There’s a cancer that’s been killing us financially. Its cousin to the credit card but not as small.
Its called the auto loan.
We MUST get over our love affair with these depreciating items called cars. Its waaay past time we start putting our money to better uses. Did you know the true cost to own a 2010 Dodge charger is almost $50k over 5 years? And thats IF you kept it for the full 5years and didn’t stupidly roll the negative equity in another depreciating car. You wonder where your kids college fund is? You wonder why you’re stuck in a job you hate? You wonder why you can’t get out of debt?
Lets think about this for a moment. Every car depreciates in resale value, yet the intrinsic value remains completely the same. The value of it getting you from point A to point B is exactly the same in each car that runs well mechanically. And wealthy people judge things from its intrinsic value.
So knowing that every car depreciates in resale value the amount your Dodge challenger depreciates in value is $14k over that 5 year time frame.
Now on the other hand, I go and buy a 2007 Nissan Sentra for $8k cash. That amount is lower than the current street value of $11k BECAUSE I pay cash. The Nissan Sentra depreciates by $5k over that same 5 year period. But guess what? It depreciated $5 from the $11k resale value. So in 5 years the car I paid $8k for I’m able to sell for $6k.
You spent $14k and I spent $2k. We both drove to the same places.
Wake the eff up people. You are not the car you drive but you ARE the stress you carry.
And thats just a dodge compared to a Sentra. Should we talk about a BMW 5 series??
(FYI in comparison, the true cost to own the Sentra is $25k so compared to the total cost to own a charger at $48k is a $23k difference in total!)
NOT highway robbery:
Oh and just for shits and giggles (even though aint a damn thing funny..)