# What is the value of your car relative to the value of your home? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [July 7, 2015, 3:10pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481 "2015-07-07T15:10:39Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\ **Post date:** [July 7, 2015, 3:10pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/1 "2015-07-07T15:10:39Z")
Priorities, priorities, priorities. An old established mantra for financial responsibility. But, hey it’s a free country, and everyone is free to live their life as they please. I know several people that seem to have this ratio out of whack. I don’t know what the magic number is, but I would suspect if your car is worth more than 20% of your home value, then your priorities aren’t consistent with financial responsibility. I know someone that drives a loaded 2015 Tahoe worth about $65k. They live in a mediocre 3BR 2BA house worth about $130k. Married with 2 kids. When your vehicle is about 50% of your home value, something’s not right. The car I drive is worth about 6% of the value of my home. ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [July 7, 2015, 3:16pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/2 "2015-07-07T15:16:29Z")
Car is 1.66% of the value of the house. Probably the highest I got was 20% in the 80s when I had a house that wasn’t worth that much and a brand new car. ---
**Author:** ![lazybratsche](https://avatars.discourse-cdn.com/v4/letter/l/ba8739/32.png) [@lazybratsche](https://boards.straightdope.com/u/lazybratsche)\ **Post date:** [July 7, 2015, 3:19pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/3 "2015-07-07T15:19:02Z")
For renters here, the easiest comparison would be to monthly rent. In which case my car is currently worth about 4-5 months’ rent. Off the top of my head, the highest it’s ever been is when I had two cars worth about 20 months’ rent (before I sold the newer car and moved to a more expensive apartment). ---
**Author:** ![MandaJo](https://avatars.discourse-cdn.com/v4/letter/m/ac91a4/32.png) [@MandaJo](https://boards.straightdope.com/u/MandaJo)\ **Post date:** [July 7, 2015, 3:20pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/4 "2015-07-07T15:20:20Z")
I don’t think you can use ratio very effectively here. I know a guy who lives in a pretty reasonable house he paid like $40K for and drives a 5-year old Corolla. That’s hardly extravagant, but the car is probably worth more than 20% of his home value. The problem with your system is that real estate prices vary so much by location but car prices are relatively stable. ---
**Author:** ![lieu](https://avatars.discourse-cdn.com/v4/letter/l/c2a13f/32.png) [@lieu](https://boards.straightdope.com/u/lieu)\ **Post date:** [July 7, 2015, 3:25pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/5 "2015-07-07T15:25:53Z")
I’m not sure how your ratio is indicative of financial priorities or a lack thereof. If you live in a $750,000 house and drive a $150,000 car and they’re both paid for, you’re borderline irresponsible? ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [July 7, 2015, 3:27pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/6 "2015-07-07T15:27:17Z")
Technically, my car is 66% of what I paid for my house, but I bought the house 35 years ago and it’s appreciated, while the car has depreciated. I’m estimated around 13% now. ---
**Author:** ![DCnDC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dcndc/32/2842_2.png) [@DCnDC](https://boards.straightdope.com/u/DCnDC)\ **Post date:** [July 7, 2015, 3:27pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/7 "2015-07-07T15:27:32Z")
> [@MandaJo](#): > > The problem with your system is that real estate prices vary so much by location but car prices are relatively stable. …and the _cost_ of a loaded 2015 Tahoe may be $65k, but that’s not what it’s _worth_. ---
**Author:** ![Johnny\_L.A](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnny_l.a/32/1084_2.png) [@Johnny\_L.A](https://boards.straightdope.com/u/Johnny_L.A)\ **Post date:** [July 7, 2015, 3:28pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/8 "2015-07-07T15:28:14Z")
About 4.3%. ---
**Author:** ![Nava](https://avatars.discourse-cdn.com/v4/letter/n/da6949/32.png) [@Nava](https://boards.straightdope.com/u/Nava)\ **Post date:** [July 7, 2015, 3:29pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/9 "2015-07-07T15:29:51Z")
> [@MandaJo](#): > > The problem with your system is that real estate prices vary so much by location but car prices are relatively stable. Primary residence, worth 6x as much as car. Secondary residence, 20x as much. Similar sizes, but one in a 4K village and the other in a 4M city. ---
**Author:** ![enipla](https://avatars.discourse-cdn.com/v4/letter/e/54ee81/32.png) [@enipla](https://boards.straightdope.com/u/enipla)\ **Post date:** [July 7, 2015, 3:32pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/10 "2015-07-07T15:32:15Z")
Right now, the ratio is ‘good’. Home is worth ~$350,000. Three older cars worth not much. We drive 'em for at least 10-15 years. We are both about due for new cars though. So it’s going to really change the numbers. ---
**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\ **Post date:** [July 7, 2015, 3:33pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/11 "2015-07-07T15:33:03Z")
> [@Omar\_Little](#): > > I know someone that drives a loaded 2015 Tahoe worth about $65k. They live in a mediocre 3BR 2BA house worth about $130k. Married with 2 kids. When your vehicle is about 50% of your home value, something’s not right. Maybe not. A house that costs 750K in San Francisco may only cost 150k in the Midwest. The Tahoe will cost much closer to the same in both places. ETA: and the cheaper housing may be what allows the purchase of the expensive vehicle. And how are you defining mediocre? ---
**Author:** ![Living\_Well\_Is\_Best\_Revenge](https://avatars.discourse-cdn.com/v4/letter/l/6bbea6/32.png) [@Living\_Well\_Is\_Best\_Revenge](https://boards.straightdope.com/u/Living_Well_Is_Best_Revenge)\ **Post date:** [July 7, 2015, 3:43pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/12 "2015-07-07T15:43:24Z")
Mine is around 10%. ---
**Author:** ![Roderick\_Femm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/roderick_femm/32/14875_2.png) [@Roderick\_Femm](https://boards.straightdope.com/u/Roderick_Femm)\ **Post date:** [July 7, 2015, 3:50pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/13 "2015-07-07T15:50:58Z")
I drive a real beater, a '97 Kia Sportage, very useful for DIY pickup, chores, volunteer tree pruning, etc. Relatively low mileage, interior is not bad, but the body is pretty rough. Using [kbb.com](http://kbb.com) I might be able to get $2K for it. I live in San Francisco, so even my little 3BR 2BA house would probably bring $750K or more. If I have my decimals right, that is 0.0026%. ---
**Author:** ![Anaamika](https://avatars.discourse-cdn.com/v4/letter/a/5f9b8f/32.png) [@Anaamika](https://boards.straightdope.com/u/Anaamika)\ **Post date:** [July 7, 2015, 3:52pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/14 "2015-07-07T15:52:24Z")
I bought a brand new car around 3 years ago, but I rent, so where does that put me? ---
**Author:** ![Tangent](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tangent/32/3098_2.png) [@Tangent](https://boards.straightdope.com/u/Tangent)\ **Post date:** [July 7, 2015, 4:37pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/15 "2015-07-07T16:37:59Z")
> [@Roderick\_Femm](#): > > If I have my decimals right, that is 0.0026%. 🙂 Your ratio is about 0.0026, which makes your percentage about 0.26%. ---
**Author:** ![The\_Stainless\_Steel\_Rat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/the_stainless_steel_rat/32/5727_2.png) [@The\_Stainless\_Steel\_Rat](https://boards.straightdope.com/u/The_Stainless_Steel_Rat)\ **Post date:** [July 7, 2015, 4:54pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/16 "2015-07-07T16:54:05Z")
> [@Anaamika](#): > > I bought a brand new car around 3 years ago, but I rent, so where does that put me? Without Equity? 😉 😛 Yeah, given that homes tend to appreciate and cars depreciate, the ratios will change over time. I have a car that I bought for $30,000 new (Chevy Equinox) and bought my house (3Br/2Bath) for $105,000 in 1997. Today, the car is five years old and has had a couple of minor accidents, so I might get $10,000 for it, but the house (according to the taxman) is worth $147,000. So quite a change in ratios. ---
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [July 7, 2015, 5:03pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/17 "2015-07-07T17:03:29Z")
According to Zillow and Kelly Blue Book estimates, our car is worth about 0.11% of the value of the house we rent. So far, I think I’m winning? ---
**Author:** ![lieu](https://avatars.discourse-cdn.com/v4/letter/l/c2a13f/32.png) [@lieu](https://boards.straightdope.com/u/lieu)\ **Post date:** [July 7, 2015, 5:27pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/18 "2015-07-07T17:27:33Z")
The house should be worth about 13x what car is, so 7.7%. ---
**Author:** ![corkboard](https://avatars.discourse-cdn.com/v4/letter/c/e9bcb4/32.png) [@corkboard](https://boards.straightdope.com/u/corkboard)\ **Post date:** [July 7, 2015, 5:28pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/19 "2015-07-07T17:28:43Z")
I bought my house and car in the same month in 2008. The car, new, was $26,000. It now has about 150,000 miles on it and is probably worth around $4,000. The house I purchased for $562,000 and according to Zillow, is now worth about $640,000. So at the time of purchase my car was worth about 4.6% of my home; now it’s about .6%. ---
**Author:** ![El\_Kabong](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/el_kabong/32/496_2.png) [@El\_Kabong](https://boards.straightdope.com/u/El_Kabong)\ **Post date:** [July 7, 2015, 5:30pm UTC](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481/20 "2015-07-07T17:30:50Z")
Ballparking it, mine appears to be 4.7%. Would have been around 8% when I bought the vehicle. On the road to where I used to work, there was house owned by a family of truck drivers. Basic manufactured house, and pretty old to boot. One of the family members had a late-model Maserati that he would park in the front yard. I’m guessing the percentage was 50% or more on that one. [Next page](https://boards.straightdope.com/t/what-is-the-value-of-your-car-relative-to-the-value-of-your-home/724481.md?page=2)