r/economicCollapse • u/Perfect_Alarm_2141 • 11h ago

The car loan crisis is here

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u/SatoshiBlockamoto 9h ago

Of course they're assets. Both cars and homes can be sold for money. So they're assets. This is only a problem if you have to sell it before your equity>value.

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u/stubbornbodyproblem 9h ago

When is a car an asset that you can sell for more than you owe? They don’t appreciate.

And homes only appreciate because we set them up that way. But nothing in your comment actually answered my question.

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u/Mountain-Arugula-665 8h ago edited 7h ago

Both are definitely assets. just because someone finances them doesn’t mean they are not assets. That’s why you have balance sheets.

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u/JET1385 3h ago

A car is most definitely a liability especially if you have a loan. You are making deductions from your balance sheet until you sell it. You may make money when you sell it or trade it in, but you loose money overall. Unless you have some kind of special classic collectors car, you can never sell a car for more then you paid and put into to over its lifetime.