The Money Mustache Community

General Discussion => Throw Down the Gauntlet => Topic started by: acepedro45 on March 18, 2015, 10:44:03 AM

Title: Car Value Vs Net Worth
Post by: acepedro45 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.
Title: Re: Car Value Vs Net Worth
Post by: larmando on March 18, 2015, 11:23:53 AM
Easy: net worth: quite a bit more, car value: 0 (no car). Bike value: maybe 200€? :)
Title: Re: Car Value Vs Net Worth
Post by: PindyStache 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!
Title: Re: Car Value Vs Net Worth
Post by: danny9m 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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Title: Re: Car Value Vs Net Worth
Post by: danny9m on March 18, 2015, 08:24:50 PM
In consumer reports for that model.


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Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone 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.
Title: Re: Car Value Vs Net Worth
Post by: NotJen 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.
Title: Re: Car Value Vs Net Worth
Post by: Zikoris 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.
Title: Re: Car Value Vs Net Worth
Post by: Jon_Snow 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.
Title: Re: Car Value Vs Net Worth
Post by: arebelspy 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.
Title: Re: Car Value Vs Net Worth
Post by: deborah 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)
Title: Re: Car Value Vs Net Worth
Post by: arebelspy 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)

(http://media1.giphy.com/media/kS1aph1nPE1lm/giphy.gif)
Title: Re: Car Value Vs Net Worth
Post by: NoraLenderbee 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.
Title: Re: Car Value Vs Net Worth
Post by: jmusic 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!
Title: Re: Car Value Vs Net Worth
Post by: daverobev 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.
Title: Re: Car Value Vs Net Worth
Post by: Stackfault 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.
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone 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 =(
Title: Re: Car Value Vs Net Worth
Post by: steveo 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.
Title: Re: Car Value Vs Net Worth
Post by: Workinghard 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!
Title: Re: Car Value Vs Net Worth
Post by: FOBStash on March 22, 2015, 04:22:42 AM
KBB - .53% of our net worth. Reliable Camry Hybrid.
Title: Re: Car Value Vs Net Worth
Post by: arebelspy 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
Title: Re: Car Value Vs Net Worth
Post by: gaja 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%.
Title: Re: Car Value Vs Net Worth
Post by: gomike 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.
Title: Re: Car Value Vs Net Worth
Post by: acepedro45 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!


 
Title: Re: Car Value Vs Net Worth
Post by: johnny847 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.
Title: Re: Car Value Vs Net Worth
Post by: GuitarBrian 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.
Title: Vehicles/NW
Post by: kendallf on March 23, 2015, 03:20:56 AM
Counting 5 (!) cars, a motorcycle, and 8 (I think) bicycles, ~4%.
Title: Re: Car Value Vs Net Worth
Post by: clarkfan1979 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.

Title: Re: Car Value Vs Net Worth
Post by: boarder42 on March 23, 2015, 12:01:20 PM
networth = 370k
Cars = 20k

5.4% ratio
Title: Re: Car Value Vs Net Worth
Post by: ohyonghao 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%.
Title: Re: Car Value Vs Net Worth
Post by: bigalsmith101 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*&%!!!

Title: Re: Car Value Vs Net Worth
Post by: johnny847 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%.
Title: Re: Car Value Vs Net Worth
Post by: RetiredAt63 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.
Title: Re: Car Value Vs Net Worth
Post by: UnleashHell 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...
Title: Re: Car Value Vs Net Worth
Post by: Bob W 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.
Title: Re: Car Value Vs Net Worth
Post by: bigalsmith101 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%
Title: Re: Car Value Vs Net Worth
Post by: trailrated on March 24, 2015, 02:21:04 PM
NW     ~$70K
KBB      $6,500

9.3%... working on building the stache
Title: Re: Car Value Vs Net Worth
Post by: Apples 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!
Title: Re: Car Value Vs Net Worth
Post by: forummm 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".
Title: Re: Car Value Vs Net Worth
Post by: Bardo on March 31, 2015, 03:11:29 PM
Proud to announce that my car's blue book value is .52% of my net worth. 
Title: Re: Car Value Vs Net Worth
Post by: brooklynmoney on March 31, 2015, 03:15:57 PM
I have no car and no bike. Net worth in the high hundreds of thousands.
Title: Re: Car Value Vs Net Worth
Post by: Momsterstache 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.
Title: Re: Car Value Vs Net Worth
Post by: WerKater 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 :-)
Title: Re: Car Value Vs Net Worth
Post by: bryan 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.
Title: Re: Car Value Vs Net Worth
Post by: Paul der Krake 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.
Title: Re: Car Value Vs Net Worth
Post by: zephyr911 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
Title: Re: Car Value Vs Net Worth
Post by: ToeInTheWater 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
Title: Re: Car Value Vs Net Worth
Post by: Heywood57 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
Title: Re: Car Value Vs Net Worth
Post by: GoingConcern 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. 
Title: Re: Car Value Vs Net Worth
Post by: greenmimama 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.
Title: Re: Car Value Vs Net Worth
Post by: Davids on April 05, 2015, 07:39:19 AM
I have no car and no bike. Net worth in the high hundreds of thousands.
The only way to beat that would be to have no legs.
Title: Re: Car Value Vs Net Worth
Post by: My Own Advisor on April 07, 2015, 07:52:58 PM
2000 Mazda with 200,000 km.  Value?  Not very much.  My laptop is worth more.

Car is less than 1% of NW.  The way it should be :)
Title: Re: Car Value Vs Net Worth
Post by: jooles on May 21, 2015, 11:53:43 AM
Wow. Thanks for the wake-up call.  I drive a $2500.00 car, but unfortunately we own 4 cars (there's only 2 of us).  My hubs was dabbling in the used car business for a year.  That's how we ended up with a surplus of vehicles.

He and I each drive a $2,500 car that's less than 10 years old with less than 100k miles on it.  That's where we are comfortable.  It's clearly time to sell the other 2 cars!

Total car value as an expression of net worth = 3.2%.  Not terrible.  Could be better.

Once we sell the extra two cars this will be 1.8%.  Won't be downsizing vehicles from here, but doing SERIOUS work to get that Net Worth up and up and up...
Title: Re: Car Value Vs Net Worth
Post by: Gretamom on May 29, 2015, 09:58:50 PM
Net Worth = 500,000
car = 2003 Chrysler Town and Country with about 248,000 (I don't even look anymore!), rusty, and small amount of damage on the front driver's side, worth about $1000.
Frankly, it's a little embarrassing, but I just can't get a new car if I don't need one! 
Title: Re: Car Value Vs Net Worth
Post by: Bateaux on June 13, 2015, 04:55:50 AM
Net worth 1.6 Million.  Car is 2003 Dodge Ram Conversion Van.  Dodge 318 engine.  125,000 miles.  Worth $1500.  Maybe.  So less than 0.1% of Net Worth
Title: Re: Car Value Vs Net Worth
Post by: Elderwood17 on June 13, 2015, 08:34:59 PM
Right about 1.5% for us.  That will keep going down, hopefully, forever.
Title: Re: Car Value Vs Net Worth
Post by: sol on June 13, 2015, 09:27:35 PM
0.38 percent. Large net worth, and only one 2006 cheap vehicle.
Title: Re: Car Value Vs Net Worth
Post by: SnackDog on June 14, 2015, 03:13:00 AM
0 percent.  Sold our last car in 2012. Employer provides vehicle, insurance and fuel.

My guidance on vehicles is purchase price < 5% gross annual income.  Which for most of you should be < 1% of net worth (which is a function of age mostly).
Title: Re: Car Value Vs Net Worth
Post by: libertarian4321 on June 14, 2015, 04:22:55 AM
2002 Chevy Silverado.  Not sure of it's blue book value, maybe $3k?

Net worth somewhere north of $3,000,000.

But my wife ruins it with her extravagant lifestyle.  She drives a 5-6 year old Beemer.  I'm guessing it's worth $15k+
Title: Re: Car Value Vs Net Worth
Post by: Auldtriangle8 on June 23, 2015, 02:55:08 PM
Net worth $122k, 2005 Prius worth about $5k. I am selling (this week) a super face-punch anti-mustachian 1999 Pontiac Trans Am (though loads of fun to drive, and a manual with 28 mpg highway) worth about $3k. Going to one car family with me biking everyday and DW in the Prius.

Ratio before: 6.6%
Ratio after: 4%
Title: Re: Car Value Vs Net Worth
Post by: 27y/oTennesseeRetiree on June 23, 2015, 10:32:17 PM
Okay... so this may sound bad... but I am going to skew my ratio.  Currently it is about .62% but I am car shopping.  I was going to just mothball my current vehicle... a 2006 VW Jetta TDI with 325,000 miles.  I know that sounds crazy... please someone tell me that is crazy.  I guess you need to hear the whole story to make a recommendation.

I am shopping for a Dodge (or Freightliner, or Mercedes) Sprinter Cargo Van to convert to a stealth camper to travel full time around the United States and hopefully up into Canada and down into Central and South America in.  My budget for the entire conversion is about $15,000.  My takeoff date (hopefully) is August 15th.  My income is mostly passive and I feel like my expenses on the road will be comparable to off the road if not lower because I am paranoid about running out of money still.  I will also have the added income from renting my primary residence.  If things get tight I will pull over and get a restaurant or bar job - free food and fast cash. 

So... I want to keep my car for about the first three months that I am on the road (in a barn on the family farm - no cost) to make sure that I like being on the road before I sell it.  Should I just go all in and sell it before I go?  I realize I can "store" it on Craigslist, but I also know what has been done on this car in the past two years.  I shouldn't have to put any money into it for at least another two years.  Almost everything has been replaced, I won't find another with this mileage as meticulously maintained. 

On the flip side... two vehicles is silly especially if one is not being used.

Okay... so I just re-read this.  I sound like a crazy person.  In the first line I say, "I was going to just mothball my current vehicle."  Seems like subconsciously I had already made up my mind.  I am going to go with that.  I will store it on Craigslist.  If anyone wants the car it is $6,000.  But you have to wait until my camper is done.  I'm going to a dealer auction to look at a Sprinter tomorrow.  They are estimating a sales price of $6300... I want to see it first, but I am hoping to get it for about $5,000.  I guess that will make my ratio lower technically... the $10,000 on the conversion would be housing value vs. net worth right?

So my current car value is $6,000 we will call my replacement car value also $6,000.  So that is a wash.

My current home equity is only about $15,000 (pulled out most of equity at 3% interest as a downpayment on 6 rental homes - trust me... the numbers are good.) I would value my finished camper at about $25,000 based on what I am looking at as a base vehicle and what I have seen... I feel like the value will hold between $18 and $22k for 1 to 2 years depending on mileage. So while car wise this is a wash, it does have me tying up more cash in my "home." 

I increase my equity $10,000, but I increase the money I have in my home from $15,000 to $19,000 to $20,000. 

Okay... that is all really negligible.  But I do thank you Mustachians for listening to my nonsensical dribble long enough for me to decide I need to sell my current car.
Title: Re: Car Value Vs Net Worth
Post by: Caoineag on June 24, 2015, 06:47:36 AM
1.54% of networth, dropping fast thanks to increases in networth.

2010 Kia Forte, should last us a very long time despite our fondness for road trips. By the time we need another car, our networth should be high enough to prevent us ever exceeding that percent. We share 1 car in our house.
Title: Re: Car Value Vs Net Worth
Post by: bryan on July 14, 2015, 07:35:47 PM
I'm going to a dealer auction to look at a Sprinter tomorrow.  They are estimating a sales price of $6300... I want to see it first, but I am hoping to get it for about $5,000. 


Do you plan on staying in the van post touring?

If not, if you want to be really smart, you can do the repairs and minimal work on the van to get it decently comfortable (so as to avoid too much sunk capital and subjective value of the van), do the tour, end your tour in the Bay Area, sell the van, and get a flight home.

Not sure how the taxes/regulation works for selling the van in this manner (maybe all the work is on the buyer's side).. but a high roof sprinter van is quite expensive out here, probably fetching the most resale value out of anywhere in North America?
Title: Re: Car Value Vs Net Worth
Post by: Cascadiasubduction on July 14, 2015, 10:10:59 PM
Net worth= 448K
Car1= $969
Car2=1088
0.46%

This is an awesome thread!!!!
Title: Re: Car Value Vs Net Worth
Post by: Rosbif on July 14, 2015, 11:13:03 PM
Another divide by zero error here...

The only time I have ever heard people discussing vehicle value/income ratios outside of here is in the context of "about one year's income is a good place to start". Terrifying.
Title: Re: Car Value Vs Net Worth
Post by: RetiredAt63 on July 15, 2015, 05:41:47 AM
Seriously?  I have never ever even considered spending that much money.  Wasn't that thinking for houses?  A higher multiplier of course, and still silly since there are so many other variables to consider.

No-one in my family has ever spent a year's salary on a car.  Not even close.

Another divide by zero error here...

The only time I have ever heard people discussing vehicle value/income ratios outside of here is in the context of "about one year's income is a good place to start". Terrifying.
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on July 15, 2015, 07:58:54 AM

Doing it like this, between my car and my motorcycle

9.3% of my net worth tied to vehicles =(

Well, thanks to increased net worth and vehicle depreciation, I am down to 7.9% =)
Title: Re: Car Value Vs Net Worth
Post by: Melody on July 15, 2015, 08:27:44 AM
Another divide by zero error here...

The only time I have ever heard people discussing vehicle value/income ratios outside of here is in the context of "about one year's income is a good place to start". Terrifying.
My personal rule is no more than 6 weeks after tax income... This actually works pretty well for most people, it will enable a low income earner to get something basic but usable and a dink couple a nice but not excessive car. This rule seems to hold among most of my friends as well...
Title: Re: Car Value Vs Net Worth
Post by: medinaj2160 on July 15, 2015, 02:10:45 PM
I am doing terrible:

Net Worth= 298K
Cars: Lexus (payments) and Fiesta (paid off)= 45K
15.3%

House paid off, income 135k and we are 30.

Title: Re: Car Value Vs Net Worth
Post by: Rosbif on July 16, 2015, 01:06:18 AM
Another divide by zero error here...

The only time I have ever heard people discussing vehicle value/income ratios outside of here is in the context of "about one year's income is a good place to start". Terrifying.
My personal rule is no more than 6 weeks after tax income... This actually works pretty well for most people, it will enable a low income earner to get something basic but usable and a dink couple a nice but not excessive car. This rule seems to hold among most of my friends as well...

Well that sounds less crazy! The one year thing gives an "affordable" monthly payment.
Title: Re: Car Value Vs Net Worth
Post by: patrickza on July 16, 2015, 05:12:00 AM
0.46%, my car is reliable and better keep lasting me because I don't want to buy another for many many many years.
Title: Re: Car Value Vs Net Worth
Post by: KBecks2 on July 16, 2015, 05:25:40 AM
Our cars are about 1% of Net worth, but we're upgrading a car, and will end up around 4% of net worth.  Ridiculous! 
Title: Re: Car Value Vs Net Worth
Post by: medinaj2160 on April 12, 2018, 04:38:57 PM
I am doing terrible:

Net Worth= 298K
Cars: Lexus (payments) and Fiesta (paid off)= 45K
15.3%

House paid off, income 135k and we are 30.

I am thinking about buying a 60k Tesla Model 3 and I was trying to justify  the expense and happened to find this thread in Google in which I had posted already lol.

Now

Net Worth= 650K
Cars: RAV4 (payments) and mitsubishi Evo (payment)= 45K
6.9%

House paid off, income 165k and we are 33. It is kind of nice to see that although I spend more in car than most in here our net worth is increasing. I just really enjoy working on cars and racing cars.
Title: Re: Car Value Vs Net Worth
Post by: AccidentialMustache on April 12, 2018, 06:11:05 PM
0.55% of our NW. Single 8 year old reliable mmm-approved car.
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on April 12, 2018, 07:50:48 PM
I am doing terrible:

Net Worth= 298K
Cars: Lexus (payments) and Fiesta (paid off)= 45K
15.3%

House paid off, income 135k and we are 30.

I am thinking about buying a 60k Tesla Model 3 and I was trying to justify  the expense and happened to find this thread in Google in which I had posted already lol.

Now

Net Worth= 650K
Cars: RAV4 (payments) and mitsubishi Evo (payment)= 45K
6.9%

House paid off, income 165k and we are 33. It is kind of nice to see that although I spend more in car than most in here our net worth is increasing. I just really enjoy working on cars and racing cars.

You race a RAV4?
Title: Re: Car Value Vs Net Worth
Post by: medinaj2160 on April 12, 2018, 08:04:51 PM
I am doing terrible:

Net Worth= 298K
Cars: Lexus (payments) and Fiesta (paid off)= 45K
15.3%

House paid off, income 135k and we are 30.

I am thinking about buying a 60k Tesla Model 3 and I was trying to justify  the expense and happened to find this thread in Google in which I had posted already lol.

Now

Net Worth= 650K
Cars: RAV4 (payments) and mitsubishi Evo (payment)= 45K
6.9%

House paid off, income 165k and we are 33. It is kind of nice to see that although I spend more in car than most in here our net worth is increasing. I just really enjoy working on cars and racing cars.

You race a RAV4?

I used to race the Lexus IS-F and now the Mitsubishi EVO at Road Atlanta.
Title: Re: Car Value Vs Net Worth
Post by: webguy on April 13, 2018, 06:42:52 AM
We don’t really deive much as I work from home and my wife is a stay at home mom, but we have 2 vehicles:

Net worth: $2.03m
Car 1: $2,000 (2008 Honda Civic)
Car 2: $13,000 (2012 Honda CRV)
Title: Re: Car Value Vs Net Worth
Post by: Apples on April 13, 2018, 11:47:42 AM
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!

We're up to 2 vehicles (plus the farm truck), and based on the price of the 2nd one I thought we'd for sure have a higher %.  The two cars together are 7.7% of our net worth.  Not too bad for a 2009 SUV with 170,000 miles and a 2015 SUV bought 3 years old with 50,000 miles.
Title: Re: Car Value Vs Net Worth
Post by: sol on April 13, 2018, 11:54:25 AM
0.38 percent. Large net worth, and only one 2006 cheap vehicle.

Since posting in this thread ~3 years ago, our single vehicle died and was replaced by two newer ones.

For our two cars, combined blue book value is approximately 0.75% of our net worth (which is also a fuzzy number).

My personal rule of thumb is that you should only buy vehicles in cash, and never own more vehicles than 1% of your net worth.  But vehicles are just tools to me, not hobbies or identity like they are for some folks.

What really baffles me is people who have more net worth tied up in their vehicles than they do in their homes.  You're doing it wrong!
Title: Re: Car Value Vs Net Worth
Post by: boarder42 on April 13, 2018, 11:56:34 AM
networth = 370k
Cars = 20k

5.4% ratio

we'te doing fantastic here

cars = 12k total
Networth = 850k

1.4%

this was a fun revival.
Title: Re: Car Value Vs Net Worth
Post by: Car Jack on April 13, 2018, 12:32:41 PM
I believe I'm specifically excluded since I own THE vehicle that would be banned by MMM.  2014 Wrangler Unlimited.  I have zero incentive to get rid of it.  Sort of hard to plow snow off my driveway in a Leaf.  Price to plow a good sized snowfall.....1 storm is $300.  For a year like a couple years ago with 11 storms.....fogedaboutit.
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on April 13, 2018, 12:41:48 PM
Net Worth - $114k
KBB Vehicle Value - $8k

7.5%

However I have only been at this for 4 years.

Net Worth - $375k
KBB Vehicle Value - $15k

4%
Title: Re: Car Value Vs Net Worth
Post by: Le Barbu on April 13, 2018, 06:55:48 PM
NW 1.1M$
Cars worth 11k$ (2006 Civic, 2010 Forester) so 1% of NW

I aim for buying 3-8 years old car for less than 10% of annual income and pay cash
Title: Re: Car Value Vs Net Worth
Post by: saijoe on April 27, 2018, 01:29:03 PM
2011 Toyota Highlander $16K
2015 Toyota Prius V $17K
Total $33K
NW $1.4M
Car = 2.35%

House $250K which is 17.8%
Title: Re: Car Value Vs Net Worth
Post by: Bicycle_B on April 29, 2018, 10:57:39 AM
Just found this thread, and love it! 

Unfortunately that means I must participate.  Still occasionally driving the formerly fancy Midlife Crisis Car.  Current KBB value 6300.  About 1.3% of net worth.  Adding in bikes, transport tools = 1.4% of NW.

Net Worth - $114k
KBB Vehicle Value - $8k

7.5%

However I have only been at this for 4 years.

Net Worth - $375k
KBB Vehicle Value - $15k

4%

@Birds1Stone, great improvement!

Props to all of the inspiring people under 1%.  Will keep that in mind if I ever buy a car again.
Title: Re: Car Value Vs Net Worth
Post by: acepedro45 on April 30, 2018, 08:45:27 AM
Three-year-old thread dredged up!

Quote
Net worth: $350k
Car Blue Book Value:  $1900 for a 2003 Chevy Cavalier with 117k miles

Today's net worth is a little over 625k.
KBB is now $3,300 or so for a 2005 Toyota Corolla we bought earlier this year. This splurge means my ratio is only a little bit improved to 0.528% from 0.543%.

For the curious, my beloved Cavalier has been passed to another family member but is still running strong.
Title: Re: Car Value Vs Net Worth
Post by: Arbitrage on June 07, 2018, 09:12:00 AM
Well, I'm not going to do very well on this compared to people here, but should be much better than coworkers/friends.  Also much better than if I had followed through with the Tesla Model 3 purchase I was going to make before catching the FIRE bug ~8 months ago (finally let go of it about 4 months ago).

Two cars, both purchased new.  No plans to replace either in the near future, though DW seems to think my car - which was her daily driver up until 3 years ago - needs replacing just because it's old and therefore must be about to break down.  Switching to bike commuting in 3 weeks, so I don't see why it'll need replacing for a long time.

Mine: 2007 Elantra, 76k miles.  $12k new (MSRP over $16k).  Just looked it up, and was surprised how much it is still worth according to KBB: $4800 private party. 
Hers: 2014 Subaru Outback, 40k miles.  $27k new (MSRP about $31.5k), apparently worth $20k now according to KBB?  That seems optimistic.

Still, if I trust those numbers, that puts us at over 2%.  Better than the 6% it would've been if I had sprung for the Tesla.

Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on June 07, 2018, 09:37:22 AM
Net Worth - $114k
KBB Vehicle Value - $8k

7.5%

However I have only been at this for 4 years.

Net Worth - $375k
KBB Vehicle Value - $15k

4%

Progress!

I sold the motorcycle and  NW is up by 5%, so now my car is worth 2.9% of NW.
Title: Re: Car Value Vs Net Worth
Post by: PoutineLover on June 07, 2018, 10:07:31 AM
I looked up my 16 year old bike on bicycle blue book and apparently it's only worth $43 in good condition, and MSRP new is $300. Winning?
Title: Re: Car Value Vs Net Worth
Post by: lexde on June 07, 2018, 10:54:49 AM
NW: $21k
Car: $8-9k (2012 Camry 65k Miles)

Still early on my journey! But I’m keeping the car for a long time and my NW is creeping upwards! Bought it 2-years-new with 16k miles on it, and it has been good to me so far.
Title: Re: Car Value Vs Net Worth
Post by: OurTown on June 07, 2018, 11:02:45 AM
2013 Mercedes, $11,000
2012 Honda Insight, $4,000

Total NW $617,000 (does not include value of personalty, like cars)

Car fmv as percentage of net worth = 2.4%

Title: Re: Car Value Vs Net Worth
Post by: markbike528CBX on June 07, 2018, 11:14:53 AM
I believe I'm specifically excluded since I own THE vehicle that would be banned by MMM.  2014 Wrangler Unlimited.  I have zero incentive to get rid of it.  Sort of hard to plow snow off my driveway in a Leaf.  Price to plow a good sized snowfall.....1 storm is $300.  For a year like a couple years ago with 11 storms.....fogedaboutit.

@Car Jack glad you said "Sort of hard " vs a Leaf.
   https://www.youtube.com/watch?v=E2Jn_Xw6SQk -plow with a Leaf
Diclosure: have not veiwed the vid.  YouTube is hard to do on a iPad 1.

Anyway, 0.6% of investable NW,  less if paid house equity is included.



Title: Re: Car Value Vs Net Worth
Post by: TheWifeHalf on June 07, 2018, 11:16:03 AM
NW - 7 figures
truck  - 4 figures    5 figures  (looked it up) It was bought when I was in a coma to replace the one totaled in the accident.  It is 14  10 yrs old, bought used 8 years ago. It is an example of why I don't question when TheHusbandHalf buys a vehicle - he keeps them for years.

He loves his truck (really, any vehicle we have). After the accident I told him to use my van as a trade in. I will always remember the look of total surprise on his face. I had a feeling I'd never show dogs again, and he had made it custom for that use. We kept the seats I didn't need, so they looked practically new, so was easy to trade in.

We will never have a Mus----n vehicle, it's not his style. He is the one that works for the money to pay for it, and he's the one that will drive it the most, so I don't question his decision. I might want to know WHY he picked (a Lincoln) but do not question the idea to purchase one.

His truck is a Lincoln, he said it was something he always wanted, and one of the dealerships he drove buy, had one. It was 2 years old because they stopped making it. We had the money for the one totaled, and the trade in of my van, so I think the cost was extremely manageable. I drive it to the store and back now, never alone, and it is a quality vehicle. The only problem we've had is usual maintenance, the last being changing the spark plugs.
Title: Re: Car Value Vs Net Worth
Post by: Dicey on June 08, 2018, 09:28:34 AM
I love when an old thread gets revived. There is so much good stuff in our archives!

I especially love when people post updates.

I have a new to me car since this thread began. DH and bonus kid are still happily driving the same vehicles. I was just fine driving my old car, but DH does the maintenance and he deemed it time to go. We considered a Tesla, but I don't want the stress of such a fancy car, plus the driving ranges are not yet well suited to our needs. My "new"car is still older than this thread, lol. All of them are paid for and I can't be arsed to look up their values, but it's miniscule, compared to our TNW. I'm mostly posting to say congratulations to everyone for making such good progress during the last three years!
Title: Re: Car Value Vs Net Worth
Post by: UnleashHell on June 08, 2018, 10:09:21 AM
2 cars - each about .6%  of net worth
7 bikes.... probably not far behind.....

my garage is for bikes...

Divorce damaged the net.
new (to me) car 2012 prius.

now at about 1.8% of net.
car should be around for another 8 to 10 years though...
Title: Re: Car Value Vs Net Worth
Post by: SnackDog on June 09, 2018, 03:54:44 AM
We haven't owned for a while but will be purchasing soon I reckon. Looking for a used, reliable vehicle good for 10 years for around 0.2%.  I could be persuaded to recklessly splurge all the way up to 0.3% for Applecarplay, advanced collision avoidance, etc.
Title: Re: Car Value Vs Net Worth
Post by: MaybeBabyMustache on June 09, 2018, 08:20:35 PM
Have a few vehicles. (Gifting one to my parents in August - just waiting for them to be able to drive it from California to Washington). Total vehicle(s) value - .03% of our net worth. Honestly, still regret our nicer car purchase. No regrets on our Bolt - my favorite car I've ever driven!
Title: Re: Car Value Vs Net Worth
Post by: SnackDog on June 10, 2018, 03:30:08 AM
Have a few vehicles. (Gifting one to my parents in August - just waiting for them to be able to drive it from California to Washington). Total vehicle(s) value - .03% of our net worth. Honestly, still regret our nicer car purchase. No regrets on our Bolt - my favorite car I've ever driven!

A $10,000 vehicle at 0.03% of net worth means you are sitting on a $33 million savings account.  Nicely done!
Title: Re: Car Value Vs Net Worth
Post by: Rightflyer on June 10, 2018, 03:52:39 AM
Using investments only, we are at 0.29%.

May have to get a scooter or small motorcycle though so that will go up (slightly).

 
Title: Re: Car Value Vs Net Worth
Post by: MaybeBabyMustache on June 10, 2018, 10:40:55 AM
Have a few vehicles. (Gifting one to my parents in August - just waiting for them to be able to drive it from California to Washington). Total vehicle(s) value - .03% of our net worth. Honestly, still regret our nicer car purchase. No regrets on our Bolt - my favorite car I've ever driven!

A $10,000 vehicle at 0.03% of net worth means you are sitting on a $33 million savings account.  Nicely done!

Math is hard. You are correct - just under 3%
Title: Re: Car Value Vs Net Worth
Post by: englishteacheralex on June 10, 2018, 11:07:55 AM
Cheap cars are the cornerstone of our financial plan, since two kids in daycare and a mortgage in paradise kill so much other potential frugality for us.

2003 Matrix 112k miles: probably could get $2k for it
2007 Mazda 5 70k miles: maybe $3800?

Net worth: $315k

1.7%
Title: Re: Car Value Vs Net Worth
Post by: tomsang on June 10, 2018, 01:35:21 PM
Three cars which total to .23% of networth.
Title: Re: Car Value Vs Net Worth
Post by: meatgrinder on June 10, 2018, 11:51:07 PM
two cars (95 camry and 03 accord) total to 0.16% of NW
Title: Re: Car Value Vs Net Worth
Post by: SpreadsheetMan on June 11, 2018, 01:42:59 AM
Amusing thread. 0.02% for me.

Low value car rather than massive wealth though :-)
Title: Re: Car Value Vs Net Worth
Post by: Faramir on June 11, 2018, 01:58:51 AM
Net Worth      US$650K
2 Cars Total   US$9.7K

1.5% of NW
Title: Re: Car Value Vs Net Worth
Post by: mrmoonymartian on June 11, 2018, 02:26:17 AM
Currently 1% for me.
Title: Re: Car Value Vs Net Worth
Post by: Herbert Derp on June 11, 2018, 03:41:26 AM
0.0042% for me (razor scooter)
Title: Re: Car Value Vs Net Worth
Post by: Rightflyer on June 11, 2018, 04:59:53 AM
0.0042% for me (razor scooter)

Amusing thread. 0.02% for me.

Low value car rather than massive wealth though :-)

You folks are RICH!!

$1000 car @ .02% =$5 millon

$100 scooter @ .0042% = $2.38 million

Congrats
Title: Re: Car Value Vs Net Worth
Post by: arebelspy on March 29, 2019, 07:46:56 PM
our car is worth about 0.33% of our net worth.

We sold that car a few months after that post, went carless for multiple years (an RV for a bit in there), and now have a car again. Purchased October 2018.

Using the number we paid for it, and our net worth that month, it comes to 0.36% of our NW.

Pretty similar to before (though car is worth quite a bit more, NW has risen quite a bit as well), and if I guesstimate what it's worth now six months later, with our current NW, it's around .32%.
Title: Re: Car Value Vs Net Worth
Post by: Zamboni on March 29, 2019, 08:20:16 PM
Leave it to Herbert Derp to make me laugh.

Currently I have 2 cars and a van (3 drivers here), so my number probably isn't great. The vehicles aren't worth much, though, in terms of selling value: 2003, 2003, and 2014 model years. All run like tops and are worth a lot to us in terms of driving value.
Title: Re: Car Value Vs Net Worth
Post by: Dicey on March 30, 2019, 12:52:02 AM
our car is worth about 0.33% of our net worth.

We sold that car a few months after that post, went carless for multiple years (an RV for a bit in there), and now have a car again. Purchased October 2018.

Using the number we paid for it, and our net worth that month, it comes to 0.36% of our NW.

Pretty similar to before (though car is worth quite a bit more, NW has risen quite a bit as well), and if I guesstimate what it's worth now six months later, with our current NW, it's around .32%.
Did you sell the RV? If so, did you do okay on it?
Title: Re: Car Value Vs Net Worth
Post by: Dicey on March 30, 2019, 01:00:02 AM
Currently I have 2 3 cars and a van (3 drivers here)... The vehicles aren't worth much, though, in terms of selling value: 2003, 2003, and 2014 model years. All run like tops and are worth a lot to us in terms of driving value.
Wow, parallel vehicle lives! Ours are the same years and the description of their condition matches, too.

They are such a small fraction of our NW that we don't count them at all.
Title: Re: Car Value Vs Net Worth
Post by: middo on March 30, 2019, 01:11:18 AM
When we bought our "new car" it was worth .025% of our net worth.  Not sure what it is worth now, but it hasn't gone up in value.
Title: Re: Car Value Vs Net Worth
Post by: Little Aussie Battler on March 30, 2019, 02:10:57 AM
About 2%.
Title: Re: Car Value Vs Net Worth
Post by: Apples on March 30, 2019, 07:31:47 AM
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!

We're up to 2 vehicles (plus the farm truck), and based on the price of the 2nd one I thought we'd for sure have a higher %.  The two cars together are 7.7% of our net worth.  Not too bad for a 2009 SUV with 170,000 miles and a 2015 SUV bought 3 years old with 50,000 miles.

Oh this is fun to do a 1 year later update.  I believe our vehicles are now worth about 5.05% of our net worth.  Moving the right direction!
Title: Re: Car Value Vs Net Worth
Post by: philli14 on March 30, 2019, 09:47:56 AM
Yikes, I have some work to do. But I plan on (A) having this vehicle for a long time and (B) seeing my net worth explode in the next few years :)

2015 Toyota Corolla S with 94k miles

9.1% of my net worth.

New future goal of getting that number <1%!
Title: Re: Car Value Vs Net Worth
Post by: arebelspy on March 30, 2019, 10:24:22 AM
Did you sell the RV?

It's on consignment as of 3 days ago.

We used it a total of approximately one week in 2018, and none at all in 2019, so it was well past time to sell it.
Title: Re: Car Value Vs Net Worth
Post by: Fishindude on March 30, 2019, 10:38:04 AM
1.3%
High net worth with three late model automobiles.
Title: Re: Car Value Vs Net Worth
Post by: Car Jack on March 31, 2019, 10:28:40 AM
1.3%
High net worth with three late model automobiles.

4 vehicles: 14 Wrangler Unlimited (a favorite of MMM....yuk, yuk), 17 Legacy Limited, 09 Fusion, 13 Crosstrek.  Total estimated $53k.  1.77%.  This will go higher.  The Crosstrek is getting the short block replaced under the oil consumption settlement in a couple weeks and then we're looking to trade it for a new Crosstrek manual (yes, OMG, I'm buying a new car :D).  Before the winter hits, my younger son will get his license so the Fusion will go and an AWD something will join the family.  I don't know what yet, so my % is going to about double.  All the car swaps will be for cash, of course.  And yes, we use snow tires.  I have more snow tire sets than I have cars (no, really, I have 7 full sets of snows on wheels).
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on March 31, 2019, 11:02:34 AM
Net Worth - $114k
KBB Vehicle Value - $8k

7.5%

However I have only been at this for 4 years.

Net Worth - $375k
KBB Vehicle Value - $15k

4%

Progress!

I sold the motorcycle and  NW is up by 5%, so now my car is worth 2.9% of NW.

Love this thread

Our NW = $586k
2 Cars total value = $12k

2%

If I sell my older sports luxury car, we are down to one $1k value vehicle =) 2004 Nissan Sentra, base model. I'm listing it in May.
Title: Re: Car Value Vs Net Worth
Post by: Le Barbu on March 31, 2019, 12:07:40 PM
NW 1.1M$
Cars worth 11k$ (2006 Civic, 2010 Forester) so 1% of NW

I aim for buying 3-8 years old car for less than 10% of annual income and pay cash

Update: same cars, worth less than 10k$ now, NM 1.2M$ so we’re down to 0.8%
Title: Re: Car Value Vs Net Worth
Post by: RWD on March 31, 2019, 01:18:45 PM
8.4%.........
Title: Re: Car Value Vs Net Worth
Post by: Bateaux on March 31, 2019, 06:07:59 PM
Net worth 1.6 Million.  Car is 2003 Dodge Ram Conversion Van.  Dodge 318 engine.  125,000 miles.  Worth $1500.  Maybe.  So less than 0.1% of Net Worth

Sold the Dodge Van, $1,200.  Miss her dearly.

Now drive 2008 Honda Accord with 205K miles.   Value, about $1,500. 
New net worth of investments 2.1M.  Car = about 0.07% of net worth.
Title: Re: Car Value Vs Net Worth
Post by: Money Badger on April 12, 2019, 07:45:40 PM
4% today.   By FIRE in 2021, less than 3% is the goal.

Both are quite new and love them 2 yrs into ownership and drive less than 12K mi per year so hope we enjoy them 10+ years from here. 
Title: Re: Car Value Vs Net Worth
Post by: Taran Wanderer on April 12, 2019, 09:26:32 PM
2.7%, recently up from 1.5%.  3% is my comfortable ratio, down from 10% when our net worth was much lower.  We could make it lower, but I like a nice car, and I get mileage reimbursement from work that covers most of the cost.
Title: Re: Car Value Vs Net Worth
Post by: guelphinvestor on April 13, 2019, 09:48:43 AM
0.5 %

Sent from my Nexus 5 using Tapatalk

Title: Re: Car Value Vs Net Worth
Post by: LeftA on April 13, 2019, 12:02:51 PM
Around 1.8%.

Two cars bought new in 2010 and 2013.
Title: Re: Car Value Vs Net Worth
Post by: TheHobbit on April 28, 2019, 06:44:54 PM
0.18%,  NW in low M’s.
Title: Re: Car Value Vs Net Worth
Post by: Kem on April 28, 2019, 07:42:59 PM
NW 122K
Car: 2001 Honda accord manual, purchased for $1,500 3 years ago. Just general upkeep (full list here https://forum.mrmoneymustache.com/welcome-to-the-forum/when-do-you-call-it-quits-on-a-car/)
 
The Honda replaced a $32K vw TDI which liked to leave me stranded and required frequent major repairs... Plus it was fully financed (dang financial illiteracy).
Title: Re: Car Value Vs Net Worth
Post by: jiimmy on May 18, 2019, 09:20:39 AM
2009 Kia Rio base with 116k miles: ~$1600
NW roughly $80k

Ratio of 2%

My goal is to hit the sub 1% mark a year from now, as NW continues to increase and the ol' Kia continues to slowly depreciate.



Title: Re: Car Value Vs Net Worth
Post by: leland on May 18, 2019, 02:04:22 PM
0.07% :D

That's with overestimating KBB a tad, but not counting the deferred repairs that baby will need... Sadly when it finally goes I'll probably be in the 0.5-1% range (assuming NW is in the 1-2MM neighborhood).
Title: Re: Car Value Vs Net Worth
Post by: FLOW on May 18, 2019, 02:16:46 PM
Old Toyota Corolla with 199K miles on it: $2,500, maybe?

Net worth: 527K
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on May 20, 2019, 12:08:33 PM
0.29%

Total value of cars/trucks =$9000

NW 3.1M
Title: Re: Car Value Vs Net Worth
Post by: DadJokes on May 21, 2019, 05:28:19 AM
Well, I don't think I like this game very much.

2012 GMC Terrain: ~$8.5k
2013 Ford Fusion: ~$7.5k
Net worth: ~$80k

Ratio: 0.2
Title: Re: Car Value Vs Net Worth
Post by: Enigma on May 21, 2019, 08:01:34 AM
KBB - 0.40% of my net worth.  Debating on if I should upgrade.
Title: Re: Car Value Vs Net Worth
Post by: 35andFI on May 21, 2019, 07:56:02 PM
Current net worth around $118k

2011 Yamaha Stryker $4,500 (for sale)
2011 Honda Fit Sport $8,500

Ratio: 13/118 = 11%

Once the motorcycle sells, that’ll drop to 7.2% not including other NW growth.
Title: Re: Car Value Vs Net Worth
Post by: 35andFI on May 25, 2019, 03:21:28 PM
Sold the motorcycle yesterday!

That puts me just shy of 7%
Title: Re: Car Value Vs Net Worth
Post by: SwordGuy on May 25, 2019, 11:07:01 PM
Using generous estimates for our car's net worth, 0.0037%.

It helps that mine is a salvage title that might net me $200. 

Wife's is newer, fewer miles, but still banged up a fair bit.
Title: Re: Car Value Vs Net Worth
Post by: Jon_Snow on May 26, 2019, 11:26:01 AM
0.29%

Total value of cars/trucks =$9000

NW 3.1M

Somebody better get to creating a "Race to 4m" thread! lol
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on May 26, 2019, 01:20:01 PM
0.29%

Total value of cars/trucks =$9000

NW 3.1M

Somebody better get to creating a "Race to 4m" thread! lol

Naah.. a third of it is funny money (pensions and a guess at home value).. So it doesn't count..:)
Title: Re: Car Value Vs Net Worth
Post by: Knapptyme on May 26, 2019, 01:57:50 PM
'12 Jeep Patriot - $9371 (not sure why this value is higher than our newer car)
'16 Nissan Versa - $8521

And a crap ton of bikes and rideable kids toys (12-30 at any given time) worth something less than $2000

NW: ~$800k

~2.5%

We're not winning this game for now and likely still losing it in the future. Oh well.
Title: Re: Car Value Vs Net Worth
Post by: MMM123 on July 02, 2019, 03:44:56 AM
36%

Was 57% earlier this year.

Likely under 20% by end of year and will continue to drop from there...
Title: Re: Car Value Vs Net Worth
Post by: 35andFI on July 02, 2019, 04:22:02 AM
Sold the motorcycle yesterday!

That puts me just shy of 7%

6.4% and dropping!
Unfortunately, not only is the denominator rising but the numerator is dropping.
Title: Re: Car Value Vs Net Worth
Post by: RWD on July 02, 2019, 07:31:00 AM
Sold the motorcycle yesterday!

That puts me just shy of 7%

6.4% and dropping!
Unfortunately, not only is the denominator rising but the numerator is dropping.

That is how depreciation works
Title: Re: Car Value Vs Net Worth
Post by: 35andFI on July 02, 2019, 08:09:18 AM
Sold the motorcycle yesterday!

That puts me just shy of 7%

6.4% and dropping!
Unfortunately, not only is the denominator rising but the numerator is dropping.

That is how depreciation works

Yep! At least it's a 2011 Honda and doesn't depreciate as hard as other makes (from what I hear).
Title: Re: Car Value Vs Net Worth
Post by: HPstache on July 02, 2019, 08:40:07 AM
Two vehicles worth about $11,000 total...  About 2% of our current NW.
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on July 02, 2019, 10:05:08 AM
Ok Car value story with updated values to today..

I had a renter a year or so back, guy spent everything he ever laid his hands on.

In 1984 he bought a brand new Mustang. He told me he spent $19,000 on it (a bit high, but maybe that was with financing).

The Mustang had stopped running a few years back and he was dragging the car from rental place to rental place on a trailer. While here he sold the engine out of it and sold the body for essentially scrap.

I took $19,000 and put that into the S&P 500 calculator... Today that $19k if he had invested it instead would be worth...

.... $798,000... Yes almost $800k

I only wish I had started investing in 1984!
Title: Re: Car Value Vs Net Worth
Post by: acepedro45 on July 03, 2019, 10:49:54 AM
My original post from 2015:

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

I am embarrassed to admit this to this crowd, but we are now the owners of a minivan. 2 kids plus two aging parents in the home drove us to this act of desperation.

2006 Sienna - $3,900 176k
2005 Corolla - $3,200 168k

2015 ratio of car to net worth = .54%
Today's ratio = 1%

I hang my head in shame over the hedonic adaptation the ratios reveal.
Title: Re: Car Value Vs Net Worth
Post by: Tyson on July 03, 2019, 11:14:24 AM
2007 Acura MDX = $9k
Net Worth = $514k

Ratio = 1.7%
Title: Re: Car Value Vs Net Worth
Post by: jiimmy on March 06, 2021, 09:13:10 AM
2009 Kia Rio base with 116k miles: ~$1600
NW roughly $80k

Ratio of 2%

My goal is to hit the sub 1% mark a year from now, as NW continues to increase and the ol' Kia continues to slowly depreciate.

Car is worth more than I thought, $2.2k

NW of $175k

1.3%

Maybe I'll achieve the elusive sub 1% in 2022.
Title: Re: Car Value Vs Net Worth
Post by: markbike528CBX on March 06, 2021, 10:39:27 AM
Anyway, 0.6% of investable NW,  less if paid house equity is included.

Update: 2 motorcycles, the CBX and a Honda 600F2,  2 cars HHR and Boxster.  Not sure the HHR was included last time.

0.51%


Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on March 06, 2021, 12:37:27 PM
Net Worth - $114k
KBB Vehicle Value - $8k

7.5%

However I have only been at this for 4 years.

Net Worth - $375k
KBB Vehicle Value - $15k

4%

Progress!

I sold the motorcycle and  NW is up by 5%, so now my car is worth 2.9% of NW.

Love this thread

Our NW = $586k
2 Cars total value = $12k

2%

If I sell my older sports luxury car, we are down to one $1k value vehicle =) 2004 Nissan Sentra, base model. I'm listing it in May.

Car value is down to ~0.25% of NW.........we drive a really cheap car!
Title: Re: Car Value Vs Net Worth
Post by: Dicey on March 06, 2021, 01:10:25 PM
I love when an old thread gets revived. There is so much good stuff in our archives!

I especially love when people post updates.

I have a new to me car since this thread began. DH and bonus kid are still happily driving the same vehicles. I was just fine driving my old car, but DH does the maintenance and he deemed it time to go. We considered a Tesla, but I don't want the stress of such a fancy car, plus the driving ranges are not yet well suited to our needs. My "new"car is still older than this thread, lol. All of them are paid for and I can't be arsed to look up their values, but it's miniscule, compared to our TNW. I'm mostly posting to say congratulations to everyone for making such good progress during the last three years!
Hmmm, still driving all the same vehicles...
However, in early March last year we made a long-planned RV purchase.We paid about $70k for a 2012 Leisure Travel Serenity with 25k miles. We've used it exactly five nights during the pandemic, sheesh. Happily, apparently RV's are holding their value quite nicely, but our plans are to use the heck out of it when things normalize.
We still don't count it or any of our vehicles in our NW. We paid for it out of new money, so no debt taken on, no investments liquidated.
Title: Re: Car Value Vs Net Worth
Post by: foghorn on March 06, 2021, 01:11:56 PM
Car = 2016 Acura RDX = KBB = $18,000
Net Worth (Includes House) = $4,000,000

Car % of NW = .45%


Title: Re: Car Value Vs Net Worth
Post by: RWD on March 06, 2021, 01:19:56 PM
8.4%.........

It's fun to come back and look at this again. It's been almost two years and we replaced one car (with an approximately equal value car). Down to 5.1% of net worth.
Title: Re: Car Value Vs Net Worth
Post by: LeftA on March 06, 2021, 03:14:55 PM
Around 1.8%.

Two cars bought new in 2010 and 2013.

Almost 2 years later, the number is now about half what it was....0.94%. Not sure if it will go much lower. Likely to get a replacement for the older car in 2022.
Title: Re: Car Value Vs Net Worth
Post by: Bateaux on March 06, 2021, 10:57:54 PM
My 13 year old Honda Accord is 0.05 percent of networth.
Title: Re: Car Value Vs Net Worth
Post by: middo on March 07, 2021, 04:33:43 AM
When we bought our "new car" it was worth .025% of our net worth.  Not sure what it is worth now, but it hasn't gone up in value.

Hmm.  I now get 0.14%. Must have calculated wrong.  A bit embarrassing for a maths teacher.  We do have a car worth nearly 10% of our net worth, but it is a family heirloom that will be restored during retirement.
Title: Re: Car Value Vs Net Worth
Post by: badger1988 on March 07, 2021, 08:54:23 AM
Lookling at this thread for the first time, but I've got all the data back to 2011 when I graduated from college. Fun to see how this metric has improved over time, dropping below 1% for the first time at the end of January:

Current Vehicles (1/31/2021):
2011 Ford Fiesta - $3,232
2011 Chrysler Town and Country - $6,529
Total Value: $9,766
Title: Re: Car Value Vs Net Worth
Post by: geekette on March 07, 2021, 09:12:49 AM
A surprising .15% 

Might want a new car in the next few years, but this one only has 80k miles on it!
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on March 08, 2021, 12:07:16 PM
My answer to this question is the same answer to the "What is my credit rating?" Question..

Answer... I have no idea...:)
Title: Re: Car Value Vs Net Worth
Post by: norajean on March 08, 2021, 01:53:50 PM
There is no one-size fits all or rule of thumb here.  I'm not sure there is an accepted definition of net worth.

When I finished college my car was 100% of my assets but I had negative NW due to student loans.  So what?

We like 100k mile Lexus vehicles and have two a the moment which may be as much as 0.17% of our net worth.  Ho hum. Should I go on a buying frenzy and push that all the way to 1%?  That would be a huge splurge that I really can't imagine doing on a single vehicle but maybe a small collection.  I could use an old pickup with a hitch for hauling a trailer and perhaps a roadster (heaps of curvy local roads).  Also need an electric riding mower or a tractor. Do those count?
Title: Re: Car Value Vs Net Worth
Post by: NotJen on March 08, 2021, 02:03:33 PM
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.

Ha.  6 years later I'm at 0.3% with the same car.
NW =  $1250k
KBB = $     4k
Title: Re: Car Value Vs Net Worth
Post by: Le Barbu on March 11, 2021, 04:58:39 AM
NW 1.1M$
Cars worth 11k$ (2006 Civic, 2010 Forester) so 1% of NW

I aim for buying 3-8 years old car for less than 10% of annual income and pay cash

NW 1.5M$
Cars worth 7.5k$ (2006 Civic, 2010 Forester) so 0.5% of NW

I hope to keep my cars for a while and someday, have no cars at all!
Title: Re: Car Value Vs Net Worth
Post by: Car Jack on March 11, 2021, 05:11:52 AM
Also need an electric riding mower or a tractor. Do those count?

Hope not.  I'm sure my Kubota 4 wheel drive diesel tractor with the bucket loader is holding its value way better than the 8 year old Subaru that my younger son is driving.
Title: Re: Car Value Vs Net Worth
Post by: DadJokes on March 11, 2021, 05:38:52 AM
Well, I don't think I like this game very much.

2012 GMC Terrain: ~$8.5k
2013 Ford Fusion: ~$7.5k
Net worth: ~$80k

Ratio: 0.2

I actually used KBB for values this time:

2012 Terrain: $5,700
2013 Fusion: $4,000
Net worth: $240,000

Ratio: 0.04

I doubt our cars dropped that much in two years, so I was probably overestimating their value before. Either way, they should both be good for another decade or so.
Title: Re: Car Value Vs Net Worth
Post by: mizzourah2006 on March 11, 2021, 05:47:53 AM
2013 GMC Sierra Denali ~ $24k (bought before I found MMM)
2015 GMC Terrain ~ $12k

Networth ~1.35 million

So, 2.6%

Title: Re: Car Value Vs Net Worth
Post by: Taran Wanderer on March 11, 2021, 05:29:19 PM
3.6% for us, but I like cars and we have an extra. Plus a chunk of my car costs get reimbursed through frequent work travel. Or used to anyway.
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on March 11, 2021, 05:56:46 PM
Also need an electric riding mower or a tractor. Do those count?

Hope not.  I'm sure my Kubota 4 wheel drive diesel tractor with the bucket loader is holding its value way better than the 8 year old Subaru that my younger son is driving.

Same here.. On the tractor that is..:)
Title: Re: Car Value Vs Net Worth
Post by: Morning Glory on March 11, 2021, 06:08:02 PM
0.002 here for cars, plus 0.003 for the farm truck and 0.006 for the tractor. Total vehicles = 0.011, but it's less because they weren't included in the denominator. No wait, it's still 0.011. The value of our vehicles is so small in comparison to our net worth that there is no point in adding them to the denominator of the equation because the result is the same!!!!
Title: Re: Car Value Vs Net Worth
Post by: RWD on March 11, 2021, 08:56:07 PM
0.002% here for cars, plus 0.003 for the farm truck and 0.006 for the tractor. Total vehicles = 0.011%, but it's less because they weren't included in the denominator. No wait, it's still 0.011%. The value of our vehicles is so small in comparison to our net worth that there is no point in adding them to the denominator of the equation because the result is the same!!!!
Are you sure you did the math right? Based on another post your net worth is around $650k so that means the total value of all your vehicles would be only $71! Did you mean 0.011 (1.1%) instead of 0.011%? That would be a combined vehicle value of ~$7,100 which sounds more likely.
Title: Re: Car Value Vs Net Worth
Post by: Morning Glory on March 11, 2021, 09:36:37 PM
0.002% here for cars, plus 0.003 for the farm truck and 0.006 for the tractor. Total vehicles = 0.011%, but it's less because they weren't included in the denominator. No wait, it's still 0.011%. The value of our vehicles is so small in comparison to our net worth that there is no point in adding them to the denominator of the equation because the result is the same!!!!
Are you sure you did the math right? Based on another post your net worth is around $650k so that means the total value of all your vehicles would be only $71! Did you mean 0.011 (1.1%) instead of 0.011%? That would be a combined vehicle value of ~$7,100 which sounds more likely.
I was math-ing while drunk, I'm sorry. I am also using an inflated NW value of 846k which includes my pension rollover information and stuff in my husband's name which I don't usually include in my race-to thread number because I don't look it up every month. It's about $9500 all together! Jeebus I am usually good at math I promise.

1 k each car plus 2.5k farm truck and 5-6k tractor
Title: Re: Car Value Vs Net Worth
Post by: SpareChange on March 12, 2021, 08:41:20 AM
KBB says the private party value of my 2007 Focus hatchback is $2,456. Seems high, but I'll take it :). That puts it at 0.48% of NW.
Title: Re: Car Value Vs Net Worth
Post by: JAYSLOL on March 12, 2021, 08:50:40 AM
I’ll jump in on this one, 1995 Toyota Tercel with 330k worth about $400 = 0.3% of NW.  DWs car is an 06 Hyundai worth around $3k or 2.3% of NW
Title: Re: Car Value Vs Net Worth
Post by: Money Badger on April 08, 2021, 07:24:48 PM
4% today.   By FIRE in 2021, less than 3% is the goal.

Both are quite new and love them 2 yrs into ownership and drive less than 12K mi per year so hope we enjoy them 10+ years from here.

Alrighty then...   Looked back to my 2 year old post on this topic... As planned, same cars and est. private party value vs. NW is down to 2.8%.   
Title: Re: Car Value Vs Net Worth
Post by: SimpleCycle on April 08, 2021, 08:23:43 PM
We hit our lowest ratio in May of 2018 when our NW was $597k and our car was a 2003 Toyota Corolla worth $700. 0.11%

Now we’re worth $1.2M and own a 2016 Honda Fit worth $12k, so exactly 1%.
Title: Re: Car Value Vs Net Worth
Post by: Morning Glory on April 08, 2021, 10:33:43 PM
0.002% here for cars, plus 0.003 for the farm truck and 0.006 for the tractor. Total vehicles = 0.011%, but it's less because they weren't included in the denominator. No wait, it's still 0.011%. The value of our vehicles is so small in comparison to our net worth that there is no point in adding them to the denominator of the equation because the result is the same!!!!
Are you sure you did the math right? Based on another post your net worth is around $650k so that means the total value of all your vehicles would be only $71! Did you mean 0.011 (1.1%) instead of 0.011%? That would be a combined vehicle value of ~$7,100 which sounds more likely.
I was math-ing while drunk, I'm sorry. I am also using an inflated NW value of 846k which includes my pension rollover information and stuff in my husband's name which I don't usually include in my race-to thread number because I don't look it up every month. It's about $9500 all together! Jeebus I am usually good at math I promise.

1 k each car plus 2.5k farm truck and 5-6k tractor

This dropped a bit in the last week because the farm truck is leaking gas and it got warm enough to find out that the ac no longer works in one car and the other one just lost a nonessential piece of metal due to rust so now it looks worse. Tractor is still fine. It's like a country western song over here.  Can't wait to sell all of them and get something decent.
Title: Re: Car Value Vs Net Worth
Post by: Arbitrage on April 14, 2021, 11:28:51 AM
Ooh, I sold my car so I can redo this calculation.  Unfortunately, we also bought a second house (will sell first one in a few months, market willing), so that dinged our net worth with all of the various transaction costs.  More costs incoming with repairs (on two houses) and moving.

Nevertheless, we're now around 0.8% if we include our family car and my e-bike. 
Title: Re: Car Value Vs Net Worth
Post by: windytrail on April 14, 2021, 11:36:03 AM
Early 1990s Specialized Allez road bike (primary commuter): ~ $300
2020 Specialized Rockhopper mountain bike (recreation): ~$1200
No car

Net worth is $228k

= 0.65% of net worth

Bikes make you feel like a millionaire :)
Title: Re: Car Value Vs Net Worth
Post by: Money Badger on April 24, 2021, 06:09:22 AM
Nice little family surprise came in...   2.3% now.  :-))
Title: Re: Car Value Vs Net Worth
Post by: Tester on April 24, 2021, 09:31:04 AM
5k car, 500k net worth so 1%.
Car is an 2009 Odyssey with 185k miles, might go for a newer vehicle in the next year which would get us to an obscene 4% based on the maximum I am ready to pay...
I hope to increase the net worth quickly...
Title: Re: Car Value Vs Net Worth
Post by: SwordGuy on April 24, 2021, 10:28:38 AM
Using generous estimates for our car's net worth, 0.0037%.

It helps that mine is a salvage title that might net me $200. 

Wife's is newer, fewer miles, but still banged up a fair bit.

We replaced our cars 18 months ago.  Each car is worth about 1/2% of our wealth.
Title: Re: Car Value Vs Net Worth
Post by: JAYSLOL on April 26, 2021, 09:02:13 AM
Just spent 2.9% of NW on a 2012 Elantra Touring, now have around 5% of NW tied up in vehicles.  Always feels awesome to pay cash for a car and barely even feel it.  Congrats to the folks here that are killing it with sub-1% ratios!  I’ll get there eventually haha
Title: Re: Car Value Vs Net Worth
Post by: beege on June 10, 2021, 02:23:49 AM
Back in 2013, just after I found MMM, we owned 3 vehicles which I think added up to about 3% of our net worth.

In 2016-2017 we got rid of all our stuff and moved across the country. We didn't own a car for a year so we were sitting at 0% for a car with 2 cheap bikes. With just our bikes, 0.03% of our worth was in transportation at that point.

These days we are back to owning a (cheap) car and it's about 0.09% of our worth. The bike collection has grown and is probably worth more than the car now (2 fat bikes, 2 city bikes, 2 touring bikes, 2 tandems plus a plethora of other junk bikes I've gotten for free) so probably around 0.2%-0.3% of our worth is in transportation these days.

I hope to start welding some wacky bikes together from all my salvaged bike parts but I doubt that will really change our worth. They might be worth something to me but probably not much to anyone else.
Title: Re: Car Value Vs Net Worth
Post by: pdxvandal on June 11, 2021, 12:19:03 AM
Great thread. With two old cars and $1.7M net worth ... roughly half of 1%? We'll likely upgrade in the next year ... or two.
Title: Re: Car Value Vs Net Worth
Post by: Dicey on June 11, 2021, 02:48:23 AM
I love when an old thread gets revived. There is so much good stuff in our archives!

I especially love when people post updates.

I have a new to me car since this thread began. DH and bonus kid are still happily driving the same vehicles. I was just fine driving my old car, but DH does the maintenance and he deemed it time to go. We considered a Tesla, but I don't want the stress of such a fancy car, plus the driving ranges are not yet well suited to our needs. My "new"car is still older than this thread, lol. All of them are paid for and I can't be arsed to look up their values, but it's miniscule, compared to our TNW. I'm mostly posting to say congratulations to everyone for making such good progress during the last three years!
Hahaha, look what I wrote three years ago!

We still have all the same cars, but we added an RV, which we paid about $70k. We bought it just as the pandemic started, so we haven't used it much. Our cost per use is astronomical, but we hope to whittle that down in the next few years. All four vehicles are paid for and equal about 2.5% of our TNW.

Note to @boarder42, welcome back. Looks like you have continued to make great progress.
Title: Re: Car Value Vs Net Worth
Post by: DadJokes on June 14, 2021, 07:17:43 AM
Well, I don't think I like this game very much.

2012 GMC Terrain: ~$8.5k
2013 Ford Fusion: ~$7.5k
Net worth: ~$80k

Ratio: 0.2

Two years later: same cars, much higher net worth

It looks like no significant change in the combined value of our vehicles, so our updated ratio is down to 5.75% of our NW.
Title: Re: Car Value Vs Net Worth
Post by: StackOfCoins.com (Jay) on July 26, 2021, 08:07:14 AM
2% of net worth or less
Title: Re: Car Value Vs Net Worth
Post by: Taran Wanderer on July 26, 2021, 11:48:49 AM
We’re down to about 0.32% even though one of our cars is actually appreciating.
Title: Re: Car Value Vs Net Worth
Post by: englishteacheralex on July 26, 2021, 07:15:08 PM
We ruined our awesome ratio by buying a 2012 Sienna with 90k miles for $17k. Now is not a great time to buy a car, but *shrug* I was sick of driving our clapped-out stick shift Mazda 5 and gave it to a former student as a graduation present (she had just graduated from teacher college, YAY!). I wanted a Sienna and I'm loving it.

So now our percentage of car value to net worth is 3%.  Well...that's not Mustachian, but it's not that bad, I guess.
Title: Re: Car Value Vs Net Worth
Post by: soulpatchmike on July 27, 2021, 09:56:02 AM
I'll play...we have 4 drivers in our house and 4 cars with 3 more drivers in the making 15,12,10.  Our vehicle situation would not at all be considered mustachian...but from a percentage of TNW it is not bad at ~1.6%
TNW $1.15M
2007 Yukon - owned 9 years - mostly sits now that I wfh but needed for towing our mobile hotel.
2003 T&C van - owned 16 years - Salvage title and $2k payout from a neighbor backing into the door a couple years ago. Mainly a kid car now.
2005 Pacifica - owned a little over a year, sister gave it too us free when she got a new car originally was my parents car. Mainly a kid car.
2015 Nissan Leaf - owned 3 years - Highest used vehicle.
1999 Harley Davidson - $5000 - owned 22 years - this is my primary vehicle in the summer months.
Title: Re: Car Value Vs Net Worth
Post by: markbike528CBX on July 27, 2021, 10:35:23 AM
I'll play...we have 4 drivers in our house and 4 cars with 3 more drivers in the making 15,12,10.  Our vehicle situation would not at all be considered mustachian...but from a percentage of TNW it is not bad at ~1.6%
TNW $1.15M
2007 Yukon - owned 9 years - mostly sits now that I wfh but needed for towing our mobile hotel.
2003 T&C van - owned 16 years - Salvage title and $2k payout from a neighbor backing into the door a couple years ago. Mainly a kid car now.
2005 Pacifica - owned a little over a year, sister gave it too us free when she got a new car originally was my parents car. Mainly a kid car.
2015 Nissan Leaf - owned 3 years - Highest used vehicle.
1999 Harley Davidson - $5000 - owned 22 years - this is my primary vehicle in the summer months.
Nice Rollie Free avatar.  I hope you wear better gear (and don't ride like that).
Title: Re: Car Value Vs Net Worth
Post by: MissNancyPryor on July 27, 2021, 11:16:34 AM
My car is 0.74% of net worth for me. 

The value of my car has gone up due to inflation and is worth about what I paid 3 years ago, like others have said used cars are at a premium now. 
Title: Re: Car Value Vs Net Worth
Post by: soulpatchmike on July 27, 2021, 12:00:37 PM
I'll play...we have 4 drivers in our house and 4 cars with 3 more drivers in the making 15,12,10.  Our vehicle situation would not at all be considered mustachian...but from a percentage of TNW it is not bad at ~1.6%
TNW $1.15M
2007 Yukon - owned 9 years - mostly sits now that I wfh but needed for towing our mobile hotel.
2003 T&C van - owned 16 years - Salvage title and $2k payout from a neighbor backing into the door a couple years ago. Mainly a kid car now.
2005 Pacifica - owned a little over a year, sister gave it too us free when she got a new car originally was my parents car. Mainly a kid car.
2015 Nissan Leaf - owned 3 years - Highest used vehicle.
1999 Harley Davidson - $5000 - owned 22 years - this is my primary vehicle in the summer months.
Nice Rollie Free avatar.  I hope you wear better gear (and don't ride like that).
No need to get naked on a salt flat speed run anymore.  It certainly did make for a great legacy image for Vincent MCs and Rollie.  I can't say I have ever been on a motorcycle or car at 150mph, but there are certainly plenty of them capable of that speed these days even without getting naked. ;)
Title: Re: Car Value Vs Net Worth
Post by: Taran Wanderer on July 27, 2021, 10:46:51 PM
I'll play...we have 4 drivers in our house and 4 cars with 3 more drivers in the making 15,12,10.  Our vehicle situation would not at all be considered mustachian...but from a percentage of TNW it is not bad at ~1.6%
TNW $1.15M
2007 Yukon - owned 9 years - mostly sits now that I wfh but needed for towing our mobile hotel.
2003 T&C van - owned 16 years - Salvage title and $2k payout from a neighbor backing into the door a couple years ago. Mainly a kid car now.
2005 Pacifica - owned a little over a year, sister gave it too us free when she got a new car originally was my parents car. Mainly a kid car.
2015 Nissan Leaf - owned 3 years - Highest used vehicle.
1999 Harley Davidson - $5000 - owned 22 years - this is my primary vehicle in the summer months.

That’s 4 cars, but technically 5 vehicles…
Title: Re: Car Value Vs Net Worth
Post by: soulpatchmike on July 28, 2021, 10:21:58 AM
I'll play...we have 4 drivers in our house and 4 cars with 3 more drivers in the making 15,12,10.  Our vehicle situation would not at all be considered mustachian...but from a percentage of TNW it is not bad at ~1.6%
TNW $1.15M
2007 Yukon - owned 9 years - mostly sits now that I wfh but needed for towing our mobile hotel.
2003 T&C van - owned 16 years - Salvage title and $2k payout from a neighbor backing into the door a couple years ago. Mainly a kid car now.
2005 Pacifica - owned a little over a year, sister gave it too us free when she got a new car originally was my parents car. Mainly a kid car.
2015 Nissan Leaf - owned 3 years - Highest used vehicle.
1999 Harley Davidson - $5000 - owned 22 years - this is my primary vehicle in the summer months.

That’s 4 cars, but technically 5 vehicles…
This is true, 5 vehicles at 1.6% of TNW.  Quite likely would have FIRE by now with no wife and no kids but I am not good at being alone for long periods of time and I think grandkids sound like fun...
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on July 29, 2021, 11:05:47 AM
I'll play...we have 4 drivers in our house and 4 cars with 3 more drivers in the making 15,12,10.  Our vehicle situation would not at all be considered mustachian...but from a percentage of TNW it is not bad at ~1.6%
TNW $1.15M
2007 Yukon - owned 9 years - mostly sits now that I wfh but needed for towing our mobile hotel.
2003 T&C van - owned 16 years - Salvage title and $2k payout from a neighbor backing into the door a couple years ago. Mainly a kid car now.
2005 Pacifica - owned a little over a year, sister gave it too us free when she got a new car originally was my parents car. Mainly a kid car.
2015 Nissan Leaf - owned 3 years - Highest used vehicle.
1999 Harley Davidson - $5000 - owned 22 years - this is my primary vehicle in the summer months.
Nice Rollie Free avatar.  I hope you wear better gear (and don't ride like that).
No need to get naked on a salt flat speed run anymore.  It certainly did make for a great legacy image for Vincent MCs and Rollie.  I can't say I have ever been on a motorcycle or car at 150mph, but there are certainly plenty of them capable of that speed these days even without getting naked. ;)

Even quite small crotch rockets of 600cc are capable of that speed.. Heck some 1000cc+ monsters are over 200mph now I believe.

Makes my 1000cc Yamaha from 1991 at 170mph seem positively pedestrian.... I only maxed it out a few times though..:)
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on July 29, 2021, 11:08:26 AM
Well I have just agreed to buy my Wife her dream car, so my smug 0.01% of car value/NW has taken a hit..

Lets see... now its 0.95%.. This feels dangerously high!
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on July 29, 2021, 12:34:41 PM
@spartana Yeah I have not rode a bike since I emigrated to the US in '96. I'd probably be dead in a week due to the other road users.

Sure miss a fast bike though. I rode a Monster once.. Not the fastest by any means but it was so much fun and handled like a dream..:)

On the new car thing, this is why we just plunked down $35k on a new SUV. When used ones are only a few k less than new and they come with a warranty, it doesn't make much sense buying used.
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on July 29, 2021, 06:42:07 PM
@spartana Yeah I have not rode a bike since I emigrated to the US in '96. I'd probably be dead in a week due to the other road users.

Sure miss a fast bike though. I rode a Monster once.. Not the fastest by any means but it was so much fun and handled like a dream..:)

On the new car thing, this is why we just plunked down $35k on a new SUV. When used ones are only a few k less than new and they come with a warranty, it doesn't make much sense buying used.
Used car prices are crazy now. New prices aren't great either but I hoping that will change eventually. So for now I will continue being carless (getting close to 2 years!). When I first Fired I had 2 motorcycles - a small old cruiser I used to commute to work (and morphed into my road trip vehicle after FIRE) and a the crotch rocket Suzuki for fun stuff. Eventually got rid of them both and got an old Ranger truck with a shell for camping and then got the Ducati for fun stuff. But living in SoCal with crazy drivers lead me to sell that but still tempted to buy an ADV type motorcycle but we will see.

Sadly my Wife has heard all my war stories about riding fast bikes back in England, so I mentioned getting a CBR1000RR it was met with a flat "Hell No!"..:(
Title: Re: Car Value Vs Net Worth
Post by: Dicey on July 30, 2021, 03:31:25 PM
I love when an old thread gets revived. There is so much good stuff in our archives!

I especially love when people post updates.

I have a new to me car since this thread began. DH and bonus kid are still happily driving the same vehicles. I was just fine driving my old car, but DH does the maintenance and he deemed it time to go. We considered a Tesla, but I don't want the stress of such a fancy car, plus the driving ranges are not yet well suited to our needs. My "new"car is still older than this thread, lol. All of them are paid for and I can't be arsed to look up their values, but it's miniscule, compared to our TNW. I'm mostly posting to say congratulations to everyone for making such good progress during the last three years!
Hahaha, look what I wrote three years ago!

We still have all the same cars, but we added an RV, which we paid about $70k. We bought it just as the pandemic started, so we haven't used it much. Our cost per use is astronomical, but we hope to whittle that down in the next few years. All four vehicles are paid for and equal about 2.5% of our TNW.

Note to @boarder42, welcome back. Looks like you have continued to make great progress.
...well, it looks like our cars to net worth ratio is about to drop considerably. It's an MPP for sure.
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on July 30, 2021, 06:32:15 PM
@spartana Yeah I have not rode a bike since I emigrated to the US in '96. I'd probably be dead in a week due to the other road users.

Sure miss a fast bike though. I rode a Monster once.. Not the fastest by any means but it was so much fun and handled like a dream..:)

On the new car thing, this is why we just plunked down $35k on a new SUV. When used ones are only a few k less than new and they come with a warranty, it doesn't make much sense buying used.
Used car prices are crazy now. New prices aren't great either but I hoping that will change eventually. So for now I will continue being carless (getting close to 2 years!). When I first Fired I had 2 motorcycles - a small old cruiser I used to commute to work (and morphed into my road trip vehicle after FIRE) and a the crotch rocket Suzuki for fun stuff. Eventually got rid of them both and got an old Ranger truck with a shell for camping and then got the Ducati for fun stuff. But living in SoCal with crazy drivers lead me to sell that but still tempted to buy an ADV type motorcycle but we will see.

Sadly my Wife has heard all my war stories about riding fast bikes back in England, so I mentioned getting a CBR1000RR it was met with a flat "Hell No!"..:(
LOL Wise woman! Lots of horrific accidents and death when it comes to riding (my brother was killed while riding - which I remind myself every time I get motorcycle lust). I think if I lived somewhere safer to ride I might get another bike but for now a little camper van I can haul my mountain bike to cool riding/camping areas sounds like a better idea. At least I don't fly plane like some crazy people do ;-). Now that might take a bigger percent of your NW then your DWs new SUV.

Yeah it would.. And did!..:)

So sorry you lost your Brother, how awful....:(
Title: Re: Car Value Vs Net Worth
Post by: Dicey on July 30, 2021, 10:53:56 PM
Oh hell no. Were not selling anything.
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on August 03, 2021, 05:14:52 PM
@Exflyboy, if you don't mind sharing, what was your wife's dream car?
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on August 03, 2021, 05:49:58 PM
@Exflyboy, if you don't mind sharing, what was your wife's dream car?

For her its probably not a dream car in the sense of a specific make/model. More of a vehicle that serves a specific need. In this case DW loves to ski which of course means mountains and snow. So an AWD (with ground clearance) car makes travelling to ski areas a much safer proposition.

We both also like to camp so enough room to lie down comfortably is high on the priority.

As our current car is an unreliable and fragile POS (a Chevy Cruze), reliability is high on our list of features.

The Cruze has never actually broken down but every time I open the hood I find something that needs to be fixed. Needless to say any future cars will not have a Chevvy badge on the front!
Title: Re: Car Value Vs Net Worth
Post by: Zamboni on August 03, 2021, 10:03:39 PM
Oh dear, if I don't count those technically co-owned with college students, my calc is 0.07%-0.23% range now.

KBB research reveals my van is especially sketch . . . I just spent more than half of what it is "worth" buying four new tires bc the old ones dry rotted during the pandemic. But it only has 180K miles on it and it runs like a top! Sure, only one of the passenger side doors can be unlocked from the outside with a key that is now different from the ignition key, which had to be rekeyed, but I'm used to it. Just like I'm used to having to hip bump the rear doors from the outside to get them to completely shut.

I've had a brand new BMW (courtesy of my ex-) in the past and I drive nice new cars when I rent them on trips . . . and I just don't get it. Why do people spend so much money on cars? Traffic laws mean that the overall driving experience is just not that different from driving my beater.
Title: Re: Car Value Vs Net Worth
Post by: clarkfan1979 on August 12, 2021, 01:45:39 PM
2007 Pontiac Vibe: $3000
2007 Honda CRV: $4500
2003 Honda Odyssey: $3500
1973 Camper (22 ft.): $8000

Total Vehicles: $19,000

Net Worth: 1.14 million

Dave Ramsey has a guideline that the total value of your cars should be less than 50% of your annual income. He also recommends not buying a new car with zero miles until your net worth is greater than 1 million. 
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on August 13, 2021, 08:07:59 PM
2007 Pontiac Vibe: $3000
2007 Honda CRV: $4500
2003 Honda Odyssey: $3500
1973 Camper (22 ft.): $8000

Total Vehicles: $19,000

Net Worth: 1.14 million

Dave Ramsey has a guideline that the total value of your cars should be less than 50% of your annual income. He also recommends not buying a new car with zero miles until your net worth is greater than 1 million.

Did the vehicles/NW = 5% max not come from DR?
Title: Re: Car Value Vs Net Worth
Post by: ender on August 14, 2021, 07:32:52 AM
Dave Ramsey talks a lot about depreciating assets not being more than 50% of your income (so anything with engines - so he'd include boats/ATVs/etc).

Which makes sense as a general rule of thumb imo.
Title: Re: Car Value Vs Net Worth
Post by: jiimmy on November 01, 2021, 11:52:28 AM
2009 Kia Rio base with 116k miles: ~$1600
NW roughly $80k

Ratio of 2%

My goal is to hit the sub 1% mark a year from now, as NW continues to increase and the ol' Kia continues to slowly depreciate.

Car is worth more than I thought, $2.2k

NW of $175k

1.3%

Maybe I'll achieve the elusive sub 1% in 2022.

Car 2200
NW 225000
0.98%

Yay!

This will look even better in the spring, when I go car free. Only vehicle at that point would be my bike, worth about $200
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on November 01, 2021, 02:34:39 PM
Since we just bought a new car I should update.

So we now have

1) 2021 Honda Passport Sport
2) 2012 Chev Cruze
3) 1989 POS F250 truck

This brings car value vs NW to exactly 1%.
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on November 01, 2021, 03:55:25 PM
1990's Subaru Outback worth ~.1% of our NW =D
Title: Re: Car Value Vs Net Worth
Post by: Car Jack on November 03, 2021, 12:02:14 PM
Never being one to follow the cheap car guy, I've made a firm decision to buy a car in the spring.  Not a replacement car, not something because my other cars are unreliable, but a more fun car.  The car will be a silver Subaru BRZ limited with a 6 speed manual transmission and I'll spring for the factory car cover.  As I head into retirement, it's ultra clear that we have way more than we need.  I've had toy cars at many times in my life, so this isn't new.  I haven't had one since selling my Lotus Elise while my son was in expensive private engineering college.  This is a good, practical choice for me.  Other cars under serious consideration were a Porsche 718 Cayman GT4, a new Lotus Emira and a Nissan GT-R.  The Subaru matches what I like.  Low cost, good handling, hard top, no sunroof, manual seats, not drawing a ton of attention.  I'm looking forward for the new design to hit the showrooms soon and will wait out the winter and my post-accident medical treatments, then go buy one.
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on November 07, 2021, 12:13:56 AM
Never being one to follow the cheap car guy, I've made a firm decision to buy a car in the spring.  Not a replacement car, not something because my other cars are unreliable, but a more fun car.  The car will be a silver Subaru BRZ limited with a 6 speed manual transmission and I'll spring for the factory car cover.  As I head into retirement, it's ultra clear that we have way more than we need.  I've had toy cars at many times in my life, so this isn't new.  I haven't had one since selling my Lotus Elise while my son was in expensive private engineering college.  This is a good, practical choice for me.  Other cars under serious consideration were a Porsche 718 Cayman GT4, a new Lotus Emira and a Nissan GT-R.  The Subaru matches what I like.  Low cost, good handling, hard top, no sunroof, manual seats, not drawing a ton of attention.  I'm looking forward for the new design to hit the showrooms soon and will wait out the winter and my post-accident medical treatments, then go buy one.

having grown up in the UK, light nimble cars with a manual transmission is in my blood. My first car was a 1966 MG Midget that I bought at University in 1981. I did a ton of mods and loved that car. Not the fastest but handled well.

I today hanker after the modern equivalent so the Soobie BRZ or the Toyota GR 86 is on my list.

I need to wear out our 2012 Chevvy Cruze first though, maybe it will blow up..:)
Title: Re: Car Value Vs Net Worth
Post by: RWD on January 26, 2022, 10:22:37 AM
8.4%.........

It's fun to come back and look at this again. It's been almost two years and we replaced one car (with an approximately equal value car). Down to 5.1% of net worth.

Replaced our cheaper car with a new EV. Brings us back up to ~9%.
Title: Re: Car Value Vs Net Worth
Post by: Taran Wanderer on January 28, 2022, 08:43:36 PM
With the market dropping and used car values through the roof, our car value to net worth ratio is actually climbing.
Title: Re: Car Value Vs Net Worth
Post by: Wolfpack Mustachian on January 29, 2022, 06:36:42 AM
I like this thread's concept. I'm always proud of my low-cost vehicles, although having 3 albeit low cost puts me in poor company here. That being said, I'm around 0.75% which I don't think is too bad!
Title: Re: Car Value Vs Net Worth
Post by: RWD on January 29, 2022, 11:03:45 AM
I like this thread's concept. I'm always proud of my low-cost vehicles, although having 3 albeit low cost puts me in poor company here. That being said, I'm around 0.75% which I don't think is too bad!
Anything under 1% is basically a rounding error to your overall finances.
Title: Re: Car Value Vs Net Worth
Post by: Bateaux on January 30, 2022, 06:54:55 PM
About two weeks ago, I took a ferry boat across the Mississippi River to buy a used set of tires and rims.  My 14 year old Honda Accord had 4 different brands of tires and all in bad condition.  The new set has a smaller diameter rim and taller rubber sidewalls.  The taller rubber sidewalls give a softer ride.
Telling the story at work, I was called a cheap bastard by one coworker.  Another coworker commented, he's a cheap bastard and that's why he's a rich bastard.
Title: Re: Car Value Vs Net Worth
Post by: CanadianTeacher on January 30, 2022, 07:30:09 PM
1997 Chevy Cavalier. I calculate it's about 0.2% of my networth.
Title: Re: Car Value Vs Net Worth
Post by: Tyson on February 06, 2022, 07:35:45 PM
2007 Acura MDX - $7k
Net Worth - $820k

Car is 0.8% of my total net worth.
Title: Re: Car Value Vs Net Worth
Post by: JAYSLOL on February 06, 2022, 09:31:52 PM
About two weeks ago, I took a ferry boat across the Mississippi River to buy a used set of tires and rims.  My 14 year old Honda Accord had 4 different brands of tires and all in bad condition.  The new set has a smaller diameter rim and taller rubber sidewalls.  The taller rubber sidewalls give a softer ride.
Telling the story at work, I was called a cheap bastard by one coworker.  Another coworker commented, he's a cheap bastard and that's why he's a rich bastard.

That’s awesome, I’ve bought lots of sets of used tires with and without rims whenever I find a deal on them, sometimes I can use them on my car, and most of the time I resell them.  It’s an item where prices can be all over the map and it pays to keep an eye out for deals. 
Title: Re: Car Value Vs Net Worth
Post by: Just Joe on February 07, 2022, 09:51:29 AM
Our cars (x7) used to represent about 3% of our net worth. Parked another antique in the garage to restore and that screwed up the math badly. Worth a bit now, worth alot finished, will cost a fair bit to restore it. I DIY everything.

Our daily driver cars are low value vehicles. There is one nicer weekend vehicle. Three antiques in progress. Need to finish one this summer.
Title: Re: Car Value Vs Net Worth
Post by: Car Jack on February 07, 2022, 10:06:43 AM
Never being one to follow the cheap car guy, I've made a firm decision to buy a car in the spring.  Not a replacement car, not something because my other cars are unreliable, but a more fun car.  The car will be a silver Subaru BRZ limited with a 6 speed manual transmission and I'll spring for the factory car cover.  As I head into retirement, it's ultra clear that we have way more than we need.  I've had toy cars at many times in my life, so this isn't new.  I haven't had one since selling my Lotus Elise while my son was in expensive private engineering college.  This is a good, practical choice for me.  Other cars under serious consideration were a Porsche 718 Cayman GT4, a new Lotus Emira and a Nissan GT-R.  The Subaru matches what I like.  Low cost, good handling, hard top, no sunroof, manual seats, not drawing a ton of attention.  I'm looking forward for the new design to hit the showrooms soon and will wait out the winter and my post-accident medical treatments, then go buy one.



having grown up in the UK, light nimble cars with a manual transmission is in my blood. My first car was a 1966 MG Midget that I bought at University in 1981. I did a ton of mods and loved that car. Not the fastest but handled well.

I today hanker after the modern equivalent so the Soobie BRZ or the Toyota GR 86 is on my list.

I need to wear out our 2012 Chevvy Cruze first though, maybe it will blow up..:)

I can see that while I have always been on the west side of the pond, we grew up thinking the same.  My first car was a 69 MGB.  Through the years, I've owned a ton of light, low power sports cars.  Started as MGs of various varieties, then a trio of Alfa Spiders.  Various others followed, including track cars.
Title: Re: Car Value Vs Net Worth
Post by: Dicey on February 27, 2022, 09:06:39 AM
About two weeks ago, I took a ferry boat across the Mississippi River to buy a used set of tires and rims.  My 14 year old Honda Accord had 4 different brands of tires and all in bad condition.  The new set has a smaller diameter rim and taller rubber sidewalls.  The taller rubber sidewalls give a softer ride.
Telling the story at work, I was called a cheap bastard by one coworker.  Another coworker commented, he's a cheap bastard and that's why he's a rich bastard.
I love this story, but why were you driving a vehicle with such shitty tires in the first place? You are a rich dude.

In other news, we peeked at used car values recently, inspired by the ad DH saw for an RV of the same make and model as ours. The rig has 100k more miles on it than ours and is in much more worn condition, yet they want 60% more than we paid two years ago. Turns out, all of our vehicles (1 per driver, plus RV) are worth way more than they used to be. This doesn't really have any effect on our car values-to-net-worth ratio, but it was a fun discovery.
Title: Re: Car Value Vs Net Worth
Post by: Apples on January 11, 2024, 10:32:33 AM
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!

We're up to 2 vehicles (plus the farm truck), and based on the price of the 2nd one I thought we'd for sure have a higher %.  The two cars together are 7.7% of our net worth.  Not too bad for a 2009 SUV with 170,000 miles and a 2015 SUV bought 3 years old with 50,000 miles.

Oh this is fun to do a 1 year later update.  I believe our vehicles are now worth about 5.05% of our net worth.  Moving the right direction!

Well it's been a while, but I do enjoy seeing the changes through time.  Sorry to everyone who never wanted to see this thread again!

Our cars:  $28,250   A 2015 Subaru Forester and a 2022 Toyota Corolla
Our net worth:  $936,189
3.02% of our net worth.   Might get it down to 2% by the end of 2024?
Title: Re: Car Value Vs Net Worth
Post by: Arbitrage on January 11, 2024, 11:00:52 AM
Ooh, forgot about this zombie thread, and in the interim I've become even more disdainful of car spending and car culture.

Family of 4
2014 Subaru Outback - $10500
E-bike #1 - $2500
E-bike #2 - $600 (old and needs a new battery)

Net worth - $2.4M

Ratio - 0.57%
Title: Re: Car Value Vs Net Worth
Post by: RWD on January 11, 2024, 11:15:16 AM
8.4%.........

It's fun to come back and look at this again. It's been almost two years and we replaced one car (with an approximately equal value car). Down to 5.1% of net worth.

Replaced our cheaper car with a new EV. Brings us back up to ~9%.

It's been another two years... back down to 5.3%. Same cars as last update, so just a combination of depreciation and net worth increase.
Title: Re: Car Value Vs Net Worth
Post by: GilesMM on January 11, 2024, 11:34:02 AM
We bought a third car (summer convertible) bringing us up to a whopping O.2%.
Title: Re: Car Value Vs Net Worth
Post by: Tigerpine on January 11, 2024, 11:49:01 AM
0.17% based on Kelley's Blue Book value for our car.
Title: Re: Car Value Vs Net Worth
Post by: 2Birds1Stone on January 11, 2024, 11:59:07 AM
1990's Subaru Outback worth ~.1% of our NW =D

We're down to 0% since 2019........soon to be ~5%
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on January 11, 2024, 04:33:30 PM
I have to sheepishly admit this calculation is partly why I sold my airplane. I.e it was just hard to stomach $100,000 sitting in what was effectively a toy. Especially as our net investments (not counting house) was a bit under $1M at the time. Even though that airplane is worth double today what I sold it for.. the S&P500 has done quite a bit better which is where I put the money the moment the check cleared.

Oh I also sold our '89 F250 this week, so that will make a HUGE difference..;)
Title: Re: Car Value Vs Net Worth
Post by: markbike528CBX on January 11, 2024, 07:23:54 PM
0.5%

I'm astounded at the continuing high level our cars are valued at.   
While the ASKing prices at Autotrader are probably high, my 2000 Boxster is about 9 to 11K (paid 15K in 2011), and DW  2011 HHR is listed at about 5 to 7K (we paid her mother 8K, a discount at the time).
Even 199,000 mile HHR is listed as 5K or more.   

The top and even average prices for fairly high mileage examples of each are astounding.  I would have expected them to level out at 2K or so.

Oh crap, if you add in my motorcycles it becomes    0.7%, mostly due to a 1980 Honda CBX, which I've seen listed for ridiculous prices on Ebay.   
Mine is NOT a unused low mile museum example. It is 60,000 miles of 6 cylinder fun and noise, so I expect a lower price when they pry it out of my dead hands.  Not my problem. 
Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on January 11, 2024, 07:58:17 PM
0.5%

I'm astounded at the continuing high level our cars are valued at.   
While the ASKing prices at Autotrader are probably high, my 2000 Boxster is about 9 to 11K (paid 15K in 2011), and DW  2011 HHR is listed at about 5 to 7K (we paid her mother 8K, a discount at the time).
Even 199,000 mile HHR is listed as 5K or more.   

The top and even average prices for fairly high mileage examples of each are astounding.  I would have expected them to level out at 2K or so.

Oh crap, if you add in my motorcycles it becomes    0.7%, mostly due to a 1980 Honda CBX, which I've seen listed for ridiculous prices on Ebay.   
Mine is NOT a unused low mile museum example. It is 60,000 miles of 6 cylinder fun and noise, so I expect a lower price when they pry it out of my dead hands.  Not my problem.

Wow I have bot seen a CBX for about 30 years!
Title: Re: Car Value Vs Net Worth
Post by: SpareChange on January 12, 2024, 07:38:43 AM
KBB says the private party value of my 2007 Focus hatchback is $2,456. Seems high, but I'll take it :). That puts it at 0.48% of NW.

Same car. KBB now says $2,825. Strange world we live in.

.38% of NW.
Title: Re: Car Value Vs Net Worth
Post by: JAYSLOL on January 14, 2024, 02:20:59 AM

I fancy a 911. Have done for years. Maybe when we cross 10M (but likely not). I still get stressed about potential scratches and dinks in my current car, imagine me having a 911 then..lol

Me too.  But seriously, I literally can’t afford one, you definitely could.  Buy a lightly used but not cosmetically perfect one, especially in white or some other colour that doesn’t show scratches and dings very easily.  Just don’t get a black one.  Also, ceramic coating the paint makes it much more difficult to scratch.  I wouldn’t bother on my old Hyundai, but if I owned a 911, I would definitely want it ceramic coated
Title: Re: Car Value Vs Net Worth
Post by: Askel on January 14, 2024, 06:43:46 AM

Car Blue Book Value ~$4500 - a 2004 Toyota Matrix w/122k miles

Man, I miss 2015. All these legendary mustachian workhorses in the prime of their life available for pennies.   

I'm gonna lose at this. Cars alone, we're around 1.5%-2% depending on how you count. 

But without the tractor, they'd have no access to the public road network this time of year, so in reality probably pushing 5% (that damn tractor holds it's value extremely well right now).   

OK, time to suit up and go blow snow....

Title: Re: Car Value Vs Net Worth
Post by: Exflyboy on January 14, 2024, 11:07:39 AM

Car Blue Book Value ~$4500 - a 2004 Toyota Matrix w/122k miles

Man, I miss 2015. All these legendary mustachian workhorses in the prime of their life available for pennies.   

I'm gonna lose at this. Cars alone, we're around 1.5%-2% depending on how you count. 

But without the tractor, they'd have no access to the public road network this time of year, so in reality probably pushing 5% (that damn tractor holds it's value extremely well right now).   

OK, time to suit up and go blow snow....

Oh wait.. We're supposed to count the tractor? Thats added another 0.2% to my vehicle number!
Title: Re: Car Value Vs Net Worth
Post by: Taran Wanderer on January 14, 2024, 12:24:48 PM
What about bicycles and kayaks? Do those count, too?
Title: Re: Car Value Vs Net Worth
Post by: JAYSLOL on January 14, 2024, 01:42:48 PM

Car Blue Book Value ~$4500 - a 2004 Toyota Matrix w/122k miles

Man, I miss 2015. All these legendary mustachian workhorses in the prime of their life available for pennies.   


I miss 2015 for a lot of reasons lol.  Forget cars, I would kill for 2015 home prices and mortgage rates again lol
Title: Re: Car Value Vs Net Worth
Post by: Arbitrage on January 16, 2024, 10:48:07 AM
What about bicycles and kayaks? Do those count, too?

If they're your main mode of transport, sure!

I didn't count my kayaks or mountain bike since they're used almost exclusively for recreation.  Occasionally I'll take the mountain bike somewhere for transportation/errands, but 95+% of my riding is either on or to the mountain.  I did count my e-bikes since that's what I use to get around the city.
Title: Re: Car Value Vs Net Worth
Post by: Just Joe on February 12, 2024, 02:52:54 PM
Don't have time to do the math but we're down one old sedan, up one SUV for the teen going to university. Might keep it a year or so more and then will replace it with another higher MPG vehicle. The SUV (20 years old, almost 195K miles) was a great price from a relative and well kept. Just thirsty. Fortunately teen manages to get by on $20 worth of gas per week.
Title: Re: Car Value Vs Net Worth
Post by: Must_ache on February 13, 2024, 07:58:35 AM
Car Value $21,500
Net Worth $1.83M
Ratio 1.17%

Don't think this statistic is particularly useful.  Whether your net worth is $1,000 or $1,000,000 you need transport.
Title: Re: Car Value Vs Net Worth
Post by: Turtle on February 13, 2024, 08:30:01 AM
I still have the same car I bought new in 2012, the same year this forum started.  It doesn't even have 100K miles on it yet, thanks to the pandemic and switching to WFH.  Worth about 6 to 7K per KBB.

Inherited car is 2017 and worth more.  20-22K due to the low mileage.  It could very well be my last car or nearly so.

Older car gets borrowed by out of town kids when they visit and is worth more to me as a spare/backup than I would get for it selling it at the moment.  Might sell it after I retire, depending. 

My vehicles are between 1-2% of my total net worth, which seems pretty much in line with MMM members
Title: Re: Car Value Vs Net Worth
Post by: mm1970 on February 13, 2024, 04:09:21 PM
We are at 0.1%.  A coworker asked me last week if it wasn't time to get a new car.  Different coworker asked me today if I was going to buy my DS17 a car.

Um, no and no?  Yes, I have the oldest car in the parking lot today (but my boss drives a car from the late 1990s, so he has me beat).
Title: Re: Car Value Vs Net Worth
Post by: spartana on February 13, 2024, 04:20:54 PM
What about bicycles and kayaks? Do those count, too?

If they're your main mode of transport, sure!

I didn't count my kayaks or mountain bike since they're used almost exclusively for recreation.  Occasionally I'll take the mountain bike somewhere for transportation/errands, but 95+% of my riding is either on or to the mountain.  I did count my e-bikes since that's what I use to get around the city.
but how do I value my feet lol. Carless for around 4 years and mostly walked and rode a non-electric mtb everywhere. Got a inexpensive used vehicle last Aug and just sold it yesterday and am back to carless living at the moment. Will be travelling overseas much of this year and won't really need a car and this allows my house sitter to park in my one car garage. So percent of NW is zero unless I count the replacement cost of my shoes and extra food I eat ;-)..
Title: Re: Car Value Vs Net Worth
Post by: footwear on February 13, 2024, 04:24:18 PM
After reading through much of this thread I feel like an absolute loser than me + my wifes cars are worth about 2.5% of our NW...time to get serious about FI!
Title: Re: Car Value Vs Net Worth
Post by: JAYSLOL on February 13, 2024, 05:16:45 PM
After reading through much of this thread I feel like an absolute loser than me + my wifes cars are worth about 2.5% of our NW...time to get serious about FI!

If it helps, we have you beat, probably close to 5% for ours combined.  Pretty amazing to see people at 0.1% and stuff like that.  Of course like 9 years ago, our one car would have been close to 100% lol, so 5% for several cars is an improvement. 
Title: Re: Car Value Vs Net Worth
Post by: Arbitrage on February 14, 2024, 08:16:49 AM
What about bicycles and kayaks? Do those count, too?

If they're your main mode of transport, sure!

I didn't count my kayaks or mountain bike since they're used almost exclusively for recreation.  Occasionally I'll take the mountain bike somewhere for transportation/errands, but 95+% of my riding is either on or to the mountain.  I did count my e-bikes since that's what I use to get around the city.
but how do I value my feet lol. Carless for around 4 years and mostly walked and rode a non-electric mtb everywhere. Got a inexpensive used vehicle last Aug and just sold it yesterday and am back to carless living at the moment. Will be travelling overseas much of this year and won't really need a car and this allows my house sitter to park in my one car garage. So percent of NW is zero unless I count the replacement cost of my shoes and extra food I eat ;-)..

No need to value them.  You've leveled up.