Fixtures are things that are physically attached to a structure such as a bathtub.
Home equipment such as an air conditioner
Durables vs ConsumablesConsumables are things such as food, beverages, cosmetics, toiletries and electricity that are used up as you realize value from them.
Durables vs NondurablesNondurables include consumables and any good that has a useful life of less than 3 years. For example, clothing and footwear is considered nondurable.
Durables vs CapitalCapital is property that can be reasonably expected to generate future value. This includes anything that you can invest in such as buildings, land, companies and gold. For example, houses and condominiums sold to consumers aren't considered a good but are a type of capital. Capital is viewed as a store of wealth as opposed to a good that you purchase to use.
NotesIn some cases, consumer durables are bought on credit. This allows consumers to pay for goods as they realize utility from them. For example, a vehicle that is purchased on a 5 year loan where the useful life of the vehicle may approach 10 years.In periods of economic decline or uncertainty consumers can defer purchases of consumer durables. For example, a consumer may defer a purchase of new furniture in a recession. As such, firms that sell consumer durables are particularly exposed to economic conditions.
|Overview: Consumer Durables
Tangible consumer goods that have a useful life of more than 3 years.