Cars as Quasi-Assets

A car provides transport and has a resale value. Even when its nominal price rises, age, mileage, maintenance and transaction costs affect its economic return. Compare identical model, trim, production year and condition. Factory, advertised and completed-sale prices are different observations; eligibility for a particular sale is not universal access to that price. Opportunity cost includes money tied up and the cost of alternative transport. Do not treat a price list as proof that an owner can sell immediately at that amount.

Worked example (hypothetical)

A car bought for 8 billion rial sells for 9 billion after a year. Maintenance and transaction costs total 400 million, leaving a 7.5% nominal net gain. At 20% inflation, real return is 1.075/1.20 − 1, about −10.4%.

Check your understanding

What distinguishes consumption value from investment return? The transport service you used is valuable, but it is not an extra cash sale receipt.

Sources, reviewed 5 October 2026

• IMF: Inflation, Prices on the Rise
• Investment Products