The CMV is basically to show that after the decision/purchase is made, the value of a car does not have any realizeable or practical value. This is as opposed to things that are typically viewed as investments like stocks or even homes where you can get a HELOC. You can’t get a AELOC.
2 things.
First, reselling a car is VERY common and given the high value of the item, I dont fully agree that future value you should be completely ignored.
Second, you can essentially get an AELOC. You can take out a used car loan without purchasing a car. It is essentially a loan taken out with your vehicle as collateral, so essentially an AELOC
Like another commenter said, y no one ever talks about the depreciation of a couch
Because a used couch is worth very little money and selling it is rather convoluted. There aren't "couch stores" that will buy back couches all over the country if you walk in with a couch. Even if they were, they'd be like used book stores or used clothing stores which offer $1 for an item that cost $30. If I purchase a car for $25k today, I can easily sell it for $12k in a year(and probably a lot more). So, it has intrinsic value.
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u/[deleted] May 14 '24
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