THE DEPRECIATING ASSET

I do not know which book taught me this (For some reason: I believe that it was Napoleon Hill’s Think and Grow Rich), but it is around the value of a car. A car is depreciating asset. The smart person does not lease cars perpetually. The smart person buys a vehicle and keeps it as long as possible. This is advice that I have not really followed … rationalizing my new car leases by getting 1 year old cars or by convincing myself that because of my job, I cannot afford the downtime. Until now. I have a BMW 328 that just turned 7. My eyes keep getting drawn to the great ‘end of year’ deals as 2006 models come in and 2005 models get blown out. But, I have resisted and after doing a few maintenance repairs last week, I will continue to resist until next summer (At least). There is something liberating about not having that $750 per month car payment … and I like it. But, when I do change, I think that I know which car it is – the Acura TL . Why? Because of the horsepower or the handling or the body style? No, it has Bluetooth.

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