Millions lost buying new. For purposes of discussion we will be using cars/vehicles as an example.
You buy a new car on time (monthly payments).
These are some of your excuses/justifications:
1) Safer vehicles-all the vehicles are built tougher, right?
No, which would you rather drive a vegetable can or a pop can?
2) More comfortable with bucket seats, right?
No, there is no average or normal size persons, bucket seats are built only for those people. Bucket seats cause a lot of low back pain and sciatica problems.
3) Higher fuel mileage:
A) Wont cost so much money per mile to operate, right?
No, at least not after the first 6 months. Most new vehicles have an installed chip after so many miles they drop engine performance, otherwise the engines would be junk in 1 year.
B) Will save gasoline for other uses, like the war efforts, right?
No, there is plenty of oil but there aren’t quite enough refineries. Partly this is because of the “not in my back yard syndrome” and partly because of the regulations and partly because restricted supply artificially boosts the price.
The gas you save here doesn’t reflect over there.
C) Won’t have to buy so much fuel from foreign countries, right?
No, see above and most people who buy new cars for the fuel savings just drive more, usually a lot more.
4) Cleaner emissions, less smog, safer to breath, better for the environment right?
No, are you talking about the carbon, which is a fertilizer once it hits the ground or are you talking about those horrible additives added to the fuel, you know the ones, their the ones poisoning the ground water. That stuff goes right through the carbon catchers.
5) A) New means no breakdowns, the radio and all accessories will work, no mechanic bills, right?
No, I think you need to talk to more new car owners, look around the roads, most of the broken down vehicles are brand spanking new.
B) My old rig is nickel and dimeing me to death.
Oh really? You fail to take care of little maintenance issues and it costs you a few hundred a year? Try removing the engine to change the spark plugs, or installing computer brain boxes at $2400 a pop, plus labor because you cannot do it yourself, that is a virtual guarantee.
6) I pay a little every month for a lot of good-looking transportation:
A LITTLE! You had better keep reading.
A) I can’t afford to walk in and pay cash; this gets me what I want right now, right?
Do you have any concept of tomorrow?
B) I can afford this car only if I make payments, right?
Why this car?
7) My neighbor/father-in-law/others have new cars, if they can afford them so can I, right?
Can they afford them? Have you truly looked below the surface at these people ` you admire? That’s what I thought.
8) A new car is a necessary evil, in my business. A new car shows people/clients I am doing well, isn’t that right?
No, read on.
A new car bought on time has some basic expenses:
1) Monthly payment, depending on vehicle, interest rates, etc., $400.00 to $800.00 (plus) a month. We will use $500.00 a month payment.
2) Monthly full coverage insurance, depending on type of vehicle, your driving record and your location, etc., $400.00 to $800.00 (plus) a month, generally around the same expense as your payment a month. We will use $500.00 a month payment.
3) License, registration, etc., depending on your state $2100.00 to $8000.00 a year, based on total purchase price of the vehicle, etc. We will use $3000.00 a year, for $250.00 a month payment, you generally have to pay this up front.
Your new car will cost you $1,250.00 a month.
Note: This does not include your trade-in or down payment; this is what you are stuck with.
A new car bought on time, cannot be paid off, if you intend to always drive a new car. In order to get the best bang for your buck, you will have to trade in your old car for a new car every 18 months to less than 2 years.
Note: Trading in cars less than 18 months old usually carries stiff penalties and trading in cars 2 years and older defiantly carries stiff penalties.
Ever hear the phrase “upside down”?
Today American drivers can look forward to more than 60 years of driving.
Your basic car payment a month is $1,250.00, times 12 months in a year, equals $15,000.00 a year. You can look forward to 60 years of driving, so $15,000.00 times 60 equals $900,000.00. Remember this is at the prices today.
Note: This does not include maintenance! New cars are high maintenance! You will be amazed at what is not covered by your warranties /guarantees!
If you are a two car family, the cost (on the low end) will be $1,800,000.00.
If you had put the same $1,250.00 in the bank a month for the 60 years, at 10% interest compounded yearly, Opps my calculator went tilt! At 5% interest compounded yearly, my calculator just quit.
If you try this at home remember at 10% interest a year, every ten years the total will double, at 60 years that total will be six times that. But this is yearly compounding!
For example: $15,000.00, year 1. $15,000.00, year 2. Plus $1,500.00 interest from year 1, is $31,500.00. Plus $15,000.00, year 3. Plus $3,150.00 interest from years 1 and 2. Plus.
At the end of three years you have put in $45,000.00 and you have earned $4,650.00, you still have the original $45,000.00 for a total of $49,650.00. After the first three years your money grows very rapidly.
Your new car, single, will cost you, way in excess of $5,000.000.00 at 10% interest, way in excess of $3,000,000.00 at 5% interest.
Your two new cars, will cost you, way in excess of $10,000,000.00 at 10% interest,
way in excess of $6,000,000.00 at 5 % interest.
Some of you will claim 0%, 1%, 2%, 3% interest on your vehicles, better read the fine print.
Note: None of this includes tires, oil changes, normal wear and tear.
A sales representative carries his financial problems on his back. Clients are not impressed with a desperate salesman, you cannot keep up an act, you drop words into the conversation, and your speech and body reactions are forced and phony.
I know a few sales representatives who their debts under control, eventually eliminating them. One a woman, in real Estate, purchased (cash) cars through Federal auctions. She usually spent less than $1,500.00 for a two year old vehicle that usually had been stored for more than a year.
The cars were so high end, in such excellent condition, and she had no payments, vehicle or full coverage insurance to worry about so she was able to present herself as successful! As a result her business was successful. She did nothing different, except losing the car and full coverage insurance payment, yet her sales climbed dramatically.
Yes, she made money when she sold these high end cars.
One man, in real Estate, restored cars. He bought $200.00 late 60’s, early 70’s muscle cars. He made sure the vehicles were in safe running condition. Then he insisted on having his clients ride in his baby. No apologies. Lots of praise and “fixing it myself”, and, a big and, asking for opinions on paint, interior, etc. He had no payments, no full coverage insurance. He was able to present himself as a successful “doing it myself” sort of man. His clients loved it. His business became very successful. Every time he finished the car, he choose another and began again.
Remember this man had gone the new car to impress his clients for years and while he made a good living, he was stressing out all of the time. His business boomed the day he drove up in his $200.00 car. He still dressed very good and he changed nothing about his business or practices, except no more new car and associated payments.
What about big trucks?
Here is a truth about most truckers, they make enough to keep rolling, barely. Most of their wives work to support their families.
Some people are so afraid of looking “bad” to friends, acquaintances, neighbors and strangers they will literally bankrupt themselves to look “good”. Do you want to impress everyone? Get out of debt! Walk straight and free and you will impress a lot of people.
Teel is a student of Wallace D. Wattles, his unadulterated writings. To get a flavor of the man, get your free chapters here- http://fromameric.aplwdw.hop.clickbank.net
Rhondalyn Teel is also a researcher and correlator of information, Search Rhondalyn Teel on Kindle available on www.amazon.com also available on www.lulu.com
