You are currently choosing between

One Million Dollars

or a

3 Year Old Car?

(whether you realize your making that choice, or not!)

Thursday, December 7, 2006

Hello

We hope you find the following simple story to be thought provoking.

This question seems so obvious:

A 3 year old car? or One Million Dollars?

You think everyone would say "Door #2" but, from results, that's not what the majority of people choose over their lifetime!

Below you'll find a fictitious story of 2 young women. These women are good friends and co-workers, but they made 2 very different choices!

The first, "Judy", is the perfect example of how most people buy, (or finance) their new cars.

She has fallen prey to the marketing and advertising and is putting herself in constant debt to finance her "lifestyle dreams". You know, a nice big house, a parade of new shiny cars in her driveway, a good steady, reliable job, a supportive spouse and 2.4 fabulous kids. Just as advertised, the "Good Life.

Our story will contrast her "typical" thinking with that of her co-worker "Betty". Unlike Judy, Betty thinks outside the box. She thinks about life much differently that most. Whenever she finds herself acting or making decisions exactly like the majority of the population she stops and questions herself. She makes her own decisions based on her own research, checks things out for herself and tries to question all the marketing she is bombarded with. She enjoys pushing herself to try and "think further outside the box". She doesn't like conforming and falling in line to become comfortable as just one the herd!

The Story Of Judy and Betty!

Judy and Betty both get good jobs at 20 years of age at the same company. Over the next many years they both receive raises and bonuses and are promoted up through the company. However, things end up much differently outside of work.

Judy is your typical consumer. You probably know someone who fits this example exactly. Most of the people we know make decisions exactly like Judy.

After a few months on the job Judy sees an exciting car commercial and decides she is financially stable enough to go out and get her first "new" car. She puts up a small down payment and begins making monthly payments of $300 on her symbol of new found financial independence and status.

The first day she drives into the parking lot at work her co-workers gather around to admire her shiny German made treasure. She is heaped with admiration and prestige. Even Betty feels a little twinge of jealousy when she sees Judy's car. Betty tries not to be jealous. She really likes Judy and is happy for her. And that new car smells great!!

3 years later Judy trades her car in for a brand new model. Again, she is greeted by admiration and compliments as she brings it to work. This new car costs a little more as the price has risen about 3% per year in the last 3 years.

Every 3 years for 45 years Judy performs this typical consumer ritual. She feels ecstatic every time she gets the keys to her new car, (every 36 months) and the monthly payments have become a habit. Like any habit, she really doesn't notice the monthly amount anymore. Occasionally she remembers the "good ole days" when she paid only $300 per month. Then again, she is making more now than she was back then!

Over these 45 working years her and Betty remain good friends.

Judy turns 65 and is about to retire. (Betty is getting ready to retire also)

Their co-workers throw them a retirement party. There is a lot of tears and hugs and talk of their retirement plans.

One co-worker asks Judy, "Well, I guess you'll be getting a brand new car to celebrate your freedom from this prison?

Judy pauses to think it over.....

At age 62 she purchased her 14th new car since she began this job. She is currently driving a 3 year old car. She's not sure she has enough retirement money saved up to continue with these high monthly car payments. Maybe she'll have to drive this car a little longer, until the repairs costs and maintenance costs exceed the monthly payments on a newer model. She had read that concept in a car magazine recently. Or maybe she'll look into leasing. Or maybe try and buy a new car every 6 years while she's retired. Or maybe try and find a cheaper used car! She's really not sure.

Only now does she stop to calculate what she's paid over her working career for her enjoyment of that "fresh off the lot" car smell!

Here are the calculations:

Starting at $300.00 per month payments and increasing every three years by 3% per year (cost of living), her current three-year old car has cost her $267,145.00!!

She checks those figures in her calculator. (They can't be right!)

Sure enough, her three year old car has cost her $267,145.00

Just to add a little salt to the wound she also realizes that she's made her car payments with "after tax" dollars.

(Again, reluctantly, she punches some numbers into her calculator...)

To pay for those cars she had to earn more than$400,000.00 (by today's tax code)

OUCH!!!! Why didn't someone tell her these figures years ago??

(She doesn't even dare to think about the mound of credit card debt she's run up!)

What About Quiet Betty?

Betty dreamt about enjoying all the nice things and the "good life" just like Judy, but like I said earlier, Betty thinks outside the box. She had a plan!

Before she started with monthly mortgage and car payments she did A LOT of research and reading. She discovered that there were legal, little known ways to drive a FREE car. She did some work, made the effort, and managed to get herself a free car, or get paid to drive her own car for the entire length of her 45 year working career. It took some real work on her part, and she had to change methods a few times, but it has paid off!

Betty is retiring at age 65 (just like Judy)

The cost of the car she's been driving currently is ZERO (she's been driving FREE cars!)

And smart Betty took the whole idea one step further:

Instead of paying the bank or the dealership those monthly car payments, she invested the money! Every single month she wrote out a check that was equivalent to Judy's car payment, except she wrote it to herself, and invested it!

She invested that money in a safe 6% per year average investment. (There were ups and downs but over the 45 years she ended up averaging 6%).

Her deposits also grew by the same 3% percent per year, but only increasing the payments every three years. (just like Judy's car payments)

She checked her investments just before she went down to the cafeteria for her retirement party.

She has $1,058,199.00 in her investment account!

(Just in case you missed that)

ONE MILLION AND FIFTY EIGHT THOUSAND, ONE HUNDRED AND NINETY NINE DOLLARS!!

Judy doesn't seem to be having a great time at her retirement party.

On the other hand, Betty's co-workers have rarely seen Betty in such a good mood!

What Is Your Choice?

(3 yr. old car or $1,000,000.00?)

Judy had never taken the time to realize she might of had other options. She didn't consider that there even was a choice. 99% of the population doesn't know there could be another option!!

Becoming like "Betty" takes effort. Nothing worthwhile in life is ever free! You can either pay monthly for a car for your entire life, or you pay by gaining knowledge, taking action and putting in some work and effort. (and then invest your savings!)

Hopefully this story has you thinking about all the money you could save if you could figure out how to eliminate car payments (without eliminating your car)!!

You Are Now Aware That You Do Have A Choice!

And, of course...

you're about to get our suggestion:

(beginning of shameless plug!)

We have published"16 Proven Ways To Drive A FREE Car!", so that you can learn the proven ways that might let you become "car payment free".

(end of shameless plug!)

Thanks for being curious enough to request this report.

Realistically, you might not be 20 years old buying your first brand new car, and you probably wouldn't invest 100% of the money you save.

But...

Do you know that the average person spends $6,000-$8,000 per year to drive a car (2005)

Ask yourself:

What would do with that extra money?

What make and model of car would you like to drive FOR FREE?

Thanks for your time

Free-Car-Guru.com