[Toddsterpatriot]

Is this one of those "doom and gloomer arguing with a notion that exists only in his imagination" occasions?

He claimed we were overleveraged. We linked him to the Fed report showing household net worth was $51 trillion. He claimed the government stats were wrong. Then he claimed a car wasn't an asset. Assets are only those things that give you positive cash flow, doncha know?

He's been ranting ever since. He even posted the correct definition and then ignored it. He's a slightly more unbalanced than average doom and gloomer.

[1rudeboy]

Assets are only those things that give you positive cash flow?

Yikes. Must be a huge fan of the Matrix movies.

[x5452]

You clipped half the definition, and responded only to a portion of it calling IT the definition.

[Arthalion]

Assets are only those things that give you positive cash flow,

Actually, he just got his terminology wrong. Assets are things that have positive VALUES...and for most people, cars are NOT assets. My own car has an appraised value of around $16,000 right now, but I still owe $18,000 on it. It's contribution to my net worth is -$2000, making it a liability, not an asset. It's debt, not savings.

Personally, I can't remember the last time I spoke with someone who actually bought a new car for cash. Practically all new auto sales are financed, and most used cars are financed as well, meaning that very few of them qualify as assets. An asset is something that you can PROFIT from if you SELL them, or that generates positive cash flow.

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. When looking at the lifetime economic health of an individual, cars are ALWAYS liabilities. It's almost impossible to regain your investment from an automobile, and they cause a net reduction in your lifetime savings. Unless you're investing in old Auburns and Duesenberg's, cars are one of the worst "investments" a person can make.