are currently choosing between
Year Old Car?
(whether you realize
your making that choice, or not!)
December 7, 2006
hope you find the following simple story to be thought provoking.
question seems so obvious:
3 year old car? or One Million Dollars?
think everyone would say "Door #2" but, from results,
that's not what the majority of people choose over their lifetime!
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.
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.
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!
Story Of Judy and Betty!
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.
is your typical consumer. You probably know someone who fits this
example exactly. Most of the people we know make decisions exactly
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.
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!!
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.
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!
these 45 working years her and Betty remain good friends.
turns 65 and is about to retire. (Betty is getting ready to retire
co-workers throw them a retirement party. There is a lot of tears
and hugs and talk of their retirement plans.
co-worker asks Judy, "Well, I guess you'll be getting a brand
new car to celebrate your freedom from this prison?
pauses to think it over.....
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.
now does she stop to calculate what she's paid over her working
career for her enjoyment of that "fresh off the lot"
are the calculations:
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!!
checks those figures in her calculator. (They can't be right!)
enough, her three year old car has cost her $267,145.00
to add a little salt to the wound she also realizes that she's
made her car payments with "after tax" dollars.
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)
Why didn't someone tell her these figures years ago??
doesn't even dare to think about the mound of credit card debt
she's run up!)
About Quiet 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!
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!
is retiring at age 65 (just like Judy)
cost of the car she's been driving currently is ZERO (she's been
driving FREE cars!)
smart Betty took the whole idea one step further:
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!
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
deposits also grew by the same 3% percent per year, but only increasing
the payments every three years. (just like Judy's car payments)
checked her investments just before she went down to the cafeteria
for her retirement party.
has $1,058,199.00 in her investment account!
in case you missed that)
MILLION AND FIFTY EIGHT THOUSAND, ONE HUNDRED AND NINETY NINE
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!
Is Your Choice?
yr. old car or $1,000,000.00?)
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!!
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!)
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)!!
Are Now Aware
That You Do Have A Choice!
you're about to get our suggestion:
of shameless plug!)
Proven Ways To Drive A FREE Car!", so that you
can learn the proven ways that might let you become "car
of shameless plug!)
for being curious enough to request this report.
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.
you know that the average person spends $6,000-$8,000 per year
to drive a car (2005)
What would do with that extra money?
What make and model of car would you like to drive FOR FREE?
for your time