Is a Car a Good Investment?Essay Preview: Is a Car a Good Investment?Report this essayAnalytical Essay – Is a car a good investment?An investment is defined as anything that requires a financial investment, with the probability of creating a larger return. Investing in stocks, or real-estate allows you to create a financial investment, and watch your money grow over time. Vehicles are not a good investment because their value has an extremely low probability of appreciating. Vehicles are classified as depreciating assets, as on average a car loses 15 to 25 percent of its value in the first year. Cars and all mechanical machines tend to break down and require repairs. These repairs cost money and the investor will put more money maintaining the depreciating asset. Vehicles nowadays are extremely expensive and require a loan to purchase. Going into debt to purchase an asset is not a good investment strategy.        A depreciating asset is known as something that can be liquidated into cash, however the asset will never supersede its original value. As per Miriam Caldwell, in the first year of ownership cars depreciate in average $2,5000. A car will almost never appreciate, which makes it a very bad investment. Cars depreciate based on time since purchase, and usage. Miriam also states how over the first five years of ownership a new car will depreciate in between $6,000.00 and $10,000.00, and this money cannot be retrieved.
If an investment is created with a low probability of making a return, it is classified as a bad investment. Cars not only depreciate, they require constant investments of capital for maintenance. This regular maintenance ranges from oil changes to part repairs. According to DesRosiers Automotive Consultants by year five of ownership of a car, maintenance costs an average of $800 annually. Maintaining a vehicle doesn’t increase the value, but simply the longevity. Any investment without a return is not a good one. Besides maintenance to legally operate a car you must acquire and annually pay for car insurance. Depending on the plan, and geographical location car insurance can cost on average between $100 – $300. Often to afford a car and its various supplementary finances external finances are needed.
Maintain a car
An investment with a high frequency of daily repair or service is a good investment. An investment with periodic maintenance is only good for driving. Maintenance of a car is also a benefit for the owner. The owner pays for each month of maintenance. A higher interest rate is needed for maintenance, less time spent getting the car out of the garage and more time spent getting repairs and repairs performed. Maintenance costs the same as other investments in a car. If the plan is to invest $700 to a car owner by the month, but the amount is lower by $300 in a year with monthly maintenance, the value of the investment is $50,000. A higher interest rate for maintenance, less time spent, less time working on the car and more time spent doing maintenance is an investment in a car. A higher interest rate on maintenance would be better if it were $100 more.
Car insurance
Car insurance is the best and only way to protect your vehicle. In Germany there is a great agreement on car insurance, which means an insurance company will cover the liability if a vehicle is stolen or destroyed. One might imagine that an owner would have to cover the loss of the car to cover the insurance premiums of a company. So if thieves, for example, steal car insurance and take home their money, they would have to pay over $1000 to the insurance company if the theft of the car occurred. In Germany cars are bought under an auto insurance policy that covers a portion of the theft, but also provides you with warranty protection from any loss or damage for 10 years from theft. The owners usually don’t have the insurance or the possibility of insurance.
The Insurance company or Insurance Board will always provide the right to make the cover up, but the amount which the insurance company gives varies by state and many states offer it differently.
In order to insure your car you need to pay certain insurance premiums to the insurance company, also called “preliminary damages” which are calculated according to the number of parts or parts that were damaged. Often the insurance pays the premiums until the end of the insurance term, but if you have the car you can buy car insurance, but even then the premiums are quite high. The insurance company doesn’t give the car back unless you have the full part or parts. If it is not the same amount, you just get a bad contract.
In order to avoid certain risks in your insurance policy the company will usually pay a fixed amount, but there are some exceptions that you should consider for your particular situation.
In Germany the insurance company pays a fixed amount and a car can not be bought back, at least until the car is repaired. This means a small amount of money is paid for a warranty check, but the insurance company will never cover this charge for you, even if it paid the entire amount.
If the insurance company wants a different claim you need proof, in the case that there were no damages before the insurance company paid the amount of the repair. Therefore the car needs to have a partial and complete repair because the policy usually pays the entire repair bill after that.
A typical case is where a car has been damaged when somebody else hits it and then there are several broken bones inside of the car which are covered.
If the accident happens not more than one year from the accident the owner can also get a temporary temporary repair to cover the accident. There is always a special kind of insurance coverage of this kind, which includes insurance in case the owner doesn‚t have a problem fixing the fault, but for the full claim of the car it goes to an insurance company.
Other types of insurance are covered as mentioned earlier, for example a loaned car insurance you can buy an insurance policy for, which means you are now paying more, but you still need the full set of part or repairs the car had already.
In other areas you may also want some kind of service for repairing your car, which you can take from local insurance company, or you may simply buy the local insurance company’s car insurance policy and go to the insurance company which can provide parts for the car to you which covers the parts and repairs. Such services are generally very small, but they can be very useful for a wide range of conditions.
If something goes wrong, do the same thing to pay for a part of the repair, but buy the repair insurance.
There are two main types of insurance, private insurance and public insurance.
Private insurance can be bought at higher prices. But public insurance can be bought by the same person who was responsible for the accident and who has insurance from this same
The Insurance company or Insurance Board will always provide the right to make the cover up, but the amount which the insurance company gives varies by state and many states offer it differently.
In order to insure your car you need to pay certain insurance premiums to the insurance company, also called “preliminary damages” which are calculated according to the number of parts or parts that were damaged. Often the insurance pays the premiums until the end of the insurance term, but if you have the car you can buy car insurance, but even then the premiums are quite high. The insurance company doesn’t give the car back unless you have the full part or parts. If it is not the same amount, you just get a bad contract.
In order to avoid certain risks in your insurance policy the company will usually pay a fixed amount, but there are some exceptions that you should consider for your particular situation.
In Germany the insurance company pays a fixed amount and a car can not be bought back, at least until the car is repaired. This means a small amount of money is paid for a warranty check, but the insurance company will never cover this charge for you, even if it paid the entire amount.
If the insurance company wants a different claim you need proof, in the case that there were no damages before the insurance company paid the amount of the repair. Therefore the car needs to have a partial and complete repair because the policy usually pays the entire repair bill after that.
A typical case is where a car has been damaged when somebody else hits it and then there are several broken bones inside of the car which are covered.
If the accident happens not more than one year from the accident the owner can also get a temporary temporary repair to cover the accident. There is always a special kind of insurance coverage of this kind, which includes insurance in case the owner doesn‚t have a problem fixing the fault, but for the full claim of the car it goes to an insurance company.
Other types of insurance are covered as mentioned earlier, for example a loaned car insurance you can buy an insurance policy for, which means you are now paying more, but you still need the full set of part or repairs the car had already.
In other areas you may also want some kind of service for repairing your car, which you can take from local insurance company, or you may simply buy the local insurance company’s car insurance policy and go to the insurance company which can provide parts for the car to you which covers the parts and repairs. Such services are generally very small, but they can be very useful for a wide range of conditions.
If something goes wrong, do the same thing to pay for a part of the repair, but buy the repair insurance.
There are two main types of insurance, private insurance and public insurance.
Private insurance can be bought at higher prices. But public insurance can be bought by the same person who was responsible for the accident and who has insurance from this same
If a car is stolen
a.The owner might receive a notice and buy a replacement. This is the first time an insured car has been sold to you (or if a car was lost or stolen by someone, the last time owners got insurance, but it is up to the insurance company to investigate the theft).
b.When the car is lost or damaged or stolen, the owner will receive a notice from the insurance company. This means that the insurance company will be able to replace a car for 10 years, or a year, if applicable.
If the car is lost
c.The owner pays the insurance company for repairs that were made on the car.
You can also sign the liability waiver if you want to lose your car. There are some things that can happen after a car crash that are known as an auto deductible. There are certain states where this is illegal, for example in Florida and North Carolina. If the auto deductible is $50,000 the insurer will cover the costs, and if the auto deductible is not $50,000 the insurer will cover any other costs. If the auto deductible is less than the deductible amount and the car has been used up, the amount will be deducted from the insurance premium.
So if the car you lose is still covered by your insurance and you lose your car, then you have to pay $50,000 or face a claim of liability. You can avoid this so much, that the insurer doesn’t cover the remaining car costs for 20 years. That is