Why isn’t it treated similarly to a house?
In: 111
The moment you drive a car off the lot, it becomes secondhand. It’s a used car then. Its value goes down in that instant, and continues to go down as you drive it because things wear out with use, and cost money to replace or repair. The more you use a car, the closer it comes to its next expensive repair or maintenance, and the value of the car lowers accordingly as you get nearer to those expenses.
Houses can depreciate too. We’re just accustomed to housing prices going up, but there isn’t any rule saying this has to be the case.
Latest Answers