Wrong. A car is an asset whether it is paid for or not. You shouldn't combine assets and liabilities, it's bad accounting.
It's debt, not savings.
Your debt is $18,000 your asset is $16,000.
Personally, I can't remember the last time I spoke with someone who actually bought a new car for cash.
Nice to meet you, I paid for my last car with cash.
An asset is something that you can PROFIT from if you SELL them, or that generates positive cash flow.
Wrong.
By the time a car is paid off enough to have it qualify as an asset, it's value has typically depreciated so much that it's a negligible asset at best.
But an asset nonetheless. Please tell x5452, he's still confused.
It's almost impossible to regain your investment from an automobile, and they cause a net reduction in your lifetime savings.
Who said it was an investment? Who said it was savings? It's an asset.
Don't be an asset.
Assets
Car
Liabilities
Car Loan
Income
0
Expenses
Car Loan
Gas
Oil
Maintainance