Monday, May 18, 2009
Yes, You Can Drive A Clunker
I frequent a *retail establishment* every week. Let's just say, the part-time, weekend cashier there drives a shiny Toyota Highlander.
Now I know little about cars but that has to cost $400 a month, does it not?
And it begs the question of why someone would work for what must be around $10 per hour - ON THEIR WEEKENDS - so they could drive a nice car to and from a job that simply pays for the Toyota!
[And this ain't a *dumb kid*, let's just say that it's middle-aged government employee in the charge of *dumb kids*!]
Yes, people are self-spoiling Morons who all think they should drive nice cars. They think Toyota SUVs are really for the lumpen masses.
But I also believe that groupthink's at work here. Few even realize that they can in fact drive a clunker. If no one in your social circle has a crappy car, normalcy is simply redefined upward on the expense chart. For crying out loud, about a month ago I had to listen to a disgruntled, quitting busboy at a local bar jawbone about which new car he was going to lease!
Five years we bought our *nice* car. A 2000 Ford Explorer with 50k of mileage for $11,000.
Even if you falsely presumed it worth $0 today, our average monthly cost for the vehicle works out to $178....and dropping.
According to this article written in 2005:
The average car payment is $378 over 63 months.
So figure I've saved a hardly insignificant $10,000 over the average Joe just with my one clunker. [And I have another clunkier clunker!]
Now, the fact that I may have squandered that moolah on leveraged short ETFs is quite another story!
Getting you from Point A to Point B....that's all a car really does.