Vehicles

Here's another thing people buy that I don't think they have a clue on just how expensive it really is. Vehicles.

Let's suppose you have a $15,000 used vehicle on a loan from the bank, a 2005 Toyota Camry. I didn't want to go outrageously high on the price even though I'm sure most of you are closer to the 20-30 thousand range.

The interest on a loan for 5 years would be about $2500.00 total, or $500 per year.

Insurance would be about $800 per year

Depreciation of the vehicle over the 5 years would be $10,000 OR $2000/year

Repairs and maintenance with oil changes and such would be about $300/year

Gas at $2.00/gallon (that's cheap!) with 15,000 yearly mileage, at 20 mpg = $1500/year

Yearly license plate tags about $100/year.

Add that all up and you have $5200/year for your car. That's $14 each and every day.

Now take into account most of you have at least 2 cars, that's $28 each and every day.

Think about what you do with your cars on a given day. Is it worth that much?? Around $30 bucks a day to go back and forth to work and maybe a trip to Walmart?? Holy crap!! Not to mention the fact that your car is LOSING value each and everyday that passes.

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Now lets do the same thing with a different car, a 1999 Toyota Camry, paid in full.

Value - about $4000.00

Interest on the loan would be $0.00 (it's paid for!)

Insurance would be $130/year.

Depreciation over 5 years would be about $1000.00 or $200/year.

Repairs would be about $500/year.

Gas would be the same as above vehicle at about $1500/year.

Yearly license plate tags would be about $50/year.

Now add that all up and you have $2380/year. That's $6.50 per day for your car.
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Hmmmmm, $14.24/day VS $6.52/day for the same thing. A savings of $2817 per year .. on just ONE vehicle. A frickin' trip to Disneyland for Christ's sakes!!! Take that times two vehicles, (the norm), and you have $5634.00 in saving per year!!

This is why I think most of you out there are FRICKIN' NUTS!!!!!!!! You pay over DOUBLE what you need to for your cars! And why? Because of the 'status symbol'? Because of that new car smell?

Both vehicles will provide you with good, safe, reliable transportation. Both vehicles will get you to work everyday. Both vehicles will be sitting in Walmart's parking lot having carts banged into it. Both vehicles will sit in the sun and bake everyday while your at work. Both vehicles will take you on your family vacation out of state each year. The only difference is ONE of them will cost you twice as much! Please note that I used conservative figures too, the difference would be even more dramatic if you used different vehicles.

It would be one thing if vehicles GAINED value (like a house), but they don't!! They drop like a rock! So WHY take a loan out on something that loses money??? I'll tell you why, YOUR STUPID, it's the American way to have this 'vehicle status' etched into our head. Need I say I think that the majority of people with vehicles today are STUPID!!!!

And lastly, some moron out there will say that the cheaper vehicle must only have liability insurance on it since it's so cheap. OF COURSE it only has liability on it!! Why would you pay a grand a year to insure something that's only worth 4 grand??? Did you happen to notice that the price difference between the 2 insurance rates for the 5 years is about what the vehicle is worth? In other words, IF you have the misfortune of totally wrecking your car, you can easily go buy another one with the money you saved by not buying a 'status symbol'. And chances are (like most people), it's NOT going to happen, therefore, you now have the best thing in the world ... money in the bank!!!

Wake up people and please for the love of our Savior Jesus Christ, quit being so damn stupid!!!