In many conversations I have had over the years, so many people are happy to buy a car over $30k in value, but wouldn’t have the nerve to invest more than $2,000 into shares.
Cars lose thousands of dollars of value fast and its almost guaranteed, aside from the unusual situation covid has put us in where cars have increased in value. This is due to undersupply of cars and the inability to import cars easily or quickly.
Buying shares on the other hand comes with the intention of making a profit, and buying something that is of reasonable value comes with a reasonable probability of making money long term.
So why do people choose to put all that cash into a car that they could spend far less on to get reliability. Yet, shares are a fearful option to take part in, with a much higher likelihood of increasing in value and being an asset.
Certain loss seems to bring on more comfort to some people than the possibility of gain. The same safe and reliable transport method could cost under $15,000 quite easily, allowing room for plenty of investments that have potential.
A low cost reliable car is more than enough to get to work and back to earn ongoing income from employment. Of course, the choice is yours and if it makes you happy then go for it. But if freedom is your goal, assets that increase in value would be a good idea to consider.
A car is useful to create personal income, but this doesn’t have to cost over 10-15k. A parcel of shares can cost very little.
So before you buy a car that is overpriced for what it needs to be and it’s purpose of use, consider the likelihood of increasing your personal wealth through shares.