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

If your mechanically inclined and don’t mind putting a little time into it this is a fantastic plan. I typically get 20 years out of a car this way. If you have a family like me it’s also a good idea to make sure one car is still in the newer half of its life for road trips (just in case). It really eases your budget if you have long stretches without any car payments. If your not at all mechanically inclined this can be a bit riskier.