Tag Archives: Investment

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The Bad Investment

There Comes A Time When We All Have To Make “The Bad Investment” otherwise known as buying a car.  With Any Investment Risky or Not, The Goal Is To Make Money.  In Buying A Car, Their Is No Way to Make Money, Well Unless You Plan To Be A Pimp and Ride Around With Four Working Girls For & Hours A Day. Even Car Salesman Do NOT Make Money From Selling Cars.  Their Income Comes From Fruitless “Incentives” (Sports Packages, Destination Fees, Cash Back) and We Won’t Even Discuss The APR Rate and Monthly Payment That They Convince You Is A GREAT Deal.  Why Would You Pay $564 Monthly For A Car Over 7 Years, When The Car Will Half Worth-Less in 4 Years, And More Importantly, You Will Be Tired Of It In  Less  Then 3 Years.

Cars Lose Money By The Mili-Second.   When You Walk On The Lot, The Car is Worth $20,000. By The Time You Look In The Window Of That Car It’s Only Worth $19,200.  Touch The Door Handle, Another $350 Off The Value.  Sit Inside, $500 Off the Value. Then You Have The Audacity To Test Drive It, $5 Per Mile Of The Value. Now You’ve Soiled The Car With Your Scent and FingerPrints…. ” Down Goes The Value. ”  Since The Car Looks Pretty, And Has A Loud Radio, You Decide To Purchase(or Attempt to purchase).   You Head Inside To Talk To The Devil, er um, I Mean The Car Salesperson.  You Neglect The Fact That You Still Owe $5000+ On Your Current Vehicle. The Salesperson Assures You That He Will Buy The Vehicle(Meaning He Will Add That Onto Your New Loan, convincing You That’s It’s A Good Idea).   Instead Of Securing Your Own Loan Prior To, You Decide To Trust The Serpent, My Apologies, I Mean, You Decide To Trust The Nice Salesperson.  They Dazzle You “Cash Back” “Rebates” and a Million Other “Good Ideas.”     Let’s Not Forget That The Car Is Only Worth About $16,000 At This Point.    The Salesperson Commences to Have Pointless Banter With You. This Gives Them Time To Decide How Much They Can Get You To OverPay For The Vehicle.

The Salesperson Returns With An Offer Of $425 per Month Over 5 Years.  You (With Your Master Negotiation Skills) Say That You ONLY Wanna Pay $400 and WILL NOT Go Any Higher.   The Salesperson Goes and “Speaks To The Manager.”  They Return With A Offer of $405 per Month, But Over 6 Years.  The PointLess Banter Commences Once Again, This Gives Them Time To CONVINCE  You That Your Only $5 Over Your Budget and It’s “Totally” Worth It, Because You Love This Pretty Car.  Your Are ALSO Convinced That This Deal Will Save You $20 Per Month Which is just Under $250 Per Year.  It’s Sounds Great and You Agree To Purchase.  While You Signing All 37 Forms, You offered “Deals” On “Extended Warranties”  “Roadside Assistance” and “Free Oil Changes.”  These All Sound Great So You Agree To These Great Deals.   Nevermind The Fact That New Payment Will Be $448 Over Six Years.    Your First Instinct is That Your Spending Too Much Money and Over Extending Yourself.  The Dealer Starts Talking About “Trying To Work Something Out For You and Just You.”     They Go in The Back and Work Some Numbers, Which is Car Sales Language For ” Drink Coffee and Watch The Game.”   They Come and Say ” We Have An Unbelievable Deal For You.”    The Bank has a New Special and You Can Purchase This Pretty Car For $425 with All Of The Bells and Whistles, Perk and Bonuses, Rebates and Incentives,  Customer Loyalty and Family Discounts, as long as you Extend The Loan to 84 Months.

Quick Question: How Many Years Is 84 Months?   . . . .. . . . .   Guaranteed That You Had To Think For a Second, Not Because Your Math Skills Are Insufficient, It’s Because We Always Have To Think When Making Bad Decisions.

This Pretty, New Car, Listed at $20,000, Now Worth Only $15,800, Before You Even Leave The Lot, is Now All Yours For $425 for 84 Months.   In Your Mind You Saved Over $20 Per Month(Gas Money).  In Reality, Your First Instinct $400 over 60 is a Respectable $24,000 Total.  Your New Special Deal With All The Nook and Crannies,  Sweeteners and Softeners is $425 over 84 Months for Grand Total of $35,700.   That $20+ Dollars Per Months That You Saved, With The Additional Happy Happies and Joy Joys will Cost You and Extra $11,700.

Not A Bad Day, You Wound Up Spending $35,000+ For A Car That’s Only Worth $15,000.  By The Time You Finish Paying The Car Off, That Model Will Not Even Exist Anymore.    No Worries Tho,  The Car Is Pretty and The Radio is Loud.

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