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Old 04-15-2007, 09:10 AM   #18
Undertoad
Radical Centrist
 
Join Date: Jan 2001
Location: Cottage of Prussia
Posts: 31,423
In almost all locations, you use a car to live your life. You can't go to work without one, you can't shop without one, you can't do most social activities.

Furthermore, you're confused by the term "capital expenditure" - because it's not an economics term, it's an accounting term. It's actually used to describe assets that are NOT disposable, which are capitalized long-term and considered investments because their value takes years to totally diminish.

In other words, it means the exact opposite of what you think it does. But you're right, all accountants would capitalize vehicles for the depreciation.
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