Americans make fun of uneducated brown Doordashers for not understanding car d… · @qquinnsworth · TwKit

@qquinnsworth

Americans make fun of uneducated brown Doordashers for not understanding car depreciation but almost no one in China has any sense of car depreciation. People here psychologically think of cars as a real asset like real estate (which also happens to be depreciating lol). My theory is that 1) there's not really any personal tax returns or exemptions in China so financial literacy is extremely shallow, and this is in spite of the fact that people in China are obsessed with money above anything else and they are on average very numerate 2) The vast majority of personal vehicles being driven in China were purchased in the last 15 years, the second hand market is incredibly immature and in fact distrusted. For most Chinese drivers their car may as well be treated as a fixed asset, psychologically speaking, it provides transportation and "face," without ever having been exchanged on a secondary market. 3) Middle class Chinese people in ordinary cities are prepared to spend an enormous amount of money on a car, the standard being anywhere from six months of annual income up to multiple years. In smaller cities, it is not unheard of to spend more on a car, than a literal house. It is simply psychologically infeasible to face the reality that a car is a depreciating asset.

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