Should you upgrade your car … or simply keep the one that you have … you know, the old rust-bucket that gets you from A to B but not in any sort of style?
Is the vehicle a TOOL OF TRADE? Is it an ESSENTIAL requirement for your business (e.g. if you are tradesman, you need clean/reliable/fuel-efficient transport)?
Or, is it simply a mode of transport for you and your family (in which case you have MANY transport options to choose from: new v. second-hand vehicles of all shapes and sizes; public transport; etc.)?
If it is simply ‘transport’ then by hanging on to your old ‘rust bucket’ (within reason), you have made a GREAT choice!
A car is NOT an asset, it’s clearly a liability … as Robert Kiyosaki says in Rich Dad, Poor Dad, the definition of an:
ASSET is simply something that puts money INTO your pocket, and a
LIABILITY is something that takes money OUT of your pocket.
The ‘rule of thumb’ is that you should INVEST (into real long-term ASSETS) 75% of your Net Worth: a max. of 20% into your house, and the remaining 5% into your ‘stuff’ …
… once you pay for a new(er) car, it doesn’t leave a lot left for other ‘stuff’, does it?