I did a posting the other day about how important it is to track your net worth. I explained you use a spreadsheet and tally all your assets and all your liabilities. Assets minus liabilities is your net worth.
In that same video I mentioned about putting a car on the asset column. I received a comment about that maybe not being the right thing. I also did a video today for this same very topic.
Here is why I put the car as an asset.
Your car carries some monetary value. It can be sold for some price. Maybe $100. Maybe $25,000. But there is some value. Your car can be turned into cash.
You may have a loan on your car. If that is the case, then this obviously diminishes the equity in your vehicle. And, the fact that you have to pay gas an insurance also diminishes the perceived value of a vehicle.
But the fact that your car can be sold for some dollars makes it an asset.
It is not an appreciating asset or an income producing asset which are much more desired. But it is an asset.