So I was thinking the other day after my car became unable to drive because of a simple coolant leak. (No big deal, I had 2 other cars that were perfectly fine to drive) how much freedom I have gained over the years. My thoughts wandered on how many freedoms people give up not knowing or sometimes caring that they are giving up freedoms they probably didn't know they had. For example. If my car was my only mode of transportation and I needed it I would either be stuck trying to find a part which could take all day. Relying on other people or services if they are available or Trying to find a mechanic which again takes more than a day to get your car back and could cost you alot. Yet I didn't need to do that, why? Because I had learned my lesson from the past to have a back up plan. One of my back up plans is another car. Then I started to think about each if my cars and the freedoms they allow me. My Van allows me to travel with my family. My Van also has alot of storage space to make travel easier. My car gives me a second option of travel. My car is more economical to take on long distances. It's great for dates with my wife and the ocaisional getaway or work travel. Then there's my Durango. It's 4X4 allows us to go on the unpaved roads. It gives us the freedom to explore further than our other two cars can take us. Then we have the snowmobile and the ATV. On snowy days we can go sledding and have a mode of transportation to get us up the hill.
I bring this up because some of you out there may be considering buying a brand new vehicle such as this one.
Now we all come from different financial backgrounds and if you are the person who can afford to pay off this truck in full and have at least 3 times that amount in savings, clap clap, you can stop reading.
For some a job and good credit is all they have to but this truck and they want it. You are the ones I'm directing my message to.
The total value of all that I own is 21.400 dollars. Less than half of the value of this SINGLE truck. That is the ATV the car the van the Durango and the snowmobile. All of Which has given me more freedom then this single truck would. I also own all 5 vehicles. There are no contracts no liens no risk of repossession. I have the titles in hand.
If a person who quite honestly sucks at money management bought this with a car loan and a job to back it up. They would be required to pay an additional 3150 in taxes, over 300 in registration. By the time your done out the door this 45k truck will end up costing you 883 bucks a month. With a required minumum insurance dictated by your finance company your total cost without fuel is around a grand month. 12 grand a year
So first 3 freedoms you have lost
1.Paying alot in taxes
2.Losing a sizable portion of your paycheck
3. Not getting to chose what type of car insurance you want. Your finance company chosrs it's minumum.
A year later the economy has a hiccup. You lose half your hours at work and cannot afford the cost of gas in your truck plus the payment so you chose to borrow someone's car to save money.
Freedom you lost
The value of the 880 dollars
The truck itself because your in survival mode
Relying on others for there mode of transportation because you cannot afford yours
A few months later your work has hit rock bottom and they start laying people off. You get a pink slip
Freedoms you have lost
All the value you have put into your truck which is around 14 grand.
The freedom to keep the truck
The next payment of 880
mode of transportation
Risk of bad credit.
So let's take another situation.
You buy a reasonable older truck for 8 grand on a no interest credit card offer.
You have cash to offer at the dealership you get 800 dollars off.
Within 10 months at the same 880 payment your credit card will be paid off. No interest will be charged and you'll have a small emergency fund of 1100 dollars.
You'll be able to chose what insurance you want. You chose liability and pay only 20 dollars a month. Within a year of driving you've saved around 1200 dollars
When your hours are cut back you have 880 a month more.
If there's a job liss there is no risk of repossession.
So again where are your freedom priorities. Car loans reduce freedom!
No comments:
Post a Comment