Doesn’t factoring depreciation into the cost of car ownership rely on the assumption that you will eventually sell that car? If so, why is that a reasonable assumption?

Question

Recently watched [this video](https://www.youtube.com/watch?v=ztHZj6QNlkM) which puts a significant chunk of the cost of owning the vehicle into depreciation. Wouldn’t the loss in value of the vehicle only matter to me if I bought this car with the intent to sell it in the future? I *could* drive the car until the engine block falls apart and it becomes basically unsellable.

In: 2782

Answer 1

I think a lot of people simply look at property ownership through a lens of investment. They don’t buy to own. They buy to flip for growth and profit, i.e., scalp.

But for example I bought a new car six years ago for about $26,000 (final price with interest included). It’s currently worth $20,000 and I own it outright. Even if I wanted to resell right now, $6k ‘depreciation’ to me just means I got to drive a new car for $1k/yr. I call that a win. Someone who looks at property ownership through a lens of investment would call it a loss. But I think that perspective is cancerous.