I know Dave Ramsey and others focus (like a laser) on how cars are the biggest item you will buy that goes down in value. Okay, I get that.
But a recent thread (that I can't find at the moment) talking about the amount of non-investment assets got me thinking...(which is a dangerous thing!)..."Hey, what about alllllll the other crap we buy? That's actually a lot more expensive than a car, AND it all depreciate MUCH more."
For example, let's say you buy a 2010 Toyota something or other for about $10,000. In five years, assuming you take decent care of it, you might be able to get $5,000 in private sale (50% reduction).
But all (nearly) all other consumer goods fair even worse.
Take that brand new $1,200 leather sofa you just bought. Do you really think you could get $600 for that in 5 years?? I don't see that happening. People would be trying to buy it for maybe $200 tops.
And what about that $800 dining room table? MAYBE $150 in five years. Probably more like $100.
And that "must have" new handbag for $300. You probably couldn't get $20 for it in five years.
Computers are even worse. Those things become worthless in what, 3-4 years?
So yes I get that cars are the biggest consumer item that loses value, but since they hold up better than nearly everything else, and that "everything else" can get to be quite costly, when you factor in furniture, clothing, electronics, sports equipment, appliances, etc., isn't the more powerful economic message "Only buy crap when absoooooolutely necessary, and then, be one of those people on Craigslist buying the formerly $800 dining room table for $100?