Author Topic: Car Value Vs Net Worth  (Read 17132 times)

acepedro45

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Car Value Vs Net Worth
« on: March 18, 2015, 10:44:03 AM »
I have always taken a secret satisfaction in the contrast between my net worth and the pittance that my car is worth. In my circle of acquaintances I doubt I could find a single person with a higher net worth AND a less expensive car than I drive. But among Mustachians, I bet many of you can beat me! Try to top this:

Net worth: $350k
Car Blue Book Value:  $1900 for a 2003 Chevy Cavalier with 117k miles. Wifey and I share this elderly but reliable workhorse.

Who can show me a fatter wallet and a more beat ride? Post your score even if you can't top the winner.

Note that there is a relationship between having a low-cost, non-flashy mode of transport and a thick wallet in one's pocket. Its derivation is left as an exercise for the reader.
« Last Edit: March 18, 2015, 10:50:15 AM by acepedro45 »

larmando

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Re: Car Value Vs Net Worth
« Reply #1 on: March 18, 2015, 11:23:53 AM »
Easy: net worth: quite a bit more, car value: 0 (no car). Bike value: maybe 200€? :)

PindyStache

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Re: Car Value Vs Net Worth
« Reply #2 on: March 18, 2015, 07:33:16 PM »
Well, Larmando has us beat, but my NW:car value is in the ballpark with you Acepedro:

NW ~$650k
Car Blue Book Value ~$4500 - a 2004 Toyota Matrix w/122k miles, also the only shared car for my family

And my bike is probably worth ~275 euro too for what that is worth!

danny9m

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Re: Car Value Vs Net Worth
« Reply #3 on: March 18, 2015, 08:24:09 PM »
Chevy cavalier a workhorse?  My wife had a Pontiac sunbird and I remember missing a ski weekend because it broke down on the side of route 18 in NJ with a busted timing belt and that was the third one she had to replace. Hey if your works for you great but there are a lot of red dots


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danny9m

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Re: Car Value Vs Net Worth
« Reply #4 on: March 18, 2015, 08:24:50 PM »
In consumer reports for that model.


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2Birds1Stone

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Re: Car Value Vs Net Worth
« Reply #5 on: March 19, 2015, 07:46:09 AM »
Net Worth - $114k
Investments - $92k
KBB Car Value - $4k

However I have only been at this for 4 years.

NotJen

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Re: Car Value Vs Net Worth
« Reply #6 on: March 19, 2015, 08:17:14 AM »
NW = $440k (as of first of month)
KBB = $16k (this seems ridiculously high, as I bought new for $17.5k OOP 2.5 years ago)

So, my "luxury" ride is 3.6% of my net worth. That percentage should drop pretty steeply over the next few years.
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Re: Car Value Vs Net Worth
« Reply #7 on: March 19, 2015, 09:34:10 AM »
Our combined net worth: Around $140,000

Our combined transportation value: around $130, $90 for his bike and $40 for mine. I'll probably be upgrading to a $250 bike some time though, because mine is a piece of junk.
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Jon_Snow

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Re: Car Value Vs Net Worth
« Reply #8 on: March 19, 2015, 09:55:49 AM »
I suspect I've got you all beat.

My 15 year old truck is about 0.16% of my NW.
« Last Edit: March 19, 2015, 10:01:05 AM by Jon_Snow »

arebelspy

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Re: Car Value Vs Net Worth
« Reply #9 on: March 19, 2015, 10:15:12 AM »
There should be some norms around this to compare to, rather than just guessing at car values (and probably norms around how to calculate net worth - oh boy that's a can of worms :) ).  And it should probably total up all vehicles you own as a percent of NW (i.e. if you have two cars, you should add those values together).

(And people who don't have any vehicles except bikes just flat out win.)

Using: http://www.kbb.com/whats-my-car-worth/  (And choosing the "sell to private party" and not "trade in to dealer" option) and the above parameters, our car is worth about 0.33% of our net worth.
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Re: Car Value Vs Net Worth
« Reply #10 on: March 19, 2015, 01:47:59 PM »
(And people who don't have any vehicles except bikes just flat out win.)
I don't think so - what about all those people with bikes that are worth thousands of dollars?

You should add up the costs of all modes of transport - cars, bikes, scooters, roller blades, skis, surf boards, boats... If you have bought clothes that are only worn when you are engaged in that mode of transport, the value of these should also be included (eg. gold studded bike helmet)

arebelspy

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Re: Car Value Vs Net Worth
« Reply #11 on: March 19, 2015, 01:51:22 PM »
(And people who don't have any vehicles except bikes just flat out win.)
I don't think so - what about all those people with bikes that are worth thousands of dollars?

You should add up the costs of all modes of transport - cars, bikes, scooters, roller blades, skis, surf boards, boats... If you have bought clothes that are only worn when you are engaged in that mode of transport, the value of these should also be included (eg. gold studded bike helmet)

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NoraLenderbee

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Re: Car Value Vs Net Worth
« Reply #12 on: March 19, 2015, 02:55:58 PM »
We're an exploding volcano of wastefulness with two late 90s cars, plus we had to replace our 21-year-old truck (it was totaled) with a spendypants 10-year-old clown pickup. All three vehicles amount to $9829 (KBB). NW excluding house is about 1.2 million, so our cars are about 0.81% of our NW. Punch me now.

jmusic

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Re: Car Value Vs Net Worth
« Reply #13 on: March 19, 2015, 04:16:40 PM »
(And people who don't have any vehicles except bikes just flat out win.)
I don't think so - what about all those people with bikes that are worth thousands of dollars?

You should add up the costs of all modes of transport - cars, bikes, scooters, roller blades, skis, surf boards, boats... If you have bought clothes that are only worn when you are engaged in that mode of transport, the value of these should also be included (eg. gold studded bike helmet)

You're getting pretty far into semantics now...  That said, most of this gear that you mentioned is not actually used for "transport" but for "exercise/entertainment."

That said, I have a net worth of $60K and my car is worth $6500.  My two bikes are worth $3500, and probably have another $750 in bike-related gear.  However, this time last year, I had the same bike inventory, a $20K car with a $21K payoff, and a total net worth around $15K.  I think I've made some progress!

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Re: Car Value Vs Net Worth
« Reply #14 on: March 19, 2015, 05:18:27 PM »
According to KBB, and converting everything to USD.. 0.29%

BUT we're about to spend another... urgh... 0.22% on a second car! Which makes us SUPER FLASHY.
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Stackfault

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Re: Car Value Vs Net Worth
« Reply #15 on: March 19, 2015, 09:05:31 PM »
Our two cars combined are 0.89% of net worth.   
I'm actually surprised it's that high and it's clearly not winning any prizes on this forum.

Fun question!  Thanks for posting that.

2Birds1Stone

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Re: Car Value Vs Net Worth
« Reply #16 on: March 20, 2015, 07:09:23 AM »
There should be some norms around this to compare to, rather than just guessing at car values (and probably norms around how to calculate net worth - oh boy that's a can of worms :) ).  And it should probably total up all vehicles you own as a percent of NW (i.e. if you have two cars, you should add those values together).

(And people who don't have any vehicles except bikes just flat out win.)

Using: http://www.kbb.com/whats-my-car-worth/  (And choosing the "sell to private party" and not "trade in to dealer" option) and the above parameters, our car is worth about 0.33% of our net worth.

Doing it like this, between my car and my motorcycle

9.3% of my net worth tied to vehicles =(

steveo

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Re: Car Value Vs Net Worth
« Reply #17 on: March 22, 2015, 12:10:56 AM »
My net worth would be about $1 million and my car would be worth say $5k. I'm scamming this a little though because my wife's car would be worth say $20k.

Workinghard

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Re: Car Value Vs Net Worth
« Reply #18 on: March 22, 2015, 04:12:00 AM »
Our combined NW, not counting cars (lol), a little over 1m. My car about $2700. Trade in $2k. My husbands car $1200. Trade in $900.   Glad you asked before we replace one of the vehicles next year!

FOBStash

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Re: Car Value Vs Net Worth
« Reply #19 on: March 22, 2015, 04:22:42 AM »
KBB - .53% of our net worth. Reliable Camry Hybrid.
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arebelspy

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Re: Car Value Vs Net Worth
« Reply #20 on: March 22, 2015, 08:13:31 AM »
Just realized anyone with a vehicle w/ a negative net worth does not compute very well.  I guess that's why they call it a hair on fire emergency.  :P
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gaja

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Re: Car Value Vs Net Worth
« Reply #21 on: March 22, 2015, 08:23:54 AM »
Kelley blue book doesn't really work outside the US. We have an old Mercedes E-series with 300 000 km. Local value is ca $2000, according to the link above it is with less than $1000. All bikes included (aldri children's) our vehicle to net worth (including home), is almost 2%.
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gomike

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Re: Car Value Vs Net Worth
« Reply #22 on: March 22, 2015, 09:11:18 AM »
Net worth: 300k

Car 1 2005 Honda Civic $4200, paid $4400 1 year ago, no repairs needed to date.
Car 2 2002 Toyota Sienna $4400 paid $5800 5 years ago, $130 in repairs to date

In general my theory is to buy a 10 year old reliable car and drive it for 10 years.

acepedro45

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Re: Car Value Vs Net Worth
« Reply #23 on: March 22, 2015, 09:06:42 PM »
Quote
Chevy cavalier a workhorse?  My wife had a Pontiac sunbird and I remember missing a ski weekend because it broke down on the side of route 18 in NJ with a busted timing belt and that was the third one she had to replace. Hey if your works for you great

We have been lucky with our Chevy. Statistically, Danny9m is right and the model generally doesn't hold up well in terms of reliability, resale value and maintenance costs. Our own experience has defied the odds, though. We just got back from a road trip to NYC and averaged 31 mpg.

Since many posters have expressed their net worth to car comparisons as a more polite and discrete ratio rather than the actual dollar amounts, I thought I'd add mine for those who are too lazy to do that math: 0.54%. I commend all of you below 1% in a society that exalts conspicuous consumption!


 
« Last Edit: March 22, 2015, 09:12:51 PM by acepedro45 »

johnny847

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Re: Car Value Vs Net Worth
« Reply #24 on: March 22, 2015, 09:34:28 PM »
Using the KBB value, 4%.

I got the car for free from my parents though. And I've only spent $57.34 on car related expenses since I got it, but I will be replacing the car battery for about $85 probably this week, maybe next.

GuitarBrian

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Re: Car Value Vs Net Worth
« Reply #25 on: March 22, 2015, 10:32:27 PM »
NW $260k

Truck, KBB says $3100.

so total about 1.2%.

But I have a camper on the back, which I live in. Add that ($2000 maybe less, it is old) but I don't maintain a house. All my property is rented out.
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Vehicles/NW
« Reply #26 on: March 23, 2015, 03:20:56 AM »
Counting 5 (!) cars, a motorcycle, and 8 (I think) bicycles, ~4%.
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clarkfan1979

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Re: Car Value Vs Net Worth
« Reply #27 on: March 23, 2015, 05:51:52 AM »
My car: 2003 Pontiac Vibe with 173,000 miles ($2,200)
Wife car: 2007 Honda CRV with 125,000 miles ($7,800)
Total Car: $10,000

Net worth: $276,000

Car/Net worth ration = 3.6%

The current plan is to hold on to each car for at least another 3 years.


boarder42

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Re: Car Value Vs Net Worth
« Reply #28 on: March 23, 2015, 12:01:20 PM »
networth = 370k
Cars = 20k

5.4% ratio

ohyonghao

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Re: Car Value Vs Net Worth
« Reply #29 on: March 23, 2015, 12:58:11 PM »
We are also at around 4%.

5 Series BMW: $3,693
Net Worth: ~$93,000

It's funny that KBK say my car should only get 21mpg combined, my data from the last 3 years I've owned the car is averaging 25.8mpg, and routinely I get 30+mpg during the summer.

Originally bought the car before MMM for $8,000 with 131k miles.  After 1.5 years of a 60mi a day commute we moved to within a 5 mile radius of everything and in the 1.5 years since then we've gone from 161k to 166k on the car.  Can hardly believe before I had engineered a life which would put 15,600 miles annually just to get to work.

My fleet of bikes were bought for $1,000, $600, $29, $0, and $130 for the trailer, so about $1,759.  If included that brings me down to 5.6%.
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bigalsmith101

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Re: Car Value Vs Net Worth
« Reply #30 on: March 23, 2015, 08:46:17 PM »
Net worth? Somewhere around $3k.

Total Vehicle Worth?
1997 Grand Marquis $2,200
1998 Dodge Stratus  $1,100
1974 Suzuki Moto     $750
2006 Yahama Scoot  $1250
2003 Honda Scooter $1700
2002 Honda Scooter $1200
Total Value               $8,200

Ratio? -273% BWAHAHAHAHAHAHAHAHAH

We just bought the Honda Scooters for $2200 (picked up a bit of equity), and use them as our primary form of transport at 65mpg+.

We most definitely don't need this ridiculous assortment of 6 vehicles though.

What is the solution to this egregious lack of self control? The 2006 Yamaha Scoot goes up for sale at the end of the month. The OLD Suzuki Motorcycle goes up for sale along with it. Very possibly, the 1998 Dodge Stratus goes with it. Leaving up with the Grand Marquis (the land yacht) and two Honda Scooters.

We're new to the bandwagon. By January of 2015, the ratio will be down to 11.75%, and the following year it'll be down to 5% or so.

I'm still laughing though. -273%! What the F*&%!!!

« Last Edit: March 23, 2015, 08:50:43 PM by bigalsmith101 »
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johnny847

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Re: Car Value Vs Net Worth
« Reply #31 on: March 24, 2015, 12:11:23 AM »
Net worth? Somewhere around $3k.

Total Vehicle Worth?
1997 Grand Marquis $2,200
1998 Dodge Stratus  $1,100
1974 Suzuki Moto     $750
2006 Yahama Scoot  $1250
2003 Honda Scooter $1700
2002 Honda Scooter $1200
Total Value               $8,200

Ratio? -273% BWAHAHAHAHAHAHAHAHAH

We just bought the Honda Scooters for $2200 (picked up a bit of equity), and use them as our primary form of transport at 65mpg+.

We most definitely don't need this ridiculous assortment of 6 vehicles though.

What is the solution to this egregious lack of self control? The 2006 Yamaha Scoot goes up for sale at the end of the month. The OLD Suzuki Motorcycle goes up for sale along with it. Very possibly, the 1998 Dodge Stratus goes with it. Leaving up with the Grand Marquis (the land yacht) and two Honda Scooters.

We're new to the bandwagon. By January of 2015, the ratio will be down to 11.75%, and the following year it'll be down to 5% or so.

I'm still laughing though. -273%! What the F*&%!!!

Why is this negative exactly? 8200/3000 = 273%.

If your net worth was negative $3k, then you'd be at -273%.

RetiredAt63

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Re: Car Value Vs Net Worth
« Reply #32 on: March 24, 2015, 06:53:27 AM »
Car value estimated by looking at similar ones on Kijiji, net worth also a guess (pension value estimated by cost of an annuity that would produce that income) - I am at about 0.015%.

I didn't count the bicycle, it is not worth a lot and it is purely for fun. No way I am cycling on 2 lane highways with narrow shoulders where 80 and 90 km speed limits are treated as suggestions.
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UnleashHell

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Re: Car Value Vs Net Worth
« Reply #33 on: March 24, 2015, 08:49:35 AM »
2 cars - each about .6%  of net worth
7 bikes.... probably not far behind.....

my garage is for bikes...
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Bob W

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Re: Car Value Vs Net Worth
« Reply #34 on: March 24, 2015, 09:55:34 AM »
Interesting thread --- I have a theory that a person should buy a car of no more value that 10% of their annual income.   That doesn't cover folks with high net worth  of course.      So a two income family making 80K might shoot for 8K in total car value and of course pay cash.   I see far too many folks starting out that go for the 30K car with the $400 monthly payment, huge insurance and super depreciation. 

Still want to brag a little though as our 01 Camry just passed 390K.   Shooting for 500K.
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Re: Car Value Vs Net Worth
« Reply #35 on: March 24, 2015, 01:55:24 PM »
Net worth? Somewhere around $3k.

Total Vehicle Worth?
1997 Grand Marquis $2,200
1998 Dodge Stratus  $1,100
1974 Suzuki Moto     $750
2006 Yahama Scoot  $1250
2003 Honda Scooter $1700
2002 Honda Scooter $1200
Total Value               $8,200

Ratio? -273% BWAHAHAHAHAHAHAHAHAH

We just bought the Honda Scooters for $2200 (picked up a bit of equity), and use them as our primary form of transport at 65mpg+.

We most definitely don't need this ridiculous assortment of 6 vehicles though.

What is the solution to this egregious lack of self control? The 2006 Yamaha Scoot goes up for sale at the end of the month. The OLD Suzuki Motorcycle goes up for sale along with it. Very possibly, the 1998 Dodge Stratus goes with it. Leaving up with the Grand Marquis (the land yacht) and two Honda Scooters.

We're new to the bandwagon. By January of 2015, the ratio will be down to 11.75%, and the following year it'll be down to 5% or so.

I'm still laughing though. -273%! What the F*&%!!!

Why is this negative exactly? 8200/3000 = 273%.

If your net worth was negative $3k, then you'd be at -273%.

It's negative because I'm a spaz.

Upon Redoing the math, my vehicles represent 73.2% of my net worth. Come January that number will be closer to 12.75%, and the following year closer to 5%
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trailrated

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Re: Car Value Vs Net Worth
« Reply #36 on: March 24, 2015, 02:21:04 PM »
NW     ~$70K
KBB      $6,500

9.3%... working on building the stache
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Apples

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Re: Car Value Vs Net Worth
« Reply #37 on: March 24, 2015, 02:25:40 PM »
Our car is 8.3% of our net worth.  My (bought brand new) truck is owned by the family business and my Dad chose it, so I don't count it.  Our car is the car my parents bought for me at 18, with the agreement that I would buy it from them when I got into the "real world".  I've now owned it a year, and I have driven it for 5 years.  110,000 miles.  My husband was putting a killer 120 mi/day commute on it, but now it's down to 40/day!  Woohoo! (No, we won't be moving and he won't get closer-this is one of the cons of living on a farm not near a city that the other person can work in).

The next car we buy will probably be about 5-8% of net worth, then drop in value from there.

Most of my friends have vehicles they either own outright since 16 or bought brand new with payments two years ago at graduation.

Tailrated we're close to your numbers!

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Re: Car Value Vs Net Worth
« Reply #38 on: March 31, 2015, 10:42:10 AM »
I never understood why people think "Oh, expensive car--they must be rich". I think "Oh, expensive car--they are much less rich than they used to be".

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Re: Car Value Vs Net Worth
« Reply #39 on: March 31, 2015, 03:11:29 PM »
Proud to announce that my car's blue book value is .52% of my net worth. 

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Re: Car Value Vs Net Worth
« Reply #40 on: March 31, 2015, 03:15:57 PM »
I have no car and no bike. Net worth in the high hundreds of thousands.

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Re: Car Value Vs Net Worth
« Reply #41 on: March 31, 2015, 05:37:53 PM »
2.2M net worth versus 24,500 in cars KBB value: .01 ratio
Totally inspired by this site and you mustachians.

WerKater

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Re: Car Value Vs Net Worth
« Reply #42 on: April 01, 2015, 10:07:11 AM »
My girlfriend and I own one car together.
It is about 4% of our combined net worth. That's a little high. But our current combined saving rate would pay for it in a little under two months.

My roadbike is about 0.8% of my net worth.
My 15 year old mountainbike (given to me by my parents for my 16th birthday) is probably a roughly estimated 0.0% of my net worth. And it is still my favourite vehicle :-)
« Last Edit: April 01, 2015, 10:10:36 AM by WerKater »

bryan

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Re: Car Value Vs Net Worth
« Reply #43 on: April 01, 2015, 10:37:00 AM »
Current vehicle is worth around $14k. I feel okay about that because I live in it and it helps me save on rent, bills, and other costs.

Previous car cost me ~$1400, sold for ~$800 after a couple years.

Car before that cost $500, sold for ~$1200 after about 8 years.

Big fan of junkers for less than $2k.

Paul der Krake

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Re: Car Value Vs Net Worth
« Reply #44 on: April 01, 2015, 10:46:45 AM »
My car is so cheap that it doesn't matter that the county's value estimate is too high, I'm already paying the absolute minimum tax possible. They probably lose money processing the form each year.

zephyr911

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Re: Car Value Vs Net Worth
« Reply #45 on: April 02, 2015, 02:59:32 PM »
Hahahahahaha... I shouldn't have come here. I feel a facepunch coming!
$230K and about $30K (2010 Prius and 2012 Volt) = ~13%. Rapidly depreciating 30k too.
I have a thing for electric transport. I'm running close to 20k miles per year, mostly for side jobs that I can't bike to, and I like doing 90% of that on electricity (local power equates to 75-cent gas and sources are fairly clean). Fuel savings roughly offset the early-adopter depreciation curve. So, there's that.
Anyway, between $4-5k/mo savings and continued depreciation, this ratio won't last long. And a one-car family is feasible within a year. Thanks for the inspiration! :D
Semi-FIREd December 2017, part-time entrepreneur, lover of puppies and saltwater.

ToeInTheWater

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Re: Car Value Vs Net Worth
« Reply #46 on: April 02, 2015, 03:19:53 PM »
we have 2 vehicles, both about 10 yrs old

our ratio is about 100/1, or about half the OP

b

Heywood57

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Re: Car Value Vs Net Worth
« Reply #47 on: April 02, 2015, 04:54:02 PM »
kbb.com only goes back to 1992 so I had to guess the value of my 1990 Toyota,
which worked out to 0.081% of NW

GoingConcern

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Re: Car Value Vs Net Worth
« Reply #48 on: April 02, 2015, 05:14:29 PM »
Net Worth $325 (Including the Cars)
Car Value Around $20k
Around 6.1%

Not as good as some of you here, but I was gifted one of the cars and the other one we paid $11,500 for in cash a few years ago.  We are in our mid 20s and hope to keep the cars for a while. 

greenmimama

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Re: Car Value Vs Net Worth
« Reply #49 on: April 03, 2015, 10:41:39 AM »
I wonder what the average is for Americans?

Net worth ish: $350

Both cars added up in KBB: $12,500

We actually own a 2010 Vibe which really kicks it up there :)  the other is a 2003 Honda Odyssey, hope to drive it for awhile yet. The vibe has held it's value pretty well, we bought it 2 years ago for 9,900 and it is still Private party worth 9,298  not too bad.

Good to know, before that we had a 98 Subaru.