My car still has value
I don't consider buying a new car to be an investment. It doesn't make sense to think of it that way, because it's not an asset that has the possibility of appreciating. Yes, if you buy an expensive car, you can later sell it for more money than you could a cheaper car, but the same can be said for a
pair of boots.
I simply think of my car as part of my Stuff. Sure, I kind of need it, and it's worth more than most of my other Stuff, but the bottom line is, I bought it to be used, not to watch its value increase. Thus, wouldn't I want to get as much out of my money as possible?
While I don't think of cars as investments, they also aren't like the rest of our Stuff; usually, they're a lot more expensive to replace. In an age when cellphones and computers are always upgraded, I feel like it's easy to believe your vehicle needs an upgrade, too. I'm surprised at how many people say it's “time for a new car” simply because they haven't had a new car in a while. That's a costly treat. Though some would argue upgrading a perfectly usable phone is a costly treat, too.
But what if you're a gazillionaire?
“But if you're a billionaire, why
just buy a new car? It would be
to you,” my friend argued.
I'd like to think that,
even if I had all the money in the world
, I'd still drive my little Corolla around town. I'd like to think a lot of things. But most likely, if I were a billionaire, the little dings and scratches on my car would probably start to bother me, as would the non-heated seat cushions.
No matter how much wealth I may build, I hope I never lose sight of value. Because to me, this argument is like saying, “Well, you have a lot of money, so why not throw a buck down the toilet?”