Valuing cars and two-wheelers
A net worth statement is only as honest as its valuations, and a vehicle is one of the places households most often get it wrong — usually by carrying the purchase price forward for years. Resale value today, not the on-road price you paid. A new car typically loses 15-20% in year one and roughly half its value inside five years.
- Liquidity grade
- Medium
- Time to sell
- Days to weeks
- Revalue every
- Year
how fast it becomes cash
realistically
or when something material changes
The number to write down
Resale value today, not the on-road price you paid. A new car typically loses 15-20% in year one and roughly half its value inside five years.
What people get wrong
A vehicle is the one asset on this list that is guaranteed to be worth less next year than it is today. Depreciation is certain; accident and theft risk is what insurance is for.
Keep the history, not just the latest figure
A single current value tells you where you stand. A series of valuations tells you whether the asset is doing anything for you. Record the value each time you check it, with the date, and the trend answers questions a snapshot cannot — like whether this holding has actually beaten inflation since you bought it.
Where FamTally comes in
FamTally stores cars and two-wheelers with a purchase value, a valuation history and a liquidity grade, so your net worth reflects today rather than the day you bought. Add a new valuation whenever you get a fresh figure and the trend builds itself. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How do I value a vehicle?
Resale value today, not the on-road price you paid. A new car typically loses 15-20% in year one and roughly half its value inside five years.
How often should I update the value?
Once a year is enough for an illiquid asset, or whenever something material changes — a nearby sale, a renovation, a policy change.
Should I use the purchase price instead?
No. The purchase price answers a question about the past. A net worth statement is about what you could realise today.