While true on the surface (cars do tend to lose their value, and rapidly), think about what the automobile adds for certain kinds of car buyers. For instance, for an HR manager living near a subway line and working out of a downtown office, yes, the car is a depreciating asset. It’s a drain on net worth, and may not necessarily add anything to this person’s life, as she can already get to and from work via public transit.

On the other hand, think of an outside sales rep living in Milton, and most of his sales calls are spread out across the GTA. The car not only adds value by allowing him to get to and from his clients, but can hold its value by not needing excessive maintenance and repair. The ongoing sticker price of the vehicle matters less than whether it will reliably enable him to perform his job.

I used to be cynical when it came to automobiles as well, but I no longer believe it’s fair to knock them for not holding their value. They are a smart investment for the right person.