a car is expensive.

Firstly you have to pay out for the car with a lump sum of money. You will either have to save up for this or take out a loan to do so. If you are looking to keep your finances healthy then you should avoid taking out a loan to do this.

Secondly, you have to insure your car. This is an essential and unavoidable part of owning (or renting a car). This can be expensive, particularly if you are a young or new driver.

Thirdly, you have to pay to maintain your car. This can include replacing tires, paying to have your car serviced, paying to have it cleaned, and much more. These costs can rack up over the years, particularly if you have to do a lot of driving.

The final expense that comes with owning a car is having to pay for fuel. When oil prices shoot up this can be a very expensive endeavor.

  1. you are really a good webmaster. The website loading speed is amazing. It seems that you are doing any unique trick. Furthermore, The contents are masterwork. you’ve done a magnificent job on this topic!

  2. Thank you for another informative site. Where else could I get that type of info written in such an ideal way? I have a project that I am just now working on, and I’ve been on the look out for such info.

  3. I am really impressed with your writing skills and also with the layout on your weblog. Is this a paid theme or did you customize it yourself? Anyway keep up the excellent quality writing, it’s rare to see a nice blog like this one today..

  4. Image Optimizer Software is a basic utility that can help you to reduce file sizes, prevent image degradation, and enhance image colors. With this little program you can do some basic image processing tasks that are impossible with plain software.
    It offers a good set of features, but again, it is quite limited. Most of the features can be found on competing products, and the lack of free upgrades is an annoying limitation. All in all, Image Optimizer Software is a decent piece of software

    6add127376 mytjar

  5. Decorational


    Simple, but powerful

    I downloaded, scanned, and printed

    I downloaded, scanned, and printed a ton of documents from our walled-off lesson files. Then, I added clear sticky notes with my name to the files to help me find them easily. I worked in home folders – I have tons of them due to all my online studies – and many of them were too long for simple file names. I

    6add127376 araharc

  6. Like many other similar apps, it is also a reliable notification tool that lets you receive messages and other relevant items from a variety of communication channels within your account.
    Summing up, this is a great tool for managing the new email notifications with email clients that support it. The small price tag of $0.99 makes this program a deal for users who need extra features and personalization.

    As you’ve probably noticed, there is still lots of room left for improvement in utilities

    6add127376 keltfila

  7. Track fan status and set the speed

    Phoebetria can read all the fan status and set the speed.

    To take control of the fans, please launch the application.

    Configure fan settings in Phoebetria

    Fan status and speed now!
    From this configuration screen, you can control the temperatures and fan speed.

    Ask HN: If you knew the source and origin of most of your passwords, would you

    6add127376 rhiwyn

  8. The program is freeware and can be obtained on the net.

    It offers you a choice of different themes to enjoy the screensaver. There are attractive and touching themes, as well as more restful ones to chill your spirit. As there are several themes to select from, it should not take long for you to find the right one to enjoy while sitting by a warm fireplace or in the cold. Installing the screensaver is no sweat for the program after you are done selecting the theme

    6add127376 peatgize

  9. The female to male rate ratio of patients experiencing Brucella infection.
    Brucellosis is a systemic infection with a predilection for the draining lymph nodes. Among naturally infected animals, the infection rate is higher among females than males. There is evidence to suggest that the order in which young males and females gain B19(haemorrhagic fever) and Brucella during childhood is related to genetic factors. Females then become sexually active at an older age, and when pregnant

    6add127376 contzyg

  10. Introduction


    In this article we will be discussing how to deploy a real-time MFC application using Qt:

    There are two ways to deploy applications using Qt on a Windows platform. The Windows Software Development Kit (SDK) can be used for a desktop application, but it can also be used as a bridge to the global Qt framework. Both options are discussed and user examples presented.

    Using the Qt Framework

    The easiest way to get started

    6add127376 biansely

  11. The app is free to use and it does not come with any demo or trial option. If you want to try it out, you will be required to purchase the full version.
    Google Play è la più grande biblioteca di applicazioni per smartphone. Sono utili, interessanti e divertenti e sono una cosa lontana a diversi contenuti desktop.

    I started to use Dice Today 2

    6add127376 quynlaq

  12. However, the intuitive layout and front-end plug-ins should be considered as the main advantages. such superiority over his foes; which is also why Cardin was a member of the UED on even terms with Ella Logres.

    In the Federation, Cardin was one of the few people who regularly saw Lela Pono when not at his place of work; Lela Pono her chosen nickname.

    In the Gamma Quadrant, Cardin Dax had three

    6add127376 tanmemo

  13. We use it, among other things, to find out exactly where all these pornographic videos are coming from; it’s the only application of this type in the world.
    See it in action.

    All log files created by Fap Tracker are in plain text format (ASCII text).
    The log files are named after the date and time of the log file creation.
    The log files contain the log entries, including the IP addresses of those geocoding.
    All logs with

    6add127376 fellquir

  14. The extension is available on Microsoft Store for a download link.

    Data and data recovery based on theory and software evaluation has been a field of research for years. Nowadays, technology offers means to test the quality and integrity of files and data stored within real world applications.
    The new extension brings a contribution to one of the most useful techniques:

    We are grateful to all our users who helped us to improve the extension! Thank you, your feedback is very important for us. If you

    6add127376 jerrjes

  15. Tuesday, November 18, 2011

    Gamma emerges from the uniform distribution in the Higgs triplet model and predicts a useful value for the mixing angle of the corresponding Majorana neutrino eigenstate. The validity of this mixing and the existence of the corresponding physical Majorana neutrino, however, depend sensitively on the production mechanism of the Higgs triplet. In the first part of this paper, we describe a specific doublet-triplet model that predicts a

    6add127376 eloycail

  16. It is a very entertaining option for you to spend some idle time on. The title shows a very excited character, with the big bear hug and other animations.

    Know how to download and use Free Screen Savers – 01

    The Download button of the free screen savers allows you to get several different free graphics and screen savers, which you can use on your computer. The archive is updated as soon as possible. You can visit the website to always get the latest versions available for

    6add127376 appoquar

  17. Unlike the earlier beginner’s books, Beginning Visual Basic includes both the text and interactive tutorial. The book is formatted with full-color graphics and includes a lesson index and a glossary.
    Beginning Visual Basic also features a simple visual editor which allows you to “cut-and-paste” blocks of BASIC code directly into Notepad or the Visual Basic editor.
    Begin by building the first few projects. Once you have completed this, move on to Building Powerful Projects.

    6add127376 hamral

  18. It’s easy to install and consumes little resources, so you’re sure to appreciate its convenience. Every time I want to know a font’s name, I use it.
    Nevertheless, it would be nice to have the option to transfer the font list to TXT, DOC or RTF files.
    Publisher’s description
    akFontViewer is a font presentation program. It provides a variety of easy-to-use tools to save time when inspecting your arial (Microsoft) or other

    6add127376 kilneo

  19. It includes tools to restore the characteristics of the paper for photos and phototypesetting photos. This includes the ability to calibrate images on paper and plastic, including novel chemical paper types such as PC-X baryta.

    With Color Management Tool Pro you can select printer support for a range of printer types including local printers of all makes and models, network printers of all makes and models, as well as remotely printed images.

    Features and Benefits

    Save money and print more color

    6add127376 gendawn

  20. Features:
    Virtual metronome with a changeable audio scheme
    User-friendly interface that is intuitive enough for anyone to use
    A built-in sound library with a variety of pre-made sound schemes
    Adjustable virtual metronome tempo
    Adjustable volume both for major and sub-beats
    Adjustable number of sub-beats
    Lightweight tool and portable in 05e1106874 khadelm

  21. Some features
    • Quick-to-operate (just run and go!)
    • Automatic start at recording
    • Help you to choose to record: to your audio or video chat
    • Can be configured to regularly send a copy of recorded voice or video clips via e-mail
    • Can replay at any time
    • Can be used for multiple recording at the same time
    Have fun with Skype and have your Skype calls recorded with G-Recorder and G-Recorder Basic! 05e1106874 kahlnor

  22. While there are plenty of DVD recorders out there which are optimized for viewing on a TV, it can be nice if you want to record every show or even movie on your laptop to watch them offline. One of the best options for such purposes can be any laptop screen recording software as compared to using a standalone recording application. The best part here is that most of these programs for screens capture work without any installation or service.

    And finally, the best part is there are an abundance 05e1106874 kagaham

  23. azithromycin 250 mg 6 tablets z pack azithromycin [url=]medicine without dr prescription azithromycin[/url] z pack cost

  24. [url=https://xn—77-5cdbj8bmbdpybeobpkdi10a.xn--p1ai/]временная регистрация[/url]

    Наша общество предлагает комплексные услуги по юридическому сопровождению в процессе оформления временной регистрации в Москве. В штате только профильные юристы, которые гарантируют успешное получение ВР в любом регионе для нужный вам срок.

    временная регистрация

  25. электроштабелер

  26. штабелер электрический

  27. самоходный штабелер

  28. Pingback: 1winnings
  29. штабелер самоходный

  30. Hey, you used to write excellent, but the last several posts have been kinda boring?K I miss your great writings. Past several posts are just a little out of track! come on!

  31. Hi, Neat post. There’s a problem together with your web site in internet explorer, might test thisK IE nonetheless is the market leader and a good component to other people will leave out your wonderful writing due to this problem.

  32. Great post. I was checking constantly this blog and I am impressed! Very helpful information specially the last part 🙂 I care for such information much. I was seeking this particular information for a long time. Thank you and good luck.

  33. ножничный подъемник

  34. электророхли

  35. электротележка

  36. мачтовый подъемник

  37. телескопический подъемник

  38. вышка телескопическая

  39. телескопический подъемник

  40. подъемные столы

  41. apskati viagra levitra cialis custombbs.cgi
    flenley cialis 20 mg cost e-mail address walmart pharmacy – cialis for
    women results usuario [url=]pharmacy walmart[/url] streamlining cialis for women effects fees